When you apply for credit cards, you must state your income. Some companies ask for proof of employment and income before extending credit. This helps them ensure that you can pay your bills.
Though they verify your income, credit card companies won’t call the IRS. You must provide any documentation they will see. They may ask for:
- Tax documents
- Recent pay stubs
- Bank statements
- Pension statements
- Unemployment statements
These documents allow them to determine if you’re a credit risk. If they believe you can’t pay, they’ll deny your application.
The Bottom Line
Never lie about your income on a credit card application. If they discover that you’ve lied, you could be charged with fraud. This is an illegal practice.
People often lie to get better interest rates and credit card benefits. Unfortunately, this often comes back to haunt them. It’s also a good indicator the card didn’t really fit into their budget.