Credit Card Companies Able to View Your Income

by Lauren M
(Rochester, MN)

Response from news article at:
http://online.wsj.com/article/SB20001424052748703672104574654211904801 106.html" target="_blank">http://online.wsj.com/article/SB20001424052748703672104574654211904801 106.html

According to online.wsj.com, on Tuesday the Federal Reserve released the final rules to the Credit Card Act. One of these rules will require credit companies to look at applicant’s annual income, current debts, and assets. Although a “reasonable estimate” technically follows the rules, credit card companies still have the authority to access your income information.

Although department stores were hesitant about these rules in fear that they would no longer be able to instantly open a credit line, applicants have for too long been dishonest when applying for credit. Therefore, credit companies need to consider the applicants ability to make payments before opening a credit line.

Although some may consider this an invasion of privacy, unfortunately this is the price we have to pay for opening credit when we shouldn’t have. Because of people opening credit and not being able to make payments, credit card companies are forced to take further action before allowing a credit line.

Personally, I do not feel keeping your income private from credit companies is a necessity. If they are borrowing you money, they have the right to know if you are capable of making payments or not. Bottom line: if you want to open a credit card, you should be willing to prove that you can make payments and keep up with the interest, meaning allowing the credit companies to view your income.