*Please note, we cannot give provide financial advice in relation to credit applications and credit scores. At Scotland Debt Solutions, we offer support to individuals managing personal debts over £5,000.
When credit card companies make a decision about you as a potential customer, they use the information on the application form to assess your credit-worthiness, and establish the most appropriate level of credit to offer.
This type of information includes your employment position, incomings and outgoings, and your previous history of debt repayment. They will view your credit file and other information to assess the risk you pose to them, and make a decision about whether to grant your application.
Why would you lie on the application?
The banks’ lending criteria has tightened in recent years, making it more difficult for consumers to borrow. If you have previously struggled to obtain a loan, or suspect that your current income level is not high enough to be granted a credit card, you may be tempted to lie on the application, but this is bad idea.
Lying on a credit card application is illegal, and you could face prosecution for fraud if it comes to light at a later date, or you find yourself unable to keep up repayments. You are providing false information about your personal and financial situation, facts on which credit card providers rely on to make decisions that protect themselves from risk.
FAQs
What happens if you're caught lying on a credit card application? Lying on a credit card application can be a costly mistake, as it constitutes fraud and can result in up to $1 million in fines and/or 30 years in prison.
Do credit card applications verify income? ›
Card issuers sometimes ask you to verify your income, which you may be able to do by submitting copies of income-related documents, such as a tax return or pay stub.
Can you get in trouble for lying to get a credit card? ›
Lying on your credit card application might seem harmless. However, credit card application fraud is a fourth-degree offense that carries a $10,000 fine and potentially 18 months of jail time.
What happens if you make a mistake on a credit card application? ›
Consequences of Wrong Income on a Credit Card Application
Application denial: If the credit card issuer discovers incorrect income information during the verification process, they may deny your application. Lying on a credit card application is considered fraudulent and can result in immediate rejection.
Is it a crime to lie on a bank loan application? ›
Lying on a loan application may seem harmless, but even if a lender does not verify every piece of information, it is still considered fraud. While it can be tempting to misrepresent your income, employment or assets to seem more appealing to lenders, you could face serious consequences.
Is lying on an application illegal? ›
Resume puffery about things like skills or duties is generally not illegal in itself. But directly lying about credentials, background, past misconduct or other material facts can cross the line into fraud or misrepresentation. In most cases, small exaggerations won't get applicants into legal trouble.
Who checks credit card applications? ›
The card issuer will typically use the information to decide whether it will approve you for a credit card. The most obvious step with most credit cards is a credit check, usually with one of the three major credit bureaus. After all, the credit card company is extending you credit.
Do credit card applications check your employment? ›
Lenders typically ask for employer information on credit applications to help verify your identity but they're not obligated to report your job history to the credit bureaus.
What income to put on a credit card application? ›
Income to include on a credit card application
Income includes: Federal taxable wages (from your job) Tips. Self-employment income.
Do most credit card frauds get caught? ›
Some estimates say less than 1% of credit card fraud is actually caught, while others say it could be higher but is impossible to know.
Yes, it is indeed unlawful. Under federal and state law, fraudulently using someone else's credit card or making purchases with their account without permission could have serious legal consequences.
Is it illegal to deny someone a credit card if they apply for one? ›
The Equal Credit Opportunity Act makes it illegal for a creditor to discriminate in any aspect of credit transaction based on certain characteristics.
What happens if you exaggerate income on credit card application? ›
If your reported income on your credit card application was much higher than your actual income, then a court could prohibit you from discharging credit card debt in bankruptcy. In some cases, offenders have even received hefty fines and/or imprisonment.
Can I cancel a credit card application after applying? ›
When a hard inquiry has been run, it's too late to cancel your application, so you'll want to cancel as soon as possible before this occurs. If the application is still pending, you may be able to cancel it.
Do credit card companies check your bank account? ›
Credit card applications often ask if you have a savings or checking account because they're considered a positive indicator of creditworthiness. Bank accounts also establish a relationship with the card issuer or credit union, which is sometimes a prerequisite for approval.
Do credit card applications check employment? ›
Lenders typically ask for employer information on credit applications to help verify your identity but they're not obligated to report your job history to the credit bureaus.
What happens if you lie about a credit card dispute? ›
What happens if you falsely dispute a credit card charge? Purposely making a false dispute is punishable by law and could lead to fines or imprisonment.
Is it illegal to lie on credit dispute? ›
Offering false and misleading statements or written communication isn't just illegal for creditors and credit agencies. If you lie, chances are you will be prosecuted. Any documentation you provide as part of a dispute or question about an issue of credit must be accurate.
