Log In
Register
Home
Topic RSS
Facebook
Twitter
Email this2:11 pm
October 21, 2013
Offline
I've always been puzzled as to how they could know what people's incomes are - especially retired folks with multiple income streams.
2:21 pm
April 7, 2017
Offline
Exactly. I believe it is based on how consistent you report your income for credit cards etc. And that information is held by the credit bureaus and differences may cause some bells to go off???
3:13 pm
April 6, 2013
Offline
Canadian credit bureau records have employment information. But, that does not include employment income.
If lender wishes to confirm current income, a letter is sent to current employer asking for confirmation. For self-employed or retired, the lender can ask for a copy of the notice of tax assessment from CRA. People usually don't exaggerate their income to CRA. 
5:17 pm
October 21, 2013
Offline
Has anyone ever heard of them actually making these inquiries?
And, just like the stock market, "past performance is no guarantee of future success". Last year's income does not tell this year's story.
By the time you're retired, one's creditworthiness is well known.
6:25 pm
April 7, 2017
Offline
No, and I have never provided or asked to provide.
But I have a co-worker that worked for our credit card and he advised that the income you state on a credit application is information that credit bureaus keep registered against your profile. So 2016 you say $95,000 and 2017 you say $130,000.......you may be denied the credit you are applying for. It is called shooting yourself in the foot. And yes Loonie we retired folk can have some real big fluctuations year to year with unexpected taxable payouts
6:36 pm
October 21, 2013
Offline
It all seems so nonsensical. All I have to do if I want more "income" is to buy an annuity, cash in an RSP, sell a property or art, rent to airbnb, or simply take it out of the bank - whatever. But my choice is to arrange my income for tax purposes. And that's a bad thing?
7:01 pm
December 4, 2016
Offline
They often don't verify income, most CC companies.
If they think something is wrong they will check. For example, you say you're a general laborer and make 200,000.
People often exaggerate their income to either get a higher limit. I think the max is 50,000 for most normal Credit cards. Or they are trying to get a premium card. With income requirements usually being 60,000 or 80,000 personal income.
It is fraud to lie on a application for credit. In combination with other lies it could help to cause someone to go to jail.
Recall a CC company can withdraw you're card at anytime. If they find out you lied or you don't spend enough with the card. They can remove you without warning.
If you rely on one CC that could be a headache.
Someone might argue that if you report less income than you actually make that is also fraud... So..... Common sense should prevail. If you're off by a bit they aren't going to come knocking down your door. At least I've never heard of it.
10:30 pm
April 6, 2013
Offline
Loonie said
Has anyone ever heard of them actually making these inquiries?
And, just like the stock market, "past performance is no guarantee of future success". Last year's income does not tell this year's story.
…
Yes, I had to respond to such inquiries during a time I was self-employed. I had applied for a credit card during that time. The bank said I did qualify based on the income I entered on the application and the history of my current credit card with them. However, I needed to provide evidence of that self-employment income.
For employees, if the bank would like to confirm income and employment, it will contact the employer directly.
I agree with User230. Credit card issuers don't verify income unless they feel a need to. It is not an automatic process to do the verification. After their phantom ticking fiasco, Home Trust/Home Bank now has a dedicated team just for that!
Please write your comments in the forum.