Do Credit Card Companies Call Employer?

While applying for regions secured credit card it is important to take employer in consideration. The company may call the employer and confirm the salary details. However, this option is only used in emergency conditions. That is why it is important to check Merrick bank secured visa reviews and reflex MasterCard reviews before purchasing respective cards. Also, the employee has to provide some basic employment details while submitting the application. Also, to increase the chances of acceptance, the employee should know how do credit card companies verify income.

The specific criteria vary from company or company and from card to card. For example, if any employee is purchasing an unsecured card then the company may contact the employer. If the details are verified successfully then the application is accepted. However in case of Secured credit card, no one contracts the employer. That’s because the employee is depositing his collateral equal to the credit limit. Below are some employment details, the employee has to provide while applying: 

Length of employment: This is the main Question as companies want to check how long an employee stays in the company. For example, any lending company may ask the details of previous employment. That’s because the companies may provide a credit card with a high limit based on current employment. But they also want to check how the employee may react to the repayments if he is fired. That’s why they want to check if there is any bond or not. 

Note: The length of employment is a general factor, companies want to consider. The application is not rejected if any employee is fresher. But if other factors are not supporting the employee for example Credit score then this can help a lot. 

Contact details of employer or Company: In cases of unsecured cards, companies are interested in checking the employer details. That’s because the credit that is being borrowed by the Employee may be high. That’s why they want to determine the ability to repay debt. That’s why they ask for contact details. The employee should ask the manager or HR person before providing the details.

 Annual income: If the credit card application is accepted is rejected is based on the annual gross income. For example, if an employee is applying for a credit card with a limit of $5,000 and his annual income is $50,000 his application is easily accepted. Here in case, he has an annual income of $10,000 then it may be rejected. These companies are interested in checking the repayment capacity. Also, if the annual income is high but there are other debts too then the application may be rejected. That’s why other factors like credit score matter a lot. For example, if the credit score is decreased because of previous debt, this indicates late repayments. Now the companies won’t be interested in risking their money. 

Through payslips: The Employee who’s asking for credit also has to deposit 3 or 4 payslips along with the application. That’s how the company checks the consistency in salaries. For example, in many cases, the salary is based upon performance. Suppose an employee is getting $20,000 in the first month then $12,500 in the second. This variation may be high and is observed in mainly employees who are working in the sales department. For example in covid-19, people are not travelling. That’s why sales employees are unable to get closures. So their repayment capacity is highly affected. 

Recent tax statements: Tax statements are important to check if the employee is paying tax or not. This is just another way of verifying annual income.