1. Exaggerating Information on a Credit Card Application
Credit card applications request your name, address and Social Security number. However, many credit card companies do not request proof of income. Instead, you're asked to state annual income on the credit card application — and the credit card company takes your word for it.
Whether you're looking to build a credit history or have some other goal in mind, you might be tempted to fudge the numbers in your favor. After all, if there's no verification process, maybe you feel overstating annual income is no big deal. But that is a mistake.
“Lying about your financial/employment status or age can land you a one-way ticket to fraud,” said Natasha Rachel Smith of TopCashback, a site that helps consumers get cash back when they shop. “You may not be intentionally doing it, but you can get in trouble for providing inaccurate information. Lying falls under the fraud category, and you could face fines, probation and/or jail time.”
Also, if you file bankruptcy and the judge discovers you acquired a credit card under false pretenses, you might be unable to discharge this debt in the bankruptcy. To avoid problems, be honest from the start. If you must fudge numbers to qualify for a particular credit card, it isn't the card for you. Carefully research and compare credit cards to find one that’s right for your circumstances.
Related: 5 Tips to Get Your Credit Card Application Approved