What does annual household income mean and comprise of on a credit card application?

Speaking of household income, this is yet another of the most popular questions asked on credit card applications. This is one of the most important questions on the application and much will be decided based on the answer you give. Ensure that you put the correct figures on your annual household income credit card application.

Household income is a measure of income of members of a household. To measure the income of a household, the pre-tax money receipts of all residents of the household are combined. Most of these receipts are in the form of wages and salaries and  other forms of income. As households tend to share a common economic fate, the use of household income is among the most widely accepted measures of income.

If you are applying (non-married) it means your approximate yearly income. If married add your spouses income to that total (if getting a card for spouse as well that is) .

Some companies have a minimum annual household income. If you fall below this amount you will be denied. It is that simple. Often you can find this cut off amount on the application itself so look for it.
Annual household income credit card application includes anything that brings in money to the home. If you have income from stock dividends, income from part time jobs or other sources include that on the application. It is not a good idea to make up sources of income but do include the income that you honestly receive. If you are on the short list for a raise at work, wait until you get that raise before submitting your application.

[tags]annual household income credit card application[/tags]