Should you update your income with your credit card issuer?
Credit card companies are required to get your income when you apply for a card from them. After that, they may also ask you for the occasional update of credit card income. You just check the income they have on file, and if it’s no longer correct, you update it with your current income.
You can update your income with your credit card issuer at any time. If the card issuer has asked you to do this, you might be wondering if it’s mandatory and if it’s a good idea. You don’t need to keep track of your credit card income, but it depends on how your income has changed since you got the card.
Should you update your income with your credit card issuer?
You should update your income with your credit card issuer if they have increased since you applied for your card. If your income has gone down, it is better not to update it with your card issuer.
Here’s why: Credit card issuers use your income to determine your card’s credit limit. If you got a raise and your income is now higher than it was when you applied for the card, you may be eligible for a credit limit increase.
On the other hand, if your income is less than what it was when you applied for the card, you probably won’t be entitled to a raise. Your card issuer might even decide to lower your credit limit.
The only time you are required to provide your income is during the credit card application process. Providing accurate income information is part of approving a credit card. From there, it’s up to you. So it makes sense to only update your income if it is beneficial to you.
Learn more: How your income affects credit card applications
Why is a higher credit limit important?
There are two reasons why it is worth getting a credit limit increase when possible:
- It can help your credit rating. An important factor in your credit score is your credit utilization rate, which is the balances of your credit cards against their credit limits. If you have a card with a balance of $ 2,000 and a line of credit of $ 10,000, the credit usage would be 20%. Lower use of credit is better, and the rule of thumb is to keep yours below 30%. It’s easier to do this when you have a higher credit limit.
- It gives you more purchasing power. More credit means you can spend more if needed. If you’ve got big purchases to make or have a sudden, urgent expense, a larger line of credit could help you pay for what you need.
While more purchasing power can be a good thing, handle it with care. The downside to having more credit is that it can cause you to over-spend. Stick to your regular spending habits so you don’t start building up credit card debt.
How to update your income with your credit card issuer
Here is the typical process for updating your income with your credit card issuer:
- Log into your online credit card account.
- Go to the personal information section of your profile.
- Select the income option.
- Enter your current income and submit it.
Or you can call the number on the back of your credit card and have a representative update your income for you.
If you want to update your income online, each credit card company setup is a little different. Below are instructions for a credit card income update with major card issuers.
Update your income with American Express
Here’s how to update your earnings with American Express:
- Log into your American Express account.
- Click on “Account Services”.
- Choose a profile. “
- Scroll down and click on “Update your income”.
- Enter your total annual income and click “Confirm”.
American Express also allows you to provide your total assets, including bank accounts, retirement accounts, and investment accounts. This is optional, so you can decide whether you want to include it or not.
Update income with Bank of America
Bank of America does not allow you to update your income online. To update your income with this card issuer, call the number on the back of your Bank of America credit card.
Update revenue with Capital One
Here’s how to update your income with Capital One:
- Log into your Capital One account.
- Select “View Account” for any Capital One credit card you have.
- Click on “I want …”
- Click “Update Income Information” under “Account Settings”.
- Enter your total annual income and employment information, then click “Submit”.
Update Revenue with Chase
Here’s how to update your income with Chase:
- Log into your Chase account.
- Click on the person’s icon in the upper right corner and choose “Profile & Settings”.
- Select “Personal data”.
- Click on “Income”.
- Enter your total annual income and click “Save”.
Update revenue with Citi
Here’s how to update your income with Citi:
- Log into your Citi account.
- Place the cursor over “Profile” to open a drop-down menu.
- Select “Income Information”.
- Click on “Modify my information”.
- Enter your total annual income and your monthly mortgage or rent payment, then click “Save my information”.
Update revenue with Discover
Here’s how to update your earnings with Discover:
- Log into your Discover account.
- Click on “Profile”.
- Select “Edit profile and settings”.
- Choose “Edit income and housing information”.
- Enter your total annual income and submit it.
Update Revenue with Wells Fargo
Wells Fargo does not allow you to update your earnings online. To update your income with this card issuer, call the number on the back of your Wells Fargo credit card.
How to get a credit limit increase
There are two types of credit limit increase: automatic and manual. An automatic increase occurs when the card issuer decides on their own to increase your credit limit. A manual increase occurs when you request it from the card issuer.
If you want to increase your credit limit and your income has increased since you got the card, updating your income could result in an automatic increase.
This does not always happen, however. The quickest option is usually to apply for a credit limit increase yourself. Many card issuers allow you to do this online, or you can call the number on the back of your card.
The card issuer may perform a credit check on you when you request a higher credit limit. If so, it will let you know before processing the request. A thorough credit check can have a low impact on your credit score.
You don’t need to keep your card issuer on top of your earnings. It’s your call, so it all depends on whether you want it and if your income has increased since you opened the credit card.