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credit card application(bank balance)

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abcde

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in the credit card application form..
it asks you for your balance in your bank account..
is it important to provide the exact figure?
because the balance can change from day to day... if you have direct debit... or it might increase. if your earning interest from it..
is it something they check closely to make sure you provide the amount is correct?
will it become a false declaration. if the amount you write is not the exact amount in your account while they do your credit check?
 

oz_mark

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I think it is just used as an assessment of your assets. I have only ever provided a ball park figure - as you say it does go up and down.

Really, it is no different to trying to give an estimate of the value of a house. Without actually selling it, you cannot be 100% accurate.
 

JohnK

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abcde said:
is it important to provide the exact figure?
because the balance can change from day to day...
As far as I know they have never checked.
 

Sheriff

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in the credit card application form..
it asks you for your balance in your bank account..
is it important to provide the exact figure?
because the balance can change from day to day... if you have direct debit... or it might increase. if your earning interest from it..
is it something they check closely to make sure you provide the amount is correct?
will it become a false declaration. if the amount you write is not the exact amount in your account while they do your credit check?

No, it’s not important to provide an exact figure, but it certainly wouldn’t harm your credit application, especially if they decided to check the accuracy of the information you provided and found it to be accurate rather than an estimate.

As you rightly point out, bank account balances change from day to day, but what’s important is that all the information you provide on the form is true and correct at the time the declaration is made, not at the time they do their credit check. So if the balance of your account has changed since the credit application this will not lead to a false declaration. A false declaration is when you deliberately provide untrue and incorrect information.

Regards,
Sheriff
 
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markis10

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Sheriff said:
So if the balance of your account has changed since the credit application this will not lead to a false declaration. A false declaration is when you deliberately provide untrue and incorrect information.

Regards,
Sheriff

Its a criminal offence if you dont provide accurate information, and you can get jailed if you are caught, as a certain high flyer in Sydney did a few years ago.
 
M

MetroAir

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How then do they treat lines of credit?

eg LOC at $400k, $250k owing, access to $150k but no actual cash?
 

NYCguy

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MetroAir said:
How then do they treat lines of credit?

eg LOC at $400k, $250k owing, access to $150k but no actual cash?

I imagine that this would be considered a financial liability, rather than an asset. Any accountants who can comment?
 

burmans

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Depends what they ask for

I've done a fair bit of computer systems work with bank systems so can answer this one fairly easily, it depends what the ask for information on, limit or balance.

Usually with any such lending (credits cards, store cards and overdrafts fall into the same boat) banks regard this as committed funds, i.e. you can lend this money even if you aren't currently.

Generally limit is asked for but some banks take a more pragmatic approach and ask for balance or both. With both they can do an "as-now" assessment of your serviceablity and a "worst-case". End of the day you should provide what they have asked for and they will usually specifically ask for balance or minit.
 

NM

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I have always provided the exact balance of the account at the time of completing the application. And one of my accounts varies from almost zero (the day before payday) to several thousand dollars (on pay day). So whatever the balance is when I am completing the form is what gets written down - that way I cannot be accused of misleading anyone. However, if wanting to make the situation look better, I may be tempted to carefully choose the day on which I completed the application :wink: .
 
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