New card applications?
 

For new personal Visa and Master : Most of the banks / creditors now require both tax return and W-2 since 2/10?

Which card & which company are you asking about? All of them? I've not been asked to submit either. I was, however, asked about my 1099 income when I was appealing a rejection today. CSR didn't ask to see my Schedule C but wanted me to read the figures from it (Chase). Things have changed, heh?

Very few of the major banks (Chase, BofA, etc) will ask for physical proof of income. When you talk to them, they will ask you about income, etc, but its rare for them to have you fax anything in.

Almost all credit unions will want proof.

In both cases, about 90% of the time most underwriters are happy with your last two paystubs. With other 10%, they will want more. That could be w2's or 1040's, or 1099s.

For business card accounts, if they want proof, they will want 1040's.

Amex, especially if you're part of a "financial Review" will want the 4506-T from the IRS, which is a transcript of your last tax return.

I believe best is referring to new rules that will require credit-card companies to consider an applicant's income or assets and current debts before approving credit. This WSJ article suggests the requirement can be met by using an income estimate provided by credit bureaus

http://online.wsj.com/article/SB1000...904801106.html

"Tuesday, the Federal Reserve issued its final rules related to last year's Credit Card Act, which, among other things, will require credit-card companies to consider an applicant's income or assets and current debts before approving credit. To provide flexibility, however, the Fed said that issuers can use "a reasonable estimate" of income or assets based on "statistically sound models.""

When did they not consider income and assets before issuing credit? :confused: Or is this the elimination of "pre-approved" or "pre-screened" offers based on a soft pull of your credit report?

As far as the bureaus adding their estimates, I took that as another cash grab. Another 'product offering' to lenders. :rolleyes:

Either way, i don't really care. I've done most of my borrowing with credit unions, so faxing in paystubs is SOP for me...

Been banking with Wells Fargo for over 20 years, and maintain mid-six-figure balances with them at all times. Last year my bank manager offered a new Visa-branded card they introduced, and processed the application personally. I was contacted by their credit department and asked to fax over 2 years of 1040s (this was last year). My bank manager called them to complain, and explained my income, assets and history with the bank; he was turned down. They insisted on the 1040s for 2007 and 2008.

Out of principle, I didn't send it to them and went to another issuer (offering the same type of card) with whom I have no history nor account. Approved immediately.

And by the way - WF then sent me another card (not the type I applied for) with a low-five-figure limit, and wrote that if I sent them my proof of income they would raise it. I shredded the letter (and the card).

I suppose it was the last decade or more when card issuers accepted self declared "household" income and didn't even ask about assets aside from "Do you own a home, rent, live with parents, other?"

IMHO, nope. Card issuers have been accepting stated income card apps for many more than ten years. Indeed, a main basis of credit reporting system is self declared income as transmitted via the merchant reporters.

I have had a LOT of credit cards and have NEVER been asked for documentation of claimed income.

The system is insane, but, the insanity is not a new development. :D

By the way, Chase is even wackier than many of the others. :td:

Agreed. Chase (as recently as last year) would give you a card without even a SSN ! (They would of course ask for one, and say it's required, but if you insisted and were patient enough on the phone, they capitulated)...

Amex
 

Just got the same call from Amex. New card issued about week ago. They said until the review is done all transactions are blocked. So they want tax returns from business (directly from IRS).

Thank you all : re Visa and Master: since new law in 2/2010: any of them for non business account have started insisting on hard proof of income?

Insisting? No. YMMV.

It's my understanding the CARD act doesn't address business cards so whether issuers choose to play by the new consumer rules on business cards or not is, as mentioned above, a YMMV situation.