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Lying on credit card application Why are you lying?

What happens if you are caught lying?

Do lenders actually verify income and debt information?

The future of credit application verification

is the product of our partners who reward us. This can affect which products we write about and where and how they appear on our pages. However, this does not affect our evaluation. Our opinions are our own. Here is a list of our partners and how to monetize them.

As a child, you may have been accused Lying on credit card application  of the famous saying “Liars, liars, flaming pants!” When you (obviously) lie a little. As adults, we wouldn’t call ourselves drenched by others who rhyme. However, lying as an adult can have serious consequences, such as jail time or a seven-digit fine. What happens if I lie to my credit application?

Why are you lying?

Many credit applications require items such as annual income, rent or mortgage payments, employment status, and debt burden. You may get more credit if you claim you were hired when you falsely inflated your income, reduced your rent/mortgage payments, or neglected to report your full debt burden.

It may sound tempting, especially if you’re in financial trouble, but it’s illegal. Lenders offer lines of credit for a reason. Statistically, this is a reasonably timely amount to pay. If you think you should lie to your credit application, it’s probably because the loan amount doesn’t fit your budget.

What happens if you are caught lying?

It is fraudulent to knowingly report inaccurate data about your credit application. Credit fraud can result in fines of up to $1 million and/or imprisonment of up to 30 years. This little white lie has just turned into a whale. It’s not worth it.

Lying on credit card application Do lenders actually verify income and debt information?

Lenders usually find large discrepancies in reported information. For example, if you claim $10,000 of income on your tax return and $90,000 on your credit application, you are more likely to be caught than claiming $10,000 and $12,000, respectively.

Does it sound excessive? It’s not like that. In 2006, David Gaylord reported earnings of $12,488 to the Lying on credit card application IRS and between $90,000-$122,000 for multiple credit applications. Naturally, he was convicted of bank loan application fraud. He was never fined $1 million or sentenced to 30 years in prison but was fined almost $50,000 and was sentenced to imprisonment and supervision upon release.

The future of credit application verification

In response to credit fraud, Mimi Chong-Ph.D. A student at Western University in London – started catching liars about credit applications. Her paper, titled Catching Liars: Big Data and Credit Card Fraud, suggests ways to stop little lies that cost you big money in the bank.

Chong believes banks need to update their current system, which only detects big lies and not small but potentially harmful fibs. Banks can do this by hiring external auditors and training their staff to examine various application variables.

Lying on your credit application can be a costly mistake. Accurately report income, debt, employment status, and housing costs. Chances are your lender will not check these items. But it has all the rights, and if so you can pay a beaucoup buck or spend some time in a concrete room.

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