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Should I tell my credit card companies I have zero income now?

Miami, FL |

I have years of excellent credit but now have no income. I am still very able to pay all my credit card bills, never running a balance and always paying them in full within30 days even without any income.
Must I tell the credit card companies I now have no income?
I can easily keep paying them from savings.

Attorney Answers 3

Posted

Unless you are going to ask them for something (like a forbearance), you don't need to tell them.

However, I caution you on your desire to continue paying them. If you have no income...you need to drastically reduce your expenses now. I am not saying don't pay your credit cards, but people tend to exhaust their cash very quickly because they don't change their spending habits fast enough when income stops. Many run out of cash and end up filing bankruptcy when it would have been smarter to file bankruptcy as the initial response to income loss.

Anyway, just something to think about. Obviously I don't know your specific circumstances.

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Posted

Confession is good for the soul...bad for your credit.

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Posted

There is no requirement to tell them your income changed. It sounds like you use the cards for convenience and, maybe, to build credit - you use them and pay them off right away. As Matt notes, the big thing is to make sure you have a financial plan in place to be able to live off your savings.

Please remember to mark my answer as "helpful" or even the "best" if that is the case. My response is general information not intended as legal advice or to create an attorney-client relationship. Seek advice from a qualified attorney to see how the law fits your specific facts. I am licensed to practice law in Washington and Oregon. www. RRLawGroup.com

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9 comments

Robert Charles Russell

Robert Charles Russell

Posted

As Gary notes, if you do call them and tell them you have no income, they might close your accounts - and that can be bad for your credit.

Asker

Posted

The main problem now is that I have to prove to the local property appraisers that I was dependant financially on my mother when she died to preserve the cap on our home value for property tax assessments, making it look like fraud when I stated a large income on my credit card applications. I am not sure if the property appraiser's office here will check my credit but they want to see my tax returns to prove I was financially dependant on her. They are carefully audited when they give anyone a break on property taxes.

Robert Charles Russell

Robert Charles Russell

Posted

Don't commit fraud. No doubt that they will want some sort of evidence in support.

Asker

Posted

My tax returns do show I was dependent on mom the first of the year. It was before then that I lost my job. But credit reports show a large income.

Robert Charles Russell

Robert Charles Russell

Posted

Well, that is the problem with inconsistencies. You always have to look over your shoulder. The truth is the truth. If you qualify, then you qualify. If you don't, then you don't. If you can't explain the inconsistencies, then you might have a problem.

Asker

Posted

I do honestly qualify, so that is the reason I was wondering if I should tell the credit card companies I have zero income.

Robert Charles Russell

Robert Charles Russell

Posted

As noted, on the credit card debt, all attorneys seem to agree - don't bother.

Asker

Posted

Thank you so much for the answers.

Robert Charles Russell

Robert Charles Russell

Posted

No problem. If this was "helpful" or "best" I would appreciate you making that note.

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