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Pennygem
  • 6/10/2024
Hint: Don't do it.

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Learning
Transcript
00:00When applying for a credit card, lenders ask about your income to determine your credit
00:05limit.
00:06What's strange is card issuers don't usually require proof of income.
00:10Credit expert John Olsheimer told Yahoo Finance that they typically take your word for it.
00:15So what happens if you knowingly lie about your income on a credit card application?
00:19Well, you're committing a crime called loan application fraud, and it comes with hefty
00:23penalties.
00:24If you're caught and convicted, you could face up to $1 million in fines and 30 years
00:29of prison.
00:30Banks are required by law to decide how much debt customers take on and if they can pay
00:35it off, which is why they ask about income and check your credit score.
00:38However, lenders typically only dig in deep to verify income for larger loans and mortgages,
00:44or if you start to fall behind on payments or max out credit cards after the fact.
00:49While lenders typically only notice large discrepancies, they sometimes use methods
00:53like income prediction modeling or random income inquiries during the application process.
00:58And if they do figure out you lied, Olsheimer says all they need to do is call the authorities.
01:03So don't do it.
01:04Report your actual income.

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