Chase Requests Income Verification for Some Credit Card Applicants
When you apply for a new credit card, your credit score is an important factor. With a higher score you have better chances of being approved. But credit scores alone do not show the full picture. That is why you are asked for your income as well during the application process. Card issuers use income to calculate your debt-to-income ratio, which determines your ability to make payments.
As mentioned above, normally you are just asked to enter your income, and then the application is considered with the amount you enter. This makes for a quick and easy process. But now Chase seems to have started asking some customers for more information.
Income Verification
If you apply Chase credit card, there’s a chance that you will need to go through an income verification process. Recently, some applicants have been asked for additional documents to support the amount entered in the application.
One case was reported on r/CreditCards during a CFU application and Doctor of Credit also writes that some readers have reported the same thing. Chase has asked for pay stubs or W-2 forms for income verification, or in some cases just a verbal confirmation of the amount entered during the application.
This probably affects just a small fraction of applicants, and there could be different reasons for it. But with several reports coming in recent days, it might have something to do with the pandemic and Chase trying to limit its exposure. Chase also has been lowering credit limits for new and existing cardmembers in recent months.
Conclusion
You can include money from self employment, side jobs and even household income, besides your own salary, when applying for a new card. But it is not a good idea to overstate your income. If you provide false information on your application, you could be charged with credit card fraud.
Having to call recon and submitting extra documents in order to get a new credit card is something that most US customers are not used to. It takes time and effort. But hopefully this is just a couple of rare cases and nothing to worry about for most people.
Let us know if you have been asked for such information during recent Chase applications.
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I applied for the CSP and was declined. I called the reconsideration line and was told I would reduce and email in 48hrs. It was an email to upload pay stubs or W2. I supplied those today and waiting a decision. The rep who I talked to said he was going to approve. Just awaiting this verification process. Applied on Monday, received the email Wednesday.
Chase is the worst. Opened up a $450 a year credit with them, gave me a $24,000 credit line. 1 year ago 2-3 months into the pandemic they lowered my credit line to $8600 without even telling me why! I never missed a payment. When I called to inquire, they said I was late 1 day on a payment, I asked for prove of the late payment. 5 months later still waiting for the prove. Another cc closed my account without notice to me for not using it on 6 months. Tires plus lowered my credit line by $500 again no explanation has to why. My credit score is over 800. I believe the true reason behind it is because of the pandemic credit exposure to customers/ the bank. With over 12 million People out of work , the bank is scared customers are going to start racking up debt to pay there rent, electric, water, groceries, etc,… I have made up my mind on if I should just close out these cc. Possibly hurt my credit score.
As long as you keep your reported utilization around 1%, lower credit limits shouldn’t hurt your scores.
I take it you meant to say it is NOT (instead of now) a good time to overstate your income.