Credit Card Applications - the income declaration

Every credit card application has the dreaded Income Declaration field where you are supposed to state your household income. Maybe people are unsure about this field and how to answer.

Here are some common concerns:

  • Will they verify my income?
  • Should I lie and declare more than I make?
  • WTF? It’s none of their damn @#$%#@$$ business!
  • Does this field actually matter in their decision?

Well, those are all good questions and it’s like that “Do you have a criminal record?” question on job application. It’s a Catch 22…if you lie you get screwed, if you tell the truth you get screwed. Luckily, this isn’t necessarily the case for the credit card income question. Here are some truths associated with the field:

  • The income is used for serious decisions like approval and credit line allocation
  • NO they do not cross reference or verify what you state - income is not in your credit bureau but can be inferred through revolving balance in your credit report
  • This is household income so feel free to add income from your kid’s $8/hour job at the Gap

I’m no advocate for lying, but in this case it really doesn’t hurt to stretch the truth a little given the vagueness of the question at hand. Having a higher income will ensure that you get approved and that you receive more favorable terms.

Don’t quote me on this.

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