Bianca Smith, WalletHub Credit Cards Analyst
@bianca_stoian
Yes, credit cards do check your income when you apply. Credit card issuers are required by law to consider your ability to repay debt prior to extending a new line of credit. So, listing your annual income is a requirement on every credit card application. To that end, credit card issuers may also ask for proof of income, such as pay stubs, bank statements, or tax returns.
That said, credit card issuers don't always check the accuracy of the income you write down. Unless your income is suspiciously high or low, credit card issuers will often skip the hassle of verifying the numbers. But that doesn't give you leeway to fabricate higher earnings.
What you should know before listing your income on a card application:
- Self-Reported Income: When you apply for a credit card, the issuer asks for your annual income on the application. This can include salary, income from investments, side gigs, or rental properties, household income (if you’re 21 or older, you can include a spouse or partner’s income), retirement benefits or other consistent sources of income.
- Verification: Credit card issuers usually don’t ask for proof of income but may do so in certain cases, such as applying for a high credit limit, having limited credit history, regulatory compliance checks. In these instances, they might request documents like pay stubs, tax returns, bank statements.
- Debt-to-Income (DTI) Consideration: Issuers use the income you provide to evaluate your ability to repay debt. They may compare your income to existing debt obligations (visible through your credit report) to determine your creditworthiness and appropriate credit limit.
- Legal and Ethical Responsibility: You are required to provide accurate income information. Misreporting income on a credit card application can result in account closure, difficulty qualifying for future credit or potential legal consequences.
You can learn more about how your income impacts your credit limit and approval odds, right here on WalletHub.
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