Apr 12, 2014, 10:10 am
AA,CH$,B* Etc (Help needed).
Apr 12, 2014, 9:32 am
#16
Join Date: Jan 2003
Location: California
Posts: 1,129
You did not MO so I'm sure your income needs to be $130k, not $30k or $50k from now on. I suggest you think about opening a business. You can't play this game effectively with stated income of $30k. High volume MS is dangerous without a big savings account in cash, but that's really a separate topic.
Let's say you have a business with your current W2 $30k side job. Your business has revenue of say $100k minus expenses which gives you net profit. You're supposed to tell them your net profit. For me, I don't know what my net profit is until I do my taxes in April of 2015. I have a vague idea only after I do quarterly bookkeeping. It could be $100k net profit if I spend nothing or $3k (or even negative) after a lot of expenses. I'll just write down my expected net revenue for the year since it's just April 2014. One of my clients quit giving me more work, my high end number is no longer realistic. But it's not impossible. I might buy a new cell phone and a nice macbook this year. Maybe not. I might start leasing a car for my business this year. Who knows... I always give the the highest number I can mention without giggling.
Write down $130k for every creditor except Amex. With Amex, it depends if you want to risk losing your accounts on a FR. I would suggest telling them the truth since they backdate their cards, which is good for the credit reports.
Be prepared to tell them how the business did last year (only if asked) while knowing that you won't actually show tax forms unless it is Amex. Understand basic accounting (revenue-expenses=profit) if needed to explain to the credit analyst.
One side note - I think efforts to get a much better paying job would be more effective than spending time on MS. $30k or even $50k is not a lot. You need to make more money even though you can live on $50k. For me, I had to change employers to get the raises I thought I deserved.
Let's say you have a business with your current W2 $30k side job. Your business has revenue of say $100k minus expenses which gives you net profit. You're supposed to tell them your net profit. For me, I don't know what my net profit is until I do my taxes in April of 2015. I have a vague idea only after I do quarterly bookkeeping. It could be $100k net profit if I spend nothing or $3k (or even negative) after a lot of expenses. I'll just write down my expected net revenue for the year since it's just April 2014. One of my clients quit giving me more work, my high end number is no longer realistic. But it's not impossible. I might buy a new cell phone and a nice macbook this year. Maybe not. I might start leasing a car for my business this year. Who knows... I always give the the highest number I can mention without giggling.
Write down $130k for every creditor except Amex. With Amex, it depends if you want to risk losing your accounts on a FR. I would suggest telling them the truth since they backdate their cards, which is good for the credit reports.
Be prepared to tell them how the business did last year (only if asked) while knowing that you won't actually show tax forms unless it is Amex. Understand basic accounting (revenue-expenses=profit) if needed to explain to the credit analyst.
One side note - I think efforts to get a much better paying job would be more effective than spending time on MS. $30k or even $50k is not a lot. You need to make more money even though you can live on $50k. For me, I had to change employers to get the raises I thought I deserved.
