Sgt.Sausage wrote:
- quote -

Sgt, I am still waiting for you to provide a citation to support this
statement. I assume that you can't support it since I haven't yet seen
one. Therefore, since creditors don't need your permission to report
information to the CRAs, it is possible that they can report income
information which is given to them without your authorization, just
like they do with all the other information that they report.

- quote -

Ummm.... you don't think me TELLING you how much I make captures my
income? Geez. When you provide your income information to creditors,
they have it because YOU GAVE IT TO THEM.

- quote -

You say that they do need your authorization, but you have provided no
citation to support your statement. The fact that you say they do is
not enough.

Do their contracts explicitly say that they have authorization to
report your payment history to the CRAs? They might. But its also
possible that they don't say that since they don't need your
authorization. If you tell me that you specifically remember reading a
contractual provision that said that, I will believe you, but you
haven't said that.

<emailforian[at]gmail.com> wrote in message
news:1160775366.990893.189980[at]b28g2000cwb.googlegroups.com...
- quote -

Uhhh ... yeah, dude, they do.

You know that thing you sign -- you know, the *contract* you
sign when you're applying for the credit? It explicitely states
what they can and can't do.

- quote -

Oh. I see you know about these mysterious things they call
Contracts. Y'all (the rest of the group) have heard me harp on
it before. If you don't actually *read* what you sign -- each
and every line, every attachment, addendum, exhibit -- if you
don't read it, then you get what's coming to you and you have
no legitimate complaints. Good luck on that.

***

The only accurate measure of "higher income" is your IRS
forms. Nothing else captures your true "income" in any
sort of official capacity.

I may have, on occasion, had to produce tax forms for various
loans, and/or lines of credit, but I have never ... NEVER ...
given authorization for anyone to report that information to
anyone, not even the credit reporting agencies.

And I do read the contracts.

The credit reporting agencies simply have no way to
measure "income". The IRS does.

I'm pretty sure that income does not affect your credit score. The
only way income can have any effect on your credit score is because it
enables you to either take care of bills quickly and efficiently, or it
hinders you from making your payments ontime and therefore hurts your
score in many different ways. However, "John" and "Gary" in essence
should have the same credit score if they have excellent credit.

I watch Suze Orman all the time. She's on MSNBC on Saturday nights at
about 9p.m. eastern time and she has a lot of good financial
information. You could also go to her website www.suzeorman.com. She
actually breaks down how the credit bureaus figure out your credit
score. They go by your credit history with current credit cards that
you have opened rotating accounts with, if you're making your payments
on time, if you've maxed out your credit cards, and also things like
bills in collections and unpaid accounts can hurt your credit score and
your FICO score. Check out Suze's website, there's a lot of good,
helpful information there.
wangchieh[at]wongfaye.com wrote:
- quote -

I'm pretty sure that income does not affect your credit score. The
only way income can have any effect on your credit score is because it
enables you to either take care of bills quickly and efficiently, or it
hinders you from making your payments ontime and therefore hurts your
score in many different ways. However, "John" and "Gary" in essence
should have the same credit score if they have excellent credit.

I watch Suze Orman all the time. She's on MSNBC on Saturday nights at
about 9p.m. eastern time and she has a lot of good financial
information. You could also go to her website www.suzeorman.com. She
actually breaks down how the credit bureaus figure out your credit
score. They go by your credit history with current credit cards that
you have opened rotating accounts with, if you're making your payments
on time, if you've maxed out your credit cards, and also things like
bills in collections and unpaid accounts can hurt your credit score and
your FICO score. Check out Suze's website, there's a lot of good,
helpful information there.
wangchieh[at]wongfaye.com wrote:
- quote -

Sgt.Sausage wrote:
- quote -

I don't know that creditors need your authorization to report
information to the credit agencies? Where is that written?

And even if they do, it may be buried in the fine print of the
documents that you sign to get the loan. I have yet to talk to anyone
who reads every line of every document they sign (even though they
should).

<emailforian[at]gmail.com> wrote in message
news:1160683659.300294.199220[at]i42g2000cwa.googlegroups.com...
- quote -

Well ... yeah. That's the *mortgage company* asking you
for your income (and supporting docs) that you are agreeing
to supply them.

My question still stands: How, exactly, other than obtaining your
private IRS tax forms would they [THE CREDIT REPORTING
AGENCIES -- NOT THE MORTGAGE COMPANY]
even begin to know your income.

- quote -

Not without your permission or authorization, which is not
a common request on anything I've ever signed with a
mortgage company.

- quote -

Again, not without your authorization.

- quote -

That's an easy one to answer: When you apply for a mortgage or a car
loan (and other types of loans), you are asked to provide your income.
Therefore, this information is available to lenders, who in turn report
to the credit reporting agencies. I am NOT saying that lenders always
or routinely report income to the credit reporting agencies (I don't
know one way or the other), but, that is one way that they would or
could know.

On Fri, 6 Oct 2006 18:35:44 -0500, flagsposters[at]gmail.com wrote:

- quote -

Yes, they do. Sometimes they ask for tax returns going two years back.
But keep in mind that different lenders have different priorities. Put
it this way: Income does not determine the FICO score, but lenders
consider other things besides that score, including income, in
deciding whether or not to approve a loan. More important usually is
the price of the house relative to your income and what other monthly
payments may be eating up your income.

flagsposters[at]gmail.com wrote:
- quote -

If you want the best rate, and you have a good FICO score, the answer is
yes, they should check. I bought and sold some properties, and
refinanced the house I am in now. In the house 10 years and on my 4th
mortgage. Each refi dropped the rate as well as the length of the
mortgage. Anyway, I have, at the ready, 3 years' tax returns, they
usually ask for two depending. Also two years of bank records, to show
where the money for the deposit came from. And last two pay stubs. They
may or may not ask your employer for 'verification'.

Given the anomaly of inverted yield curve, the 1 year adjustable would
be 5.00% (the 1 yr rate) + 2.75% (the common adder) = 7.75% full rate.
Anything lower is a teaser rate and would likely adjust up at the end of
the first year. Standard 30yr fixed are still in the low 6% range. Shoot
for no closing cost, no points. That way if rates drop, you can
re-finance to a lower rate. There's more room for rates to rise than
drop though, so I do recommend staying fixed.
If your mortgage payment is more than 28% of your monthly gross, and/or
your total monthly payments are over 36%, you may not qualify, or you
may get offered a higher rate. I'll get off my soapbox now.

JOETAXPAYER.COM

Don wrote:
- quote -

Do lenders check your income when you apply for a home loan? First time
home buyer, starting to make preparations. Thanks.

On Wed, 4 Oct 2006 16:13:45 -0500, wangchieh[at]wongfaye.com wrote:

- quote -

That is an interesting question. It can be interpreted in different
ways. In your example, the answer is "No," provided particular lenders
did not fiddle with the scores in some way for their own purposes.
However, if you randomly selected 1000 people from the general
population, you would find that people with higher incomes would tend
to have higher credit scores. For one particular person, income would
not be an added factor in calculating the score from the numbers
available. But income would be a strong influence in determining the
numbers in the first place, that is, what one's credit history
happened to be, whether or not previous loans were repaid on time, and
so on.

<wangchieh[at]wongfaye.com> wrote in message
news:1159995463.736007.231430[at]i3g2000cwc.googlegroups.com...
- quote -

I don't think they'd even know income. How, exactly, other
than obtaining your private IRS tax forms, would they even
begin to know your income? Unless you release your tax
forms to the credit reporting agencies, there's no way they'd
even have a way to determine your income. Have you given
them your tax forms lately?

wangchieh[at]wongfaye.com wrote:

- quote -

I'm thinking, not.
See http://www.bankrate.com/brm/fico/calc.asp and you'll find they never
ask income. But FICO alone isn't the end, so, yes to your question, they
may have the same score, and FICO impacts the rate they'll be offered,
but the amount they'll get qualified to borrow will be based more on income.

JOE

Income will have little to no effect on credit score.
http://en.wikipedia.org/wiki/Credit_score is as good a
discussion as any I have seen.

Hello All,

Does your income have an affect on your credit score? Or does only
your credit behavior affect your credit score?


For example:

John makes $120,000 a year, has an excellent credit history, and has a
score of 820.

Gary makes $45,000 a year, has the EXACT same excellent credit history
as John. Can Gary get an 820 credit score too? Or will his score be
lower because his income is less?



Thanks.