Total household income...............

Discussion in 'Credit Talk' started by greg1045, Nov 10, 2007.

  1. greg1045

    greg1045 New Member

    On credit card applications there are usually 2 questions regarding income. The first one in regards to the applicant's employment, and the second "total household income".
    That "total household income" can be inflated to include the income of other person(s) living with you.
    No credit card application asks for the source of the difference between an applicant's salary information and the information in the "total household income" segment of the application.
    Can credit card outfits force you to reveal the names of anyone else in the household if you are applying in your name only and don't want to make anyone an authorized user?
     
  2. bizwiz41

    bizwiz41 New Member

    The term "total household income" is meant to include a "family unit", usually a husband and wife as the income center. It implies that incomes are pooled for all expenses, something a "roommate" status would not cover.

    I've never heard of company "forcing" disclosure of names. So, put down what is appropriate for your situation.
     
  3. Hedwig

    Hedwig New Member

    AMEX will ask for a financial statement under certain conditions, especially if the credit limit is high or they think you are charging too much. They will put a hold on the account until the financial statement is filed.

    I haven't heard of anyone else doing it.
     
  4. greg1045

    greg1045 New Member

    According to the new bankruptcy laws:


    In determining whether the median threshold has been reached, the law looks at the number of people in the debtors household (which the census bureau defines to be all the people occupying a dwelling unit) compared to census figures adjusted by the CPI.

    The way I read this a "household" is considered ALL people in the household, and not as you stated "family unit/husband and wife". Unmarried men and women can live together (shack up), people can share a dwelling unit, roommateing, so if Jack lives with Jill and Jack applies for a credit card in his name only, he can easily/legally include Jill's income in the "total household" figure, without making her a co credit card user or authorized user.
     
  5. jwrcredit

    jwrcredit New Member

    Just out of curiosity, do they expect gross income or net income to be reported?

    J.R.
     
  6. bizwiz41

    bizwiz41 New Member

    Gross income...
     
  7. jwrcredit

    jwrcredit New Member

    I know this is going to sound unbelievable, but my wife and I have never had a single credit card in our lives. The only revolving account either of us has ever had is a Paypal Buyer Credit that I signed up for to use on eBay and have never needed. Is not having revolving credit affecting my score in a good or bad way or at all? I know a lot of people who tell me there is no way to live without using credit cards, however, we've been able to avoid it.

    J.R.
     
  8. greg1045

    greg1045 New Member

    Always GROSS - which is odd because people on Social Security get an untaxed (at the time of the month they receive it) amount. So, say one receives $1200 a month in SS, but nothing else - annual income would be $14,400.
    There are no boxes on application forms to identify the amount as "gross" or "net".
    So this individual only on SS/$14,400 a year is unlikely to be approved for anything else but a low limit credit card.
     
  9. bizwiz41

    bizwiz41 New Member

    First, good for you that you've "survived" without credit cards. However, having some credit card accounts does help your credit score. This opens up a lot of points, but in general it is better to have some credit card accounts on your credit report (as long as you maintain them with current payment status).

    To perhaps answer your orignal question re: "household income". Since you mention your wife, her income would definitely be included in household income. You would also include any income from investments, interest, etc.

    And these should all be gross numbers.
     

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