Credit card application - income verification?

[HI Bill]

But, really, AMEX? I have paid my bills on time and in full for decades. How could you miss that?

They miss that because credit card companies measure how much credit you have available, and you much you use. They don't care about assets, and any responsible spending, other than making payments on time. Those who pay off bills in full every month don't get any extra gold stars, and neither do the multi-millionares.

THEY CARE ABOUT CREDIT USE:

1) Number of open accounts;
2) Average length that accounts have been open;
3) Account diversity (home mortgage, revolving credit, car loans, etc.);
4) Utilization (% of credit limit used);
5) payment history; and
6) number of recent credit inquiries

 

[Another Reader]

They miss that because credit card companies measure how much credit you have available, and you much you use. They don't care about assets, and any responsible spending, other than making payments on time. Those who pay off bills in full every month don't get any extra gold stars, and neither do the multi-millionares.

THEY CARE ABOUT CREDIT USE:

1) Number of open accounts;
2) Average length that accounts have been open;
3) Account diversity (home mortgage, revolving credit, car loans, etc.);
4) Utilization (% of credit limit used);
5) payment history; and
6) number of recent credit inquiries

It's implicit because the length of credit and the history of on-time payments make up a large part of the credit score. No late payments for decades and a credit history equally long should convince most card issuers to move forward.

These companies do distinguish between transactors and revolvers and market accordingly. I'm a transactor, which Amex historically preferred.

 

[HI Bill]

No late payments for decades and a credit history equally long should convince most card issuers to move forward.

These companies do distinguish between transactors and revolvers and market accordingly. I'm a transactor, which Amex historically preferred.

My mom once had a better credit score than I did (she was in her 70s, me in my 40s). She had multiple lines of credit, and used every one of them, maintaining balances on each line, and almost never making a late payment.

I, on the other hand, had few lines of credit, used them sparingly, paid off my bills on time, and did not buy things on installment plans. I thought it was grossly unfair that she had a better score than I, until I realized that they care about how you use credit, more than how responsible you are with money.

If you had five types of credit and made payements on time to each of them, you'd likely end up with a perfect or close to perfect score. Years later, I eclipsed her, despite fewer lines of credit, mostly because I never missed a payment.

AMEX used to work on a different model (and required payment in full every month). Now, I believe most of their business is credit card based.

 

[Another Reader]

My mom once had a better credit score than I did (she was in her 70s, me in my 40s). She had multiple lines of credit, and used every one of them, maintaining balances on each line, and almost never making a late payment.

I, on the other hand, had few lines of credit, used them sparingly, paid off my bills on time, and did not buy things on installment plans. I thought it was grossly unfair that she had a better score than I, until I realized that they care about how you use credit, more than how responsible you are with money.

If you had five types of credit and made payements on time to each of them, you'd likely end up with a perfect or close to perfect score. Years later, I eclipsed her, despite fewer lines of credit, mostly because I never missed a payment.

AMEX used to work on a different model (and required payment in full every month). Now, I believe most of their business is credit card based.

I'm close to the max on credit score, often at the max. Have been for years. I use maybe three or four cards. Usually I let one or two close with a small balance and pay them off once the bill exists. I have no clue what offended Amex's algorithm. Oh, well, they did not get the transaction fees and Costco lost some business.

 

[audreyh1]

Fidelity recently sent me a letter to announce that because of my “exemplary use” of their VISA credit card they were raising our credit limit several thousand dollars (~20%).

Wow - exemplary!

Well, we have charged quite a bit this year. Always pay it off though.

 

[braumeister]

Seems odd. I got the First Tech card over a year ago and didn’t have to provide anything like that. I’ve been retired a long time so maybe they figured it was a lost cause. [emoji1]

 

[Luvdogs]

My daughter is 24, has a 820 credit score even though she has had her first credit card (Amazon) less than a year. She just started her first career-job about a year ago-average new college grad salary--nothing extravagant.

Her initial credit limit was $1000 and she recently asked for an increase so it is now 2K.

But what is funny is that her credit report also shows another cc-- one I have had since 1995 with a $25K limit. She has been an authorized user but I'm almost certain that her SSN was never attached to it.

So she got her first credit card at age two according to her credit report!

 

[SecondCor521]

But what is funny is that her credit report also shows another cc-- one I have had since 1995 with a $25K limit. She has been an authorized user but I'm almost certain that her SSN was never attached to it.

So she got her first credit card at age two according to her credit report!

Usually credit card companies ask for SSN when adding an AU. But even if they did not, if your daughter shares your last name and address, that may be enough to match the CC to her credit file.

I had the same thing happen to me, and I responsibly enjoyed the higher credit score. But in my case it was one of my Dad's store cards and I was age 4. He and I also share a first name, so in that situation they're even more likely to match the CC to my credit file.

 

[rodi]

That would make me look for another chip and pin card.

I use the pen fed reward card which worked fine as chip and pin in Europe. The are lots of non vet ways to join. (Penfed is mainly for military.). We also have our untapped HELOC with them.

 

[FIREd_2015]

I did an online request for a credit limit increase on my Fidelity 2% Visa card a couple of months ago and it was declined because they said they didn't have a copy of my tax return and wanted me to send one in. I responded by cancelling my Fidelity 1.5% Visa card which I wasn't using anyway.

A couple of weeks ago I got a noticed congratulating me that my credit limit on my Fidelity 2% Visa card was increased. I hadn't done anything other than cancel the Fidelity 1.5% Visa card since the denial. I guess they must have had a change of heart.

I think you should wait them out and try again in a couple of months. Maybe they'll have a change of heart.

 

[Sojourner]

OP here. Thought I would give a quick update on how this all turned out.

I decided not to contact First Tech about the income verification request and just see what happened. They sent me a few further emails, one of which was a link to the credit card agreement that I e-signed. All subsequent emails (after the "please verify your income by sending us tax returns" one) seemed to imply that my application had been approved and my account was being opened with no issues.

Yesterday, the First Tech Choice credit card showed up in my mailbox, and today I called the 800 number to activate the card. No issues, no problems. So it seems like that one email I received immediately after applying for the card asking for my tax returns was some sort of weird mistake or glitch in the system. Certainly glad I didn't waste time calling or chatting with FT customer support about it. Anyway, now I'm all set for my upcoming trip to Europe with a true chip-and-PIN card!

 

[Bamaman]

With an 820 FICO score, income verification should not be required. Go to a more reasonable company.

For travel, I use the Capital One Visa that gives me 100% currency valuation and twice as many points that can be used for travel. It pays for.one round trip airfare yearly.

 

[audreyh1]

OP here. Thought I would give a quick update on how this all turned out.

I decided not to contact First Tech about the income verification request and just see what happened. They sent me a few further emails, one of which was a link to the credit card agreement that I e-signed. All subsequent emails (after the "please verify your income by sending us tax returns" one) seemed to imply that my application had been approved and my account was being opened with no issues.

Yesterday, the First Tech Choice credit card showed up in my mailbox, and today I called the 800 number to activate the card. No issues, no problems. So it seems like that one email I received immediately after applying for the card asking for my tax returns was some sort of weird mistake or glitch in the system. Certainly glad I didn't waste time calling or chatting with FT customer support about it. Anyway, now I'm all set for my upcoming trip to Europe with a true chip-and-PIN card!

Good deal! Glad you didn't submit anything. Did they give you a reasonable credit limit?

 

[Sojourner]

Good deal! Glad you didn't submit anything. Did they give you a reasonable credit limit?

Yes, $20K. More than sufficient for my intended usage.

 

[marko]

We applied for a JetBlue (Barclays) card a few years ago mostly to get mileage.

We entered our income honestly on the application.

We got a personalized letter back saying that because we checked the "retired" box our "level of income claimed was not credible" (or something to that effect) for retired people and thus we were denied. No recourse, no request for proof.

Now we're with Delta American Express Platinum and were approved instantly online.

 

[audreyh1]

Yes, $20K. More than sufficient for my intended usage.

Oh yeah - that’s plenty.

 

[Koolau]

With an 820 FICO score, income verification should not be required. Go to a more reasonable company.

That's what I would have thought as well. Our last mortgage ca. 2010, we had similar score BUT only thing they wanted was income. Never heard of this with CC, but who knows. YMMV

 

[morriss003]

I recently applied for a First Tech "chip and PIN" credit card to use during an upcoming trip to Europe, based on positive reviews from many E-R.org members. I received an email stating that my application was approved, pending receipt of the "last 2 years of complete personal and business tax returns with all schedules." This struck me as highly unusual and something I'd be reluctant to do. My credit score is around 820, which I'd think would be high enough to warrant approval without an in-depth analysis of my recent tax returns to verify my income down to the penny. I always pay my credit card bills on time (most are set to auto pay) and my typical monthly CC spend is between $1,500 and $2,000.

I've never once been asked to provide tax returns for any credit card application--at least not that I can remember, and certainly not in the last 15 years--so I'm hesitant to email these documents to First Tech just to get a chip-and-PIN credit card.

Anyone else experience this kind of thing when applying for a credit card recently? If so, did you send in any requested tax return documents so your income could be verified?

My Capitol One Venture card is a chip or tap card with no transaction fees.

 

[pb4uski]

.... Anyway, now I'm all set for my upcoming trip to Europe with a true chip-and-PIN card!

I hope that they don't cancel your card mid-trip because you never responded to their requests for income verification.

 

[audreyh1]

They "tapped" my Costco VISA at Costco checkout the other day. Next time I'm going to try using ApplePay from my watch.

 

[indiajust]

Suggests that they are selling your credit profile. I would look elsewhere.