What Income SHOULD You Put On A Credit Card Application?

up and welcome back to the channel I'm gonna call this hot topic Thursday even though it's not Thursday and even though it's not really hot topic but but you guys I made a post on Facebook talking about whether or not you guys shall lie on your credit card income statement and I know a lot of people don't know usually what to put there and I'll tell you guys my personal story real quick before I get into this on Facebook but basically when I was a student which was not too long ago about two years ago I was not making that much money I was working with kids with disabilities and I was making what like two hundred dollars every two weeks it was pretty bad it was like a hundred dollars a week yeah it was like five to six thousand dollars a year that's what my income was when I first started two years ago a lot of things have changed since then but I feel like if I applied for a credit card and put that down I would have gone rejected and the reason why I say that is because I had a buddy who also was not making any money and he applied for the discover it card he's one of like the most honest people I know and I was telling them look hobby put put your estimated income after college don't put your income that you have right now for your Discover card guys I kid you not I've never seen anything like this but my buddy got my buddy got denied for the Discover it's student card I I think that's like the first data point to exist in the history of credit cards he actually got denied for a beginner Discover card they didn't even give him like a $500 credit limit so I told him look you can go for a secured card next but he was just like look man if I if I'm not getting accepted for their lowest tier of the credit cards then I'm just not even gonna bother it's kind of funny actually there are a couple reasons why you guys actually want to increase your income level on your application we're gonna be talking about the disadvantages what will happen if you get caught is there consequences is this a banner bull offense will you go to prison for the rest of your life and get a $10,000 fine we're gonna figure all of this out but before we do I want to say thank you all for tuning in to this channel we hit 11,000 subs just recently and it means so much to me you guys the Facebook group is literally popping I see notifications every single day so thank you so thank you all for the support I freaking love all every single one of you guys that so I'm gonna actually start my screen recording on my computer alright so we're gonna open up this post you guys because there a hundred and twenty three comments on this post I'm not gonna be able to go through all of them so the way I'm gonna determine which ones I'm gonna read about is the ones with the most amount of likes because if I went through a hundred twenty-eight comments and gave you guys my thoughts on each one of them this video would be half an hour long at least we'll start with the first one Brandon Muller he says yes you should lie on your credit card income statement and the reason is if you have a lot of debt lying will decrease your debt to income ratio which is favorable but also no in the case where you have enough credit with a specific creditor for them to audit your taxes I like this answer because you're kind of just sitting along the fence you're not really devoting to one thing and before I even started this video I want to give a disclaimer everyone who says yes and lies back them up an X let's get them we got a second off everyone is saying yes hypothetically maybe they do maybe they don't but I'm gonna share with you guys exactly why it doesn't even matter at the end of the video yes what he said the first part is true if you guys size up your credit limit which means if you're making $5,000 a year and you say you make fifteen or twenty thousand dollars a year there's a few benefits of that you guys have a higher chance of getting accepted for that credit card on top of that you also have a better chance of getting a larger credit limit line if you're someone who's very iffy about paying off their balance and you want to keep that utilization under 10% 3% even 1% which will increase your score a lot of the times having a higher income will allow you to get that higher credit limit for your account and basically that means your utilization will decrease and then what that means is your credit score will go up so basically lying on your credit card income application could in theory help your credit score because of the utilization factor okay I like David Brown's comment because he's super like he's not like you shouldn't you shouldn't so I like this guy he says lie why in the world would you lie when they can easily request income verification they should start making it a requirement honestly when you apply for a card send in w-2s or pay stubs it could save you a lot of hassle especially for CL eyes which is credit limit increases they would know your income supports your credit line okay so David one of the reasons why they do not actually go through everyone's pay sup that's just too much work if everyone has to submit something for a credit card so think about it like this credit card companies are actually benefiting a lot more when someone signs up for a credit card if we have to go through an extra layer and pull out last year's pay stubs and go through all like a whole nother process it just deters more users for signing up for credit cards a lot of the times they will actually not request for an income verification it has not happened to me the only time that happens and that is actually called a financial review is if you do something stupid on your account if you do something called manufacture spending where you go out and buy gift cards to get yourself points and then reload and do that you can get a financial review if you go crazy with the spending limit power which I did by accident in a video they will actually run a financial review on your account too just to verify things so you're not gonna run off with all their money that actually happened to Sebastian over at SMB two and he made a video on it awhile ago when they asked him for a financial review if you guys do things that raises a lot of red flags for these accounts then yes this will happen to you but if you're someone that just gets these credit cards use them like they're meant to be I would not worry about it now for the most part financial reviews aren't that bad you just have to send in some type of verification and some document they do hold all your cards like you can't use your cards during that time they do the review and sometimes it takes a while for them to happen but usually once you get it done it doesn't happen again and this system also works for many different platforms like Facebook if you're an advertiser on there and I've had a ton of experience on Facebook and this is what I was told from them I believe the way that the risk factor algorithm applies to American Express as well every one of these companies have a certain risk factor for each profile so say you know Brian junks got his credit cards but I start doing some shady activity I'm buying things like all over the state I'm sending my money over to China you know I'm buying like a whole bunch of like gift cards and I'm going to 7-eleven every single night for five hundred dollar purchases the algorithm is gonna increase my risk level and what I believe is if you hit a certain threshold for that risk level that's when that financial review triggers so I want to worry too much you guys I don't think doing one thing is gonna trigger it because like I said before I did the whole spending limit thing where I was like clicking the spending limit to see how much I had on my gold card and I put it up to like 30k and nothing that still has happened to me knock on wood David I really appreciate your comment I like that opinion right there so a lot of people did respond to it you guys and you know there's some memes in here it's pretty funny let's scroll down Cabiria says I would say combined your whole household income Lowell instead of lying okay this raises a very good point and this is what I mention a lot on my channel as well don't think about as lying you guys you're not essentially lying if you have a mentality or a mindset of something you didn't really know or something you weren't sure of so instead of just putting what your income is right now as a student think about all the assets and all the investments you have say you have twenty thousand dollars in stocks right now and you're getting a dividend return of like five thousand dollars a month and I know those numbers don't really match up but hypothetically let's say that so say you're getting five thousand dollars does that go towards your income there is like a gray area they're not exactly asking for exactly how much you're making at that moment think about it like this to say you just got out of college and you've done your internship and you secured the job and you know you're gonna get paid a $60,000 salary for a corporation but at the moment you don't have that money and it hasn't actually rolled in yet would you put that income of what you're gonna make that year or would you put your income last year as a student where you didn't have a job and you were in school this is a gray area and I believe one of the keys to this is just to figure out how you're gonna talk yourself into it if you do get a financial review so this person mentioned household income that completely is fine - that is a okay they're not asking for just your income if you have family members living in here if you got your grandpa living in the house if you got other cousins and brothers and people you can combine your household family so if anything ever does happen you could just be like yo Jimmy yo mom could I get your financial review statement from last year could I get your bank taxes and just submit that and the financial review is over just that quickly so don't think you're limited to just yourself this really isn't a great area and that's why there are 123 comments on this this is based on what your perception is if you're someone that doesn't want to risk that you know Steph Curry three-point shot with five seconds left on the clock you're someone who likes to play the safe you always make sure the chances you take are very minimal then definitely of course you're gonna be someone like David up here but if you're someone that knows where look I'm someone that's good at talking I understand the rules and these are a little bit of the loopholes around the rules then that's completely fine but there is a spectrum to this you have to figure out whether or not how far you are on this spectrum and how that works but I'm gonna get into some really exciting things towards the end of this because people are asking me what should I put I'll tell you guys exactly what you should put regardless of how much you make at the end of the video but continuing down we're gonna be talking about Zelda because I see her a lot I base my income off of 80% of my real income that way they're surprised if they ask for proof I've never seen anyone actually reports something lower than what they make but she must be making a good amount of money Zelda because I've never heard that maybe you're a fan of the 80/20 principle because I love that principle but that that's something I personally don't do JP CEO here comments when they asked household income I assume they meant my entire apartment complex bull JP you are a clown for that bro that's pretty funny man so that kind of reinforces what I mentioned that kind of okay that it's a great area you guys cuz that's what they asked for what's your household income is and on top of that assets what you have okay and guys I don't want to get too grim here but if someone in your family passes away are you going to inherit any of their properties any of their wealth where does that money go to so you guys really have to think outside of the box when it comes to this especially when you're not making the income that you think you have right now that's gonna qualify you for the best APR the best credit limit and get you a proof of that card when they ask him for income verification y'all lying they're going to sprinkle that band dust right on you I really don't think it works like that in my opinion they're not just gonna ban you you guys Express Chase Capital One City they're all big companies they're not looking to just ban and punish out their customers just cuz you put a little bit more of your income than you do make and honestly you guys they make a lot of money - every time we use our credit card because of that transaction fee and if you go over your APR your balance and you start paying them they're making a ton of money so they're not likely to start banning people because people exaggerate what their income is I'm telling you credit cards have been out for a while and most people exaggerate their income that's just the way it is if I had a statistic out there and it was anonymous and I told people put your honest answer did you exaggerate your income most of them will say yes I would say at least 60 to 80 percent of people have exaggerated their income a lot of people want to be making more money than they are right now whether you're making the average a median salary for that area or whether you're working at McDonald's people or you could be a CEO people always just want to put their higher income I'm gonna talk about some Neil's comment right here it's important to be honest with income but it's totally okay to include alternative income sources in my case scholarships qualifies income I like that so I list that under the non-taxable field I've passed income verification which chase and spoke with Amex representatives to confirm that alternative indirect income like that are totally okay and even incurs to be included I really like that Sanel congratulations on your scholarships as well I think that's an awesome comment right there okay me and myung says I don't lie lying is a sin I like that hundred percent but you're not technically lying if you're including different household incomes if you're including different assets that you know you own if you include different dividend returns and if you include different things that justify that income that you put you're not technically lying I would just say this you guys have a way to justify for what you're putting down if you can do that you're completely fine sérgio right here has put a long thing I'll read this one just cuz he has a little badge next to his name to it this is the visual storyteller badge so if you share a lot of images or videos that provide value in the group you actually get this badge Sergio says I think we lied to better our outcome I'm sure there's an algorithm when applying for credit cards assuming that they do they usually have a set limit when we are inputting that info down so they make sure it's not too low where they have to deny it automatically or too much in case they need to verify for where it's true very awesome point and it is true there is an algorithm going to work at this if you're too low 100% you're gonna get automatically denied if you're too high if you say you make a million dollars you're pushing it and they're gonna ask for some type of proof but here's the algorithm you guys it is the median income salary for that general demographic area if you live in New York City where the average income is sixty to eighty thousand dollars compared to like the bomb the hills of Kentucky or Alabama where the average income salary there is like twenty five or thirty thousand dollars that's where the algorithm is going to play now this is not confirmed but this is what has been told in the reddit community and in the my FICO forums if you guys do a little bit of research it is the median income for your area I live in Montgomery County towards the Rockville area right outside of DC in my city particular the median household income just for this area is about a hundred thousand dollars fifteen minutes down the road to a more poverty-stricken area the median income over there is like fifty sixty thousand dollars so it depends on where you are but I believe the way this works is that when these credit card issuers ask for your zip code and your address the algorithm can calculate where you live and then what that income should be around that area and if you're really low if you're not even close to the median salary then they're just gonna deny you anyway but if you are low what you guys can always do just ring them up and tell them your situation hey my name is Brian you know I got this new YouTube channel coming up I'm not making any bread right now but maybe in a year or two I will be so if you have this opportunity please let me get this credit card that's an option you know that's something I could say Brodie Bell says try to keep it closed or round up or down with a couple thousand dollars or so that's completely fine in my opinion Mathew up here he says I don't lie on apps completely fine Casey right here he says would you consider lying if I use last year's income I had a great income consulting last few years but quit that business a couple months ago to take some time off to travel so Casey to answer your question it is completely fine to use your previous income I think people often neglect there are a lot of huge ups and downs for me personally like I said I was making five to six thousand dollars just two years ago and my income has drastically changed since that happened and maybe next year all my businesses fail people stop watching my YouTube videos my my digital marketing agency crashes and I'm at zero dollars a lot of things happen and we don't even know when the next recession is gonna happen it is definitely okay and it's not suspicious at all if your income is changing but I wouldn't say apply for a chase Inc business cash card right now and have an income of $80,000 and then your next card like a month later it's down to like $40,000 or half of that that raises questions especially when you're applying within that same credit card issuer so this is what I recommend if your last year's income is different from this year's that's completely fine because for the most part you should have your tax returns to verify that if you ever do get a financial review but people need to understand this financial reviews do not happen that often if you guys stretch your income just a little bit they're not gonna throw your butt in jail that's not how it works they're not gonna find you like that just like I stated in the beginning of the video if you're not sure about what your income is and you're really making a little bit of money think about what your projected to make if you can secure a job look at that salary for that job you're intending to get if you're a student and also take into consideration your parents household income if you still live with them on top of all of that you guys make sure you look at that median income salary I wouldn't go less than $20,000 of what that median is for that area in my opinion but I have gotten approved for credit cards when I had an income of $5,000 of $10,000 and I would actually put on my applications like 10 to $15,000 and I definitely should not have gotten accepted but this is dependent on what card you're going for if I'm trying to get the American Express Platinum Card I'm making $5,000 that makes no sense obviously they're gonna deny you because you're not gonna have enough money to either pay that annual fee or to even reap the benefits it just doesn't add up but if I'm going for a subprime card like City Capital One or Discover then hell yeah that makes sense it's okay not to have that much money right now it's okay to not have the income where you're expected to have but take into consideration all the options you guys have okay guys that was really this video that was wrapping it up if you guys want to add on to this conversation even more just join our Facebook group and just search any of the keywords that you saw for this thread you guys we are called the credit society just put that in on Facebook we should be that first result coming up but that is it I'm not gonna go over each one of the comments that I saw in here this video just be too long but I hope you guys learned a couple things from me I hope you guys learned a couple things to the community and everyone who's in putting things and putting things into the Facebook group and commenting on my videos and the people that always comment on my videos first jig me uh I don't know I don't know how I say your name Jimmy Jigme Jennifer Smith and a couple other guys black ham TV there's always this one guy that does 100 emoji on my thing with the Flex emoji shout-out to you thank you guys so much for help supporting this channel if you guys do want to support this channel even further you guys can check the affiliate links listed down in the description below we also have different resources on our blogs and on the Facebook group as well but if you guys enjoy this video make sure you guys smash that like button right now I want to see this video get 500 likes it's probably not gonna happen but let me see if it gets 500 likes as I've never gotten that many likes on a video so let's shoot for some goals let's keep killing you guys and if you enjoyed this video I'll see you guys on the next one stay tuned for the next video peace [Music] [Music] me date the husband whenever it's more void after that

Channel: Brian Jung

Views: 178,674

Rating: 4.8676105 out of 5

Keywords: Credit card income, brian jung credit, credit card income, brian jung, WHAT TO PUT ON CREDIT CARD INCOME, credit card, credit card application rules, credit card application declined, american express, chase, discover, credit card for low income, credit card approval, ask sebby, credit shifu, credit card without income proof, credit card acceptance, credit card application, credit card rules, credit card debt, credit card approval tips, credit card approval for bad credit

Id: YXdHP7Pzxws

Length: 18min 41sec (1121 seconds)

Published: Thu Jul 25 2019