Annual Household Income?

[littlejuanito]

I just applied for the Capital One CC. In the Annual household income I put down $65,000 which is what me and my roomate make. I make 25k and he makes 40K. I would assume this is correct information as they did not specify that I had to put down my "own personal" annual income. Anyone agree with me on this and if so, can I do this for other loans?

[littlejuanito]

Anyone?

[Jenny]

Credit cards are not the same as bank loans. For nearly every application, the "household income" listed on a credit card application is never verified. You can pretty much put whatever you want there. Unless you list some outrageous amount way over what it really is, you'll probably never have a problem.

Bank loans like mortgages, car loans, and personal loans are totally different. If you're asked for "household income", then all the people who contribute that income become responsible for the loan. If you want a car loan with an income of $65k, then your roommate would have to co-sign the loan and co-own the car.

This is one of the reasons credit cards have volatile terms. The interest rate can change at any minute. The credit limit can drop or get raised at any time. The bank is taking a huge risk and isn't verifying the info you give.

[SinkingFast]

If you get into financial trouble, the CC can tag you with obtaining the line of credit fraudulently.

Say you run up your line of credit. You and your roommate go splitsville and you have to pay the rent alone. Say you can't swing the rent and pay your CC bill.

If Cap One comes after you, they can claim they gave you a $10K line of credit based on fraudulent information provided by you.

[FilingOnMyOwn]

Yeah you did it right. Household income includes everything that is earned in your house. I applied with them too and they called me back to verify it.

[littlejuanito]

Like "filingonmyown" said. Income is everything that's earned in the house. Where's the fraudulent part about it?
"TECHNICALLY" I put down the right information.

[SinkingFast]

Technically speaking you both may be right for reporting income on a CC application, but,..........

According to the Census Bureau and the IRS definitions of a household, you are both wrong.

People occupying the same domicile related by blood and/or marriage constitute the same household according to both the Census Bureau and the IRS.

Also, according to the Census Bureau and the IRS, one domicile can house several households. Such as college roommates living together to share rent and utilities expenses. The individuals are not related by blood and/or marriage, therefore, each individual is a household.

If you get into financial trouble, the CC can throw this all back in your face since the IRS Codes and the Census Bureau definitions are the basis for much of BK Law.

Just an FYI for future reference if something were to happen.

Best of luck to you. I hope everything goes well, you get the CC, and live happily ever after, with no further credit problems. Truely I do.

[littlejuanito]

Glad to get it explained. Thanks for the info sinkingfast!!

[SinkingFast]

You are very welcome, LJ.

I spent a lot of time researching that info for our own BK.