Does anyone know how much it matters to state your correct income on a credit card application?
I am trying to increase my credit rating, and one way to do that is to increase my debt-to-available. I really don't make that much, but I would like a card with a high available balance. I would barley use the card, but need my rating up to buy a house. I am currently using like 60-70% of my credit. (I know...should have never let it happen, but I am learning.) It didn't help that Chase closed my WaMu account and I lost $10k in available credit!!
How often to creditors check into this?
I am not saying that I would like drastically alter my pay rate by double or more, but is there a harm to say like add an extra $10k-$15k to my salary? Does that really make a difference in the amount they offer you?
I do side work, but don't enough to claim it on my taxes. So I have the money.
It wouldn't make much of a difference. Besides, I don't think it's ever a wise move to provide false information on an application for credit. It could come back to bite you in the butt down the road.
And inflating your income isn't going to improve your credit utilization ratio anyway. The only way to do that without increasing credit limits is to reduce the amount of credit you use on a monthly basis. The 60-70% is really hurting you.
Also, credit card issuers were known for never verifying income in the past, but more and more are doing so as they continue to tighten underwriting standards. You may find that they will come back to you and request recent tax returns, paystubs, etc. I've received several emails lately from others who have experienced this with major credit issuers.
You are providing false information, never a good idea.
If you "really don't make that much" and are using 60-70% of your credit, you really have no business buying a house right now.
This may sound mean, but I don't intend it that way. It justs irks me that so many people buy homes they can't afford. If you can't afford to pay your credit cards down, how are you going to pay for the furnace that breaks, or the damage from the pipes that burst? How are you going to pay the ever-increasing taxes and upkeep? Not to mention just the closing costs on the house. There is much more to home ownership than paying a mortgage. Before you buy a house, you should have enough money for a reasonable down payment plus at least six months worth of expenses saved. That way if you lose a job, have an accident and can't work or something, you can keep going for a while.