What’s a White Lie?

So, you are in the bank, having been waiting for almost an hour, even though you made an appointment, thinking about all the extra money that you would have after getting that credit card processed and that loan approved.

Your son can finally go off to football training, your daughter can finally move off to university and you and your husband can install that Jacuzzi that you’ve wanted for years. But you also think of the bad credit history that you got, the time that you skipped your car payments- a little damper on your credit history…not to mention all the late cell phone payments. You just might be tempted to tell a little lie when filling out that loan application.

My sister Eliza and I were chatting about this topic, and she mentioned that she used to work as a loans officer in the bank. She laughed out loud as she exclaimed, “ Girl, I have head it all”. As she continued, she mentioned the cases of hearing a myriad of excuses, lies and fibs on the application forms. The two most common places that people stretch the truth on a credit application are in the Employment and Residence as well as Marital Status sections. Coincdentally, these are the places this is vital information to the lender.

Eliza remarks, “ I have seen it all, from putting your parents address, even though you moved out 15 years ago, putting your maiden name even though you’d been married happily for 5 and listing out your portion of the rent if you have a roomie.”

Your time on the job is the other very important piece of employment information that can lead to problems if discrepancies are found. One of the most common errors is claiming you have worked for a company for several years, but your employer says you are a “seasonal” employee, or they will only say how long you have been there since your most recent hire date. Some people do have seasonal jobs or are regularly subject to lay-offs and that information is very useful when your loan is being decisioned. If you started at company (A) four years ago and worked there for one year, then worked at company (B) for two years, and have been back at company (A) for the past year, do not write down that you have worked for company (A) for four years. put one year, and list company (B) as the previous employer. Of course, the lender would like the application better if you have four years on the job, but when they call your employer to verify your employment they will find out that you have really only been there for one
year and could cancel your loan.

People often think that if they “adjust” some of their information on a credit application, the lender will like the application more and approve it. Sometimes the bank will even give the borrower an initial approval. A problem arises when the finance company starts to verify all of the credit application information and begins to finds discrepancies. Usually the customer is driving “their new car” or has purchased a “new car” by the time the bank goes through this process, there becomes a case of repossession. One of the worst feelings in the world might have to be calling a customer and tell them that they have to bring the car back because the loan fell through.

If you are tempted to tell a white lie on a credit application - for example, giving your parent’s address rather than your own - remember that all lenders have access to your credit file, which will be used to verify the application.