Lying about your income on a loan application to purchase a new car can not only get your loan cancelled, but will get your car repossessed as well.
Repossession shows up on your credit report.
What happens if you lie about your income on a loan?
Easy: the higher your income, the more likely you are to get approved for more credit. But he and everyone else should know that when you lie on a credit application, you are committing loan application fraud, a crime that can lead to jail time and/or major fines if you’re caught.
How do car loan companies verify income?
Income Verification for Auto Loans. Banks, credit union, car dealers, and finance companies sometimes verify earnings when evaluating an auto loan application. The purpose is to confirm that the amount of your future income is sufficient to cover your projected monthly payments.
Is it illegal to lie on a loan application?
Lying in loan application is illegal. If a borrower is found guilty of lying in his loan application before approval, the lender can reject him forthright. If his lie is exposed later then he will become subject to some penalties. Lying in unsecured loans application is not recommended even if you are not caught.
Photo in the article by “President of Russia”