When applying for a credit card, stating your income is critical—but not always straightforward. Whether you're 21 or older or under 21, here's how to navigate what counts as income and how to keep it within legal boundaries while maximizing your chances of approval.

What You Can State as Income if You’re 21 or Older

Thanks to the Credit Card Act of 2009 and a 2013 amendment, if you're 21+, you can include various forms of income to show your ability to pay, such as:

• Personal Income: Wages, salaries, freelance gigs, or contract work.
• Investment Income: Earnings from stocks, dividends, or rental properties.
• Household Income: Income from a spouse, partner, or other household members (like in multigenerational households).
• Non-Wage Income:
  • Trust fund payouts
  • Allowances or financial gifts
  • Scholarships and grants
  • Retirement or Social Security benefits
  • Unemployment compensation

💡 Pro Tip: You can include income from new jobs or offers if you have a "reasonable expectation of access." For example, a signed employment contract for an upcoming job works.

What You Can State as Income if You’re Under 21

For applicants between 18 and 20, the rules tighten up. You’ll need to provide independent income, such as:

• Personal income (e.g., wages, part-time jobs, or consistent allowances).
• Scholarships and grants intended for living expenses.
• Trust fund distributions.

Heads Up: Household or shared income isn’t eligible if you’re under 21—only what you personally earn or have access to counts.

Is Income Considered Net or Gross?

This can vary depending on the credit card issuer. Typically:

• Gross Income: Before taxes and deductions.
• Net Income: After taxes and deductions.

If the application doesn’t specify, assume they’re asking for gross income—the bigger number!

Examples of What Banks Allow as Income

Each credit card issuer interprets income flexibility differently. Here’s a quick breakdown:

Capital One Venture Card

• Job income (full-time, part-time, seasonal).
• Self-employment earnings.
• Shared income that regularly lands in your account.

Chase Sapphire Preferred

• Salaries or wages.
• Investment income.
• Any shared household income if you’re 21 or older.

Amex Blue Cash Preferred

• Wages or salaries.
• Rental income.
• Child support or alimony payments.

Citi Prestige

• Salary, interest, and dividends.
• Retirement benefits (like pensions or Social Security).

Can You Be Convicted for Misreporting Income?

Yes, but it’s uncommon. Misreporting income on a credit application can lead to legal consequences.

Case Study:

• Who: David P. Gaylord, Rochester, NY
• What: Misreported income to secure credit lines.
• Outcome: Time served, supervised release, and $46,914 restitution.

Honesty is the best policy when filling out credit card applications!

FAQs

Can unemployment count as income?

Yes! Unemployment benefits are considered income, as are other forms of government assistance.

Can students with no income qualify for a credit card?

Yes, many student credit cards are available, but you’ll need independent income to qualify.

Do banks require proof of income?

Not always. Most issuers don’t verify income upfront, but they may ask for documentation if something doesn’t add up.

Final Thought

Your income is more than just your paycheck—it’s a tool to unlock financial perks and credit-building opportunities. Be thorough, be honest, and remember: every dollar you can legally count as income is one step closer to approval!