Proof of income for CC application

Curious_Case

Does anyone know if this would work, please let me know -

I'm hoping to get a new CC with a modest limit of €4,000 and Bank Statements are accepted as proof of earnings.

I'm thinking of opening a new current account, with An Post for instance, and feeding it weekly amounts of say €400 transferred from my existing bank account for a month or two (one of the big banks).

Would my An Post statements then suffice as proof of earnings ??

Atlantic Dawn

Won't work as it will not be proof of earnings as source will be one of your own accounts. They will want source to be an employer.

Curious_Case

Atlantic Dawn wrote: »

Won't work as it will not be proof of earnings as source will be one of your own accounts. They will want source to be an employer.

Thanks for replying

I was thinking of using the word "drawings" as a reference on each transfer because I'm self-employed.

The original source would be comprised of many different online transfers and cash & cheque lodgments to my business account.

Can't use business account statements as my income is simply not steady enough.

Irishphotodesk

Curious_Case wrote: »

Thanks for replying

I was thinking of using the word "drawings" as a reference on each transfer because I'm self-employed.

The original source would be comprised of many different online transfers and cash & cheque lodgments to my business account.

Can't use business account statements as my income is simply not steady enough.

If you are self employed you can use your end of year accounts to show your earnings.

TheBeach

Meteorite58 wrote:

Time to kick off a thread on the potential for snowfall over the weekend coming.

Yes, could you use your notice of assessment for the end of the year. This will have your gross on it.

Curious_Case

TheBeach wrote: »

Yes, could you use your notice of assessment for the end of the year. This will have your gross on it.

Unfortunately, although my assessment figures are accurate, they would simply prove that my income is a little low for new CC application success.

(I'm well within my current credit limits but would still like to raise them as a future proofing exercise)

wonski

Being honest the reason the card issuer is looking for proof of earnings is to make sure you won't get stuck with card you can't afford to pay off.

4k limit is not modest. It can cost you 60-70 euro a month just to pay off interest.

I have 1k limit and I would call it modest.

They want to see your income, not your own transfers made to the account really.

Sheep Shagger

Payslips if you are PAYE

Something from Revenue if you are self employed.

L1011

A banks idea of "modest" would be the 800-850 provided on a student card; 4k is in to Platinum Card territory and will almost certainly require proof of income equivalent to 40k+

Curious_Case

L1011 wrote: »

A banks idea of "modest" would be the 800-850 provided on a student card; 4k is in to Platinum Card territory and will almost certainly require proof of income equivalent to 40k+

You may be sceptical of the following:

My existing CC, which I've had for over 20 years, had it's limit raised from €1,000 to €8,000 over the years without me even asking.

I never even applied for a CC, it was offered on a pre-approved basis. ( I know, things are different now! ).

A high ceiling can be useful as bridging finance if preparing to sell a property or awaiting an insurance payment for instance.

All things being equal, one's credit rating is improving by having CC's limit raised without raising the balance.

L1011

Banks being allowed increase limits without request was banned over a decade ago. They are vastly more cautious now and hence you will be required to show a significant income to get a significant limit, and applying for a second card with a significant limit when you already have one will be red flagged.

Also, that is not how Irish credit ratings are calculated - this is not the US. The CCR takes in actual payment history not guesswork.

Curious_Case

L1011 wrote: »

Banks being allowed increase limits without request was banned over a decade ago. They are vastly more cautious now and hence you will be required to show a significant income to get a significant limit, and applying for a second card with a significant limit when you already have one will be red flagged.

Also, that is not how Irish credit ratings are calculated - this is not the US. The CCR takes in actual payment history not guesswork.

Thanks for the heads-up re: flagging of application for more credit - I had overlooked that aspect.
All of my limit increases were indeed accrued in the early years.
I take your point about the US too, I may have been reading info. on US sites.

My situation is:
Excellent payment record,
Balance of CC is at 25% of limit,
BUT current income would need to be exaggerated in order to qualify for additional credit.

L1011

Well, buntly - you're not going to get it then. There is only one form of proof of income a bank will accept from self employed which is your Revenue docs. Doctor that and its an exceptionally serious fraud offence!

Jim_Hodge

Curious_Case wrote: »

Thanks for the heads-up re: flagging of application for more credit - I had overlooked that aspect.
All of my limit increases were indeed accrued in the early years.
I take your point about the US too, I may have been reading info. on US sites.

My situation is:
Excellent payment record,
Balance of CC is at 25% of limit,
BUT current income would need to be exaggerated in order to qualify for additional credit.

There's another word for exaggerated income in this context - fraud.

Victor

Curious_Case, it sounds like things are tight and you might be intending to use the credit car to cover day to day expenses. This is not a good idea, not least because credit card borrowing can be expensive.

If you genuinely expect to receive money from sale of property or insurance, investigating other borrowing or using savings would be a better idea.

Also, if borrowing, have the business do the borrowing, not your personal account.

Sheep Shagger

If your balance on your existing card is 25% of limit, you shouldn't really be getting more credit.

Credit card interest is expensive, you should be able to demonstrate can pay your card off in full on a regular basis before getting a higher limit. A new card provider will want to see current statements too, it isn't all about income.

Have platinum BOI card with a €6k limit, never gone anywhere near limit and clear it monthly.

Curious_Case

Victor wrote: »

Curious_Case, it sounds like things are tight and you might be intending to use the credit car to cover day to day expenses. This is not a good idea, not least because credit card borrowing can be expensive.

If you genuinely expect to receive money from sale of property or insurance, investigating other borrowing or using savings would be a better idea.

Also, if borrowing, have the business do the borrowing, not your personal account.

Thanks Victor,

Luckily things are ok, I'm just trying to take full advantage of the situation.

Your advice is spot on !!

Curious_Case

Sheep Shagger wrote: »

If your balance on your existing card is 25% of limit, you shouldn't really be getting more credit.

Credit card interest is expensive, you should be able to demonstrate can pay your card off in full on a regular basis before getting a higher limit. A new card provider will want to see current statements too, it isn't all about income.

Have platinum BOI card with a €6k limit, never gone anywhere near limit and clear it monthly.

Thanks SS,

I agree, sound reasoning! - I was just trying to increase my access to credit at a time when it wasn't actually needed.