Whether or not you keep your personal information up to date for your credit card provider is your decision. Although it’s not always mandatory to update your income, it can be worth it in many cases.
Why is my credit card issuer asking for an income update?
Credit card issuers primarily use a combination of your income and credit score to determine your creditworthiness. If you make a relatively high income, they perceive that you will be able to repay any debt you incur, and will be more willing to offer you high spending limits. Alternatively, if you have a lower income, credit card issuers will offer you a proportionally lower credit card limit.
Am I required to update my income?
You are required to provide your income when you apply for a new card. Once you’re approved for the card, updating your income is voluntary. Typically, there are no repercussions if you don’t update your income.
But if your account is flagged for a review, not updating your income could affect your account.
Should I update my income for my credit card issuer?
If your income has increased since you first got the card, it can be beneficial to update the information for a potential credit limit increase. However, if your income has dropped, reporting your income may cause your card provider to lower your credit limit.
Pros and cons of updating your income
You may get a higher credit limit if your income has increased
You may get offers more suited to your financial situation
You may see a drop in your credit limit if your income has decreased
A lower credit limit can increase your utilization ratio, which negatively affects your credit score
Your income information could be shared with a third party
How to update your income for your credit card issuer
The process of updating your income may slightly vary depending on your card provider, but in general, here’s what to do:
Log in to your online credit card account.
Find your personal details option.
Locate your income details.
Enter your new income and submit.
If you can’t find that kind of information in your online profile, then you can try calling your credit card issuer directly to update you income information. By talking to someone directly, you may even be able to get immediate notice of how your credit limit will be impacted.
Compare rewards credit cards
If your income has increased, you can either update your income with your current credit card account and potentially get a higher credit limit, or you can apply for another card. Having a higher income can sometimes give you access to better credit cards and to a higher credit limit.
Can I lie about my income?
Lying about income is the most common lie on credit card applications. But if you get caught, you could end up in trouble because that is considered a fraudulent act according to section 342(1) of the Criminal Code of Canada and is punishable by law.
Updating your income will mostly affect your credit limit and the potential offers from new card providers. If you have increased your income, this will likely cause a boost in your credit limit. But if your income decreased, your limit could drop.
If you decide to apply for a new credit card, make sure you compare your options until you find the best card for your financial situation.
Frequently asked questions
In general, they don’t. But it’s always best to keep it honest.
It depends on your cardholder agreement. If you’re not sure about it, call customer service and ask.
While each institution will have its own procedure, generally, you can go into a bank branch to update your income. Otherwise, you may be required to call your bank’s credit card department.
Kliment Dukovski is a credit cards writer. He's written over 600 articles to help readers find and compare the best credit cards. Kliment has also written on money transfers, home loans and more. Previously, he ghostwrote guides and articles on foreign exchange, stock market trading and cryptocurrencies.
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