 TITLE: How to Calculate Self-Employment Income CONTENT: Why Income Matters on a Credit Application\n------------------------------------------\nIncome doesn't appear on your credit report, and it doesn't factor into your credit score. But your income is still critical to helping you qualify for a loan or credit card because it helps lenders assess your ability to pay. If your monthly debt payments take up too much of your monthly income (indicated by a high debt-to-income ratio), a lender may see your ability to make payments as unsustainable and either deny your application or offer a lower credit line.\nAccuracy matters when it comes to reporting income. Falsely inflating your income to improve your chances of getting a loan is fraud, punishable by fines or even jail time. Lenders may verify your income, in which case lying (or even guessing) is counterproductive. On the other hand, you want to report all your qualifying income. If your estimate is too low, you'll have a harder time getting approved for the loan or line of credit you're seeking.\nBottom line: If you're going to submit income information on a credit application, take the time to make an accurate calculation. Here's how. END