What should I put on my applic

Discussion in 'Credit Talk' started by Lori, Aug 18, 2000.

  1. Lori

    Lori Guest

    I am disabled and on Social Security Disability. I receive under $7000 a year. If you add my rental assistance, medical insurance, and food stamps, it's like I'm receiving more like $18000 a year. I've had a secured credit card plus a couple of Deptartment store credit cards over the past year and my payments are as yet flawless. I am denied because of my income (I put 7000). Should I put that I receive 18000? It would be a lie. How should I handle this?
  2. CardReport

    CardReport Guest

    RE: What should I put on my ap

    Banks are prohibited from denying credit just because the applicant receives some kind of welfare/government benefits. However, creditors may set whatever minimum income standards they want.

    The food stamps *might* be borderline considered income, since they function as money for food, which you have to buy anyway.

    The rental assistance (Section 8?) isn't really income for you if it is being paid directly to your landlord. For you, it's more like just having very low rent.

    The medical insurance (MedicAid and MediCare?) isn't really income for you since the money changing hands is from the taxpayers to the medical providers, via the government.

    So for purposes of credit card applications, your income is the amount of actual money in the form of your monthly checks/direct-deposits.

    As you have already figured out, $7K is the truth, and $18K is a lie.

    So how to handle it is that you can either tell the truth, or you can lie. You *could* submit some kind of statement pointing out all of the non-cash benefits you receive (including documentation), although you would most likely need to apply in person, and try to make your case with some bank manager. I suppose it can't hurt to try, although I doubt that it would work. Applications which are processed by automated systems will simply be rejected as, "The number in the 'income' field isn't big enough."

    Note that it is a crime to obtain credit by lying on applications, and if you default and attempt bankruptcy, you may not be able to discharge debts which involved fraud on your part. Also, even if you pay on time, if the card issuer finds out that you lied, they will most likely close the account, and demand that all of the debt be paid *immediately*.

    Try Bank Of America - I vaguely recall seeing some application of theirs with a minimum income that you might meet, although it may have increased since then, and they might not like the fact that you have other cards (i.e. more total debt potential.)

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