Is It Illegal To Lie On A Credit Card Application?
Why you should never lie on a credit card application and how to improve your chances of having one approved, even if previously denied.
If you are worried about not getting the credit card loan you have applied for you might be tempted to twist the truth a little bit to make your application more appealing. However, doing this could get you blacklisted by all legitimate loan companies and banks. It is not worth the risk.
Today, we are going to talk about credit card applications, what they are and what information you need to give to apply for one. We will also be talking about why it is illegal to lie on one of these applications and what things you can do to legally improve your chances of getting a credit card loan approved.
What Is A Credit Card Application?
Credit Cards are a form of credit loan that allows the borrower to borrow a certain amount of money each month. They are expected to pay this money back monthly, every 3 months, or every 6 months.
Using a credit card and then paying off your debts can be an easy way to improve your credit score. Failing to pay off your loans can result in your credit score dropping.
A credit card application can be handed to a bank, lender, or larger store. This application will allow the lender to assess whether you are safe to lend money to.
What Information Will You Need To Give During A Credit Card Application?
When you are applying for a credit card loan you will be asked for a selection of information. The lender will check this information against pre-existing information about you to check that you are being honest about who you are.
You will be asked for the following information:
- Your home address and your previous addresses for the past five years
- Your current employment status, as well as your employment history
- If you have any outstanding loans and with whom
- They will also check your credit history and current credit score
- Your identity (you may need to provide some identification)
- Your social security number
Why Would Someone Be Tempted To Lie On A Credit Card Application?
- There are many reasons why someone might be tempted to lie on their credit card application.
- They may be desperate for the money and want it as soon as possible.
- They may have no credit history and have been rejected by another company because of this.
- They may have a bad credit history and are trying to cover that up.
- They may be trying to commit fraud by using a name, job, or social security number that is not their own.
- They may be trying to set up a secret credit card so that the other members of their family don’t know about it.
What Happens If You Get Caught Lying On A Credit Card Application?
Lying on a credit card application is fraud and is illegal. The same goes for lying on any other type of loan application. Doing this can get you in a huge amount of trouble.
Lying on a loan application can lead to prosecution by the police both locally and federally. If you lie on a loan application you could be facing jail time and will definitely be facing a pretty hefty fine.
You should also be aware that if you get caught lying on a loan application, the likelihood is that you will never be approved for a loan again. You will end up blacklisted by all legitimate lenders.
4 Things You Can Do To Make Your Next Credit Card Application More Likely To Be Approved
If you are looking to get a credit card, but are worried that your application will get rejected or you have already had a loan rejected – what should you do?
Well, here are 4 things that you can do that are better than lying on your credit card application:
#1 – Take Out A Phone Contract
If you cannot get a credit card because you have no credit score then the best thing you can do is take out a phone contract.
A lot of young people experience this problem, but by having a phone contract in your name and consistently making the payments – you can build yourself up a good enough credit score to successfully apply for a credit card.
#2 – Improve Your Credit Score
If you are having your credit card loans rejected because you have a poor credit score, then the best thing you can do is improve it.
Many people think this is difficult, but once you know what your score is you will be able to make a plan to improve it. You can do this by paying off debts, paying your bills on time, successfully applying for loans, and by putting money in the right kind of savings account.
#3 – Consolidate Your Loans
If your credit score is dipping because you have a lot of loans out then you should consider consolidating your loans. You can do this by applying for a consolidation loan – this loan will be used to pay off all your other loans.
It will be better for most people with multiple loans because they will end up making smaller monthly payments and less interest on those monthly payments.
#4 – Stop Applying For Loans
Our final tip is to stop applying for loans until you have boosted your credit score.
If you apply for a loan but fail to get it you will damage your credit score. To increase your chances of getting a loan, you should be very selective about the loans you apply for.
When you do start applying for loans again, you should make the most of pre-checks. Many loan companies now offer these, they will allow you to see if you are eligible for a loan before you apply for it. This will prevent you from damaging your credit score if you fail to meet the criteria.