Credit Card Facts
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that lets you lump household income in
with your personal income when applying
for a card. Spouse, partner, anybody in
your household you could show in court
that you could reasonably expect help
from in making payments.
According to an amendment to the CARD Act, borrowers over 21 can list any income to which they have “reasonable expectation of access.” https://www.nerdwallet.com/blog/credit-cards/report-income-credit-card-application/
This means I can include my wife's income
which will considerably boost my credit
limit level. I love CC's, especially the ones
I keep for emergencies and never use.
I wonder if 25 year olds living at home can
use their parents income when applying.
The 25 year old if a student can easily get a CC.
Quote: AZDuffmanSince it is unsecured credit, income plays a lesser role anyways.
But it does play a role. A person who
has a $25K income won't be taken
as seriously as somebody with a
$55K because he's including his wife's
income.
Quote: EvenBobI wonder if 25 year olds living at home can
use their parents income when applying.
Yes. I did that when I was like 22. Would not recommend it. Got myself in a lot of financial trouble... haha...
I've had CC's for decades. I remember
around 2000 I opened a new bank account
and when I went in a week later, the
manager handed me a $1000 Visa
card he had gotten for me and tied
it to my account for overdraft protection.
That stopped happening after 2008.
In fact, I remember the limit being
cut in half on some of my CC's,
because they were terrified of people
defaulting owing huge amounts.
I went from $50K on a Chase Visa,
down to $22K overnight. My wife
was furious.
The AP credit card bonus game is going to look a lot different in 5 years, if it even exists at all.
Quote: SteverinosThe AP credit card bonus game is going to look a lot different in 5 years, if it even exists at all.
It'll still be around, they'll just jack up the APR since most people don't pay attention to that anyway (or don't care).
Quote: EvenBobBut it does play a role. A person who
has a $25K income won't be taken
as seriously as somebody with a
$55K because he's including his wife's
income.
It is all "stated income" anyhow. Not really verified.
Quote: AZDuffmanIt is all "stated income" anyhow. Not really verified.
But if they do verify it in bankruptcy
court, and you make $35K and you
claimed $80K, off to prison you go.
Examples on the net..
Quote: Steverinos
The AP credit card bonus game is going to look a lot different in 5 years, if it even exists at all.
That will kill my wife. She's puts everything
on her rewards card. I have a couple and
never even use them, I hate stuff like that.
Just like I hate comps.
Quote: EvenBobThat will kill my wife. She's puts everything
on her rewards card. I have a couple and
never even use them, I hate stuff like that.
Just like I hate comps.
Well if you're spending the money anyway, might as well get the comps.
Quote: SteverinosWell if you're spending the money anyway, might as well get the comps.
I don't like all the crap that goes with
it. People spend a huge amount of
time wringing their hands, losing
sleep, and arguing about comps.
I never give them a second thought.
Quote: EvenBobI don't like all the crap that goes with
it. People spend a huge amount of
time wringing their hands, losing
sleep, and arguing about comps.
I never give them a second thought.
I don’t wring my hands or lose sleep or argue over comps. But I take what they give me.
Quote: SteverinosThere's an interesting battle heating up between banks and retailers over the interchange fee that rewards cards are collecting. Retailers want the right to negotiate that fee. Because of this higher fee, and the lack of negotiating power retailers have in these networks, retailers are starting to raise their prices to compensate, effectively passing the costs of the rewards to consumers themselves.
The AP credit card bonus game is going to look a lot different in 5 years, if it even exists at all.
We have seen maximum interchange fees legislated here in Australia recently. 0.8%. So far the change has been to the EARN rates on these cards. Much lower than previously. But the reality is that unless you have your own business to pump expenses on to it, you will never earn a significant amount of points through spend. The sign up bonuses are where the big chunks of points are and this is just as good as ever.
There are always promos that come up so if the credit card churning game becomes less lucrative there is always the next promo. Why did I take out 15 pet insurance policies last week again? ;)
Quote: AussieWhy did I take out 15 pet insurance policies last week again? ;)
I am a credit card bonus whore. Could you explain the pet insurance?
Quote: EvenBobBut if they do verify it in bankruptcy
court, and you make $35K and you
claimed $80K, off to prison you go.
Examples on the net..
Can you post an example of someone going to prison over misrepresenting income in on a Credit Card application?
Quote: gamerfreakCan you post an example of someone going to prison over misrepresenting income in on a Credit Card application?
Paul Manafort lol
Quote: darkozPaul Manafort lol
Pfff.... that was just a process crime.
Quote: DRichI am a credit card bonus whore. Could you explain the pet insurance?
This one is obviously a promotion in Aus but it was take out a pet insurance policy and the would give you reward points that could be converted to 8,700 Qantas miles. The terms of the promo have allowed multiple lots of bonus points to be earned.
The cheapest policy I found was approx $9 per fortnight. The miles would credit after 30 days meaning 3 payments ($27) before I can cancel the policy. 8,700 Qantas points is conservatively valued at just under $100.
I have done many promotions like this where the value of the airline miles is far more than the cost to participate. As a result I don’t fly economy/coach long haul.
Quote: darkozPaul Manafort lol
Lying on a mortgage application is a Federal crime, supposedly because the Federal Government guarantees them to some extent. I'm not sure a credit card application is the same.
Quote: gamerfreakCan you post an example of someone going to prison over misrepresenting income in on a Credit Card application?
If I get time to look. He had $80K income
and claimed $175K on card apps. He went
$150K in debt filed bankruptcy and did
2 years in a fed slammer for fraud.
Quote: EvenBobIf I get time to look. He had $80K income
and claimed $175K on card apps. He went
$150K in debt filed bankruptcy and did
2 years in a fed slammer for fraud.
Which has nothing to do with lying on a credit card application.
Man lies on a CC application. Uses the CC to buy a gun and shoot someone. Did the man go to jail for lying on his CC application?
Quote: billryan
Which has nothing to do with lying on a credit card application.
He fooled the CC company into
giving him $100K of extra credit
he didn't deserve, then he abused
it. That's fraud. They prosecuted,
hello slammer.
Quote: EvenBobHe fooled the CC company into
giving him $100K of extra credit
he didn't deserve, then he abused
it. That's fraud. They prosecuted,
hello slammer.
I am highly skeptical, but I await your source.
Credit applications read “income you reasonably have access to” which is so vague I can’t imagine any lawyer not being able to get their client out of jail time at minimum.
Huh? You think running up cc debt and going bankrupt is punishable by going to jail??Quote: billryanWhich has nothing to do with lying on a credit card application.
Man lies on a CC application. Uses the CC to buy a gun and shoot someone. Did the man go to jail for lying on his CC application?
That’s. Not. Fraud.Quote: DRichIt sounds like the fraud to me was running up debt with no intention to pay it off and then declare bankruptcy. It wasn't lying about income.
David P. Gaylord, sentenced to time served, five years supervised release, and over $40,000 in fines. Sentenced specifically for loan application fraud, to include lying on credit card applications.
Illegal as per 18 U.S. Code § 1014, and punishable by up to 30 years in prison and $1,000,000 fine.
Quote: AussieThis one is obviously a promotion in Aus but it was take out a pet insurance policy and the would give you reward points that could be converted to 8,700 Qantas miles. The terms of the promo have allowed multiple lots of bonus points to be earned.
The cheapest policy I found was approx $9 per fortnight. The miles would credit after 30 days meaning 3 payments ($27) before I can cancel the policy. 8,700 Qantas points is conservatively valued at just under $100.
I have done many promotions like this where the value of the airline miles is far more than the cost to participate. As a result I don’t fly economy/coach long haul.
Thank you, I am always looking for these kinds advantages.
My favorite here was an airline called Airtrans (now Southwest):
"AirTran is doing a promotion with Wendy's here in the US. Collect 32 medium or Biggie sized cups to get a one way AirTran A+ reward ticket. Collect 64, and you get a round trip ticket."
There was no limit. You could just go to Wendy's and by the cups without a drink for about $1.29. The big money was buying them for about $0.25 each on Ebay. Round-trip tickets for less than $20.
Quote: TigerWuHere you go, folks. Pretty sure this is what EvenBob is talking about.
David P. Gaylord, sentenced to time served, five years supervised release, and over $40,000 in fines. Sentenced specifically for loan application fraud, to include lying on credit card applications.
It's not the one I saw but it will do.
Gaylord engaged in an escalating series of attempts to qualify for credit cards by puffing up his income. In April 2006, he allegedly told Advanta that he earned $90,000 a year. In August 2006, he allegedly told Family First Federal Credit Union that he earned about $110,000 a year. In September 2006, he allegedly told Bank of America that his total household income was $122,000 a year.
Gaylord, now 50, and at one time a real estate agent, earned "substantially less" than any of those amounts, according to the indictment.
A bankruptcy filing appears to be related to the case. According to records on file at the United States Bankruptcy Court for the western district of New York, Gaylord filed for Chapter 7 (debt liquidation) bankruptcy on Jan. 16, 2008.
He claimed assets of $135,058.72 and debts of $341,118.86. According to the filing, he owed $17,000 on the Advanta credit card, $57,141 to Bank of America, $12,588 to the Family First Credit Union, $85,312 to various other credit card companies, and $49,024 related to debts owed to Wells Fargo bank.
Lee, the prosecutor, said she couldn't comment on any specifics involved in the genesis of the case.
Quote: DRichThank you, I am always looking for these kinds advantages.
My favorite here was an airline called Airtrans (now Southwest):
"AirTran is doing a promotion with Wendy's here in the US. Collect 32 medium or Biggie sized cups to get a one way AirTran A+ reward ticket. Collect 64, and you get a round trip ticket."
There was no limit. You could just go to Wendy's and by the cups without a drink for about $1.29. The big money was buying them for about $0.25 each on Ebay. Round-trip tickets for less than $20.
My favourite so far has been when a bank over here gave 5 Qantas miles per transaction on a regular debit card linked to a bank account. Didn’t specify a minimum transaction size. Account closed by the bank 2 years and 190,000 1c payments later (on a friends phone bill which he reimbursed me for) after I’d racked up close to 1million miles for an out of pocket cost of $0
Enjoy:
https://www.australianfrequentflyer.com.au/community/threads/bankwest-transaction-account-general-discussion.59199/
Quote: unJonHuh? You think running up cc debt and going bankrupt is punishable by going to jail??
You got that from my statement?
Yes. It was the juxtaposition of spending $150k and going bankrupt with buying a gun and killing someone. Just reread your post and will double down on my read. Guessing you didn’t intend it that way from your post above.Quote: billryanYou got that from my statement?
As for me, I don't even understand what's the point in lying to take credit, when there are a lot of small companies who can help you.
Also, all these bonuses in stores, when buying a ticket, etc really help when you need it.
I used credit only a few times when I hardly needed to pay my bills and didn't have a job. I just found on the Internet something like webmoneyloans and get my money in 1 or 2 days.
That's not a promotion, but a fact - better choose something like that and give it back fast then take credit and pay big fees.
Quote: TigerWuHere you go, folks. Pretty sure this is what EvenBob is talking about.
David P. Gaylord, sentenced to time served, five years supervised release, and over $40,000 in fines. Sentenced specifically for loan application fraud, to include lying on credit card applications.
Illegal as per 18 U.S. Code § 1014, and punishable by up to 30 years in prison and $1,000,000 fine.
Based on the link Trump should spend a long time in prison but he probably wont
The key word is "knowingly". Small exaggerations probably will never be prosecuted
