What Happens If You Put Wrong Income On Credit Card Application? (2024)

FAQs

What Happens If You Put Wrong Income On Credit Card Application? ›

Lying about your income on a credit application is fraud, which has potential legal implications. Even if you avoid legal trouble, however, the credit card issuer may close your account, forfeit any rewards you've earned and have you repay the outstanding balance.

If you accidentally put the wrong income on a credit card application, call the card issuer to correct it. Although card issuers usually don't verify income, it's important to provide accurate information. It's technically fraud to knowingly provide a higher income than what you make on a credit card application.

To summarize, lying on a credit card application is a punishable crime – on both the state and federal levels. Although a state conviction only leads to a year of prison, a federal conviction could land you decades of imprisonment and a hefty fine.

Mistakes on your application form

If you realise you've made a mistake on your credit card application, contact the lender to let them know. That way they can review your application based on the correct information.

Similarly to asking about your income, credit card issuers may ask for your employment status. This is also to help ensure you have a steady income in order to make repayments on your debt. In the same vein, issuers might reach out and ask you to confirm your income every year or so.

Take the time to provide an honest estimate. It is never a good idea to exaggerate your income. But also make sure you're listing all eligible income sources — such as side hustle income or income from part-time work — to improve your chances of being approved.

You can use a 1040-X to submit additional or updated information to the IRS and to attach another form to your tax return. Pay any additional tax owed as quickly as possible to avoid accruing interest.

W-2 Employees: Applicants must provide a copy of their most recent pay stub. The pay stub must be computer-generated, include year-to-date earnings and taxes withheld, contain no alterations, and must have been issued within 40 days of the faxed date.

The only real way to cancel a pending credit card application is to contact the issuer's customer service and ask if they can cancel or change your application. This may be impossible depending on how far along your application is or who the issuer is.

A grammar error certainly won't earn a candidate any points, but it doesn't hold the same weight as, say, putting in the wrong employment dates for a past job. If you discover a major factual error after you apply, it's best to resubmit your application.

How do creditors verify income? ›

To obtain pre-approval or approval for a loan, we require the following documentation: Paycheck stubs for the past 30 days. Two years of W-2 forms. Two months of checking and savings account statements.

If your monthly income is $2,500, your DTI ratio would be 64 percent, which might be too high to qualify for a credit card. With an income of roughly $3,700 and the same debt, however, you'd have a DTI ratio of 43 percent and would have better chances of qualifying for a credit card.

Banks may ask to see as many as your last three paystubs to verify your income, whether you work full-time or part-time. If you have several part-time jobs, be sure to bring in paystubs from each job.

It's easy to make mistakes that can cause your application to be denied, like typing in an incorrect address, misreporting your income, or using the wrong social security number. If you see you've made a mistake on the application, contact the lender and discuss how this should be addressed.

A 90-day history is required to include income beyond base pay, BAH, and BAS. From January 1 through April 30, a W-2 or yearend LES from the prior year (in addition to the most recent LES) is necessary to include additional income. Seasonal Income: Applicants must be currently and actively employed.

The company may cancel the loan, and if it doesn't cancel it, you may have to immediately repay any loan funds you've received if the lender learns that you've misrepresented yourself. Your credit score and ability to take out loans in the future may also be impacted.