To get a credit card, you usually have to meet a certain amount of income. If you want to get a credit card, you should never lie about your income. Here is what you need to know about how much money you need, what will happen if you lie, and better ways to get approved.
Why Credit Card Companies Ask for Your Income
When you apply for a credit card, companies will ask for personal details like your name, address, Social Security number, and date of birth. They’ll also ask about your income.
Credit card companies want to know your income for a few key reasons
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To verify you can make monthly payments. Credit card companies are legally required to check that applicants have the means to pay back debt. Asking for income helps issuers assess if you can manage monthly payments.
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Creditors use your income to figure out how much credit you can responsibly handle when setting your credit limit. Higher earners often get higher limits.
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To offer perks and benefits. Issuers may offer premium cards with benefits like airport lounge access and travel credits to higher income customers who can justify the annual fee.
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To assess risk. In general, high income borrowers are viewed as lower risk. Credit card companies charge people with lower incomes more in fees and interest.
Knowing why cards ask for income is useful. What if your income is low or you’re not working right now? Does it still make sense to lie on a credit card application?
The Consequences of Lying on a Credit Card Application
Lying about your income or employment when applying for a credit card is never advisable. Here are some key reasons why:
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It’s illegal. Providing false information on a credit application is considered fraud. If caught, you could face fines up to $1 million and decades of jail time.
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You could be approved for too high of a limit. Getting a credit line that exceeds your true income could tempt you to overspend. This often leads to unmanageable debt.
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Your account may eventually get shut down. Issuers can review your account at any time. If your actual spending seems inconsistent with reported income, the card could get closed.
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Future credit applications may raise red flags. Once you’re caught lying, it can be difficult to get approved for honest credit applications down the road.
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Bankruptcy can lead to further investigation. If excessive debts lead you to file bankruptcy, card companies dig into your finances. Lies could surface during this process.
In most cases, it’s not worth the risk. Credit card companies have sophisticated systems to root out discrepancies over time. Plus, the immediate rewards of slightly higher approval odds or credit limits simply aren’t worth potential legal consequences.
Do Credit Card Companies Verify Income?
When you hit “submit” on an online application, does the credit card issuer actually verify your stated income is accurate?
In most cases, income details are taken at face value during initial application review. This is especially true for minor or moderate discrepancies. After all, verifying every applicant’s income would be extremely labor intensive.
However, credit card companies absolutely can verify your income if desired. Legally, they have every right to validate the details submitted. Some key points:
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Issuers may ask random applicants for income verification during underwriting. This helps ensure honesty.
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Large discrepancies between stated income and other details often trigger manual review. Lying egregiously can increase verification risk.
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Income can be checked during periodic account reviews after approval. Suspicious spending patterns may prompt verification.
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If you file bankruptcy, income details submitted on previous applications often get thoroughly scrutinized.
The bottom line? Don’t assume credit card companies won’t verify income. While routine checks are uncommon, issuers do have the ability to validate your earnings.
Better Alternatives to Income Fraud
If you need access to credit but don’t meet minimum income requirements, there are legitimate alternatives to lying on your application. Here are a few options to consider:
Apply for a secured credit card. Secured cards require a refundable security deposit, so they are available to applicants with limited credit or low income. Making payments builds your credit over time.
Become an authorized user. You can use the account of a friend or family member who adds you as an authorized user. Their spending and payment history impacts your credit.
Work on improving your credit. Pay all bills on time and lower credit utilization to incrementally improve your creditworthiness over several months.
Provide context on income fluctuations. If your income legitimately fell recently, brief explanations on your application may help provide useful context.
Offer to put down a security deposit. Issuers may be willing to work with you if you offer a deposit upfront as a sign of good faith.
Consider credit builder loans. These loans report regular payments to credit bureaus. Once repaid, the money you “borrowed” is returned to you.
Apply for student credit cards. Student cards tend to have lower income requirements and are ideal if you’re young and new to credit.
The Bottom Line
Credit card companies want to lend responsibly. Lying cheats their risk models and may saddle you with debt you can’t repay. Furthermore, fraud penalties are severe, ranging up to millions in fines and decades behind bars.
If you don’t meet stated income requirements, explore secured card options, authorized user status, or credit building loans. With patience and responsible habits, you can build qualifications for a traditional unsecured card over time.
What happens if you’re caught lying on a credit card application?
Lying on a credit card application can be a costly mistake, as it constitutes fraud and can result in up to $1 million in fines and/or 30 years in prison.
In 2012, a man was convicted of bank loan application fraud after being accused, years earlier, of reporting $12,488 of income to the IRS and $90,000-$122,000 of income on multiple credit applications. While he wasn’t fined $1 million or sentenced to 30 years in prison, he did have to pay a fine of almost $50,000 and was sentenced to time served and supervision upon release.
And keep in mind that while a lie may not be discovered immediately, its possible it could haunt you later. After all, if you feel the need to lie on a credit card application, it’s likely because such a product doesn’t fit into your budget. And if youre unable to manage a high credit limit responsibly, it can quickly spiral into a mountain of expensive debt. (Credit card APRs are routinely in the double digits.)
It can get worse than that, too. If youre so buried in debt that bankruptcy becomes your only option, then credit card issuers and other banks will work to determine why it is that youre unable to pay. Theyll require tons of data and documents from you, and that information could lead to legal woes if it doesnt corroborate what you stated on your initial application.
Does your lender really verify income and debt information?
By federal law, lenders cannot extend credit to someone without first determining that the applicant has the ability to make payments, which is why credit card applications ask for things like your income, employment information, and what you pay in mortgage or rent.
The credit card company might not ask for verification of such information, at least not immediately. And the truth is, large discrepancies are much more likely to raise red flags than “fudging.” For example, if you claim $10,000 of income on your tax return and $90,000 of income on your credit card application, you have a better chance of getting caught than if you claim $10,000 and $12,000, respectively.
But the application and underwriting process for credit cards has grown ever more sophisticated over time, and lenders — especially ones that you already have accounts with — can much more easily ferret out problematic data when you apply.
Theres also nothing preventing a lender from periodically reviewing your account even after youve been approved.
Do Credit Card Companies Verify Income to Check for Lying? What to put for income on an application?
FAQ
What happens if you lie about income when applying for a credit card?
It’s also important to note that lying on a credit card application is considered a form of fraud — one that could land you hefty fines or even prison time if you’re caught.
Do credit card companies really check your income?
Lenders may look at how much money you make compared to your monthly bills, such as your rent, loan payments, and the minimum payments on your other credit cards. March 2, 2024
Is it illegal to lie about proof of income?
Not just “technically.” It’s fraud and it is totally illegal.
Do you have to show proof of income for a credit card application?
… tax returns when you apply for other financial products like personal loans or a home mortgage, credit card issuers don’t typically require proof of incomeMay 21, 2025.