How often do people lie to get credit? Interesting question isn’t it? The answer is…every day, several times a day there is an intentionally falsified credit application filed. According to IDAnalytics 1 in 15 Americans have lied on a credit application. So, let’s look deeper into that study.
First, IdAnalytics is selling a service to the lending industry. They make more money if lenders are afraid of fraud, so it is in their best interest for the numbers to reflect a high percentage of false credit applications. They did not lie, yes 1-15 Americans have lied on a credit application, but the company does not readily admit that the vast majority have been caught and denied credit.
The lies are not to obtain credit and default on it as a way to make a profit. What happens is that they ”pad” their income, or add their spouse’s income to theirs in order to obtain a low credit score car loan or a credit limit increase on a credit card. As you read this, several of you are thinking; ”I’ve done that, it’s not a crime.” Well, that is the fraud that is included in the study by IDAnalytics and it is fraud, to be clear.
The study by IDAnalytics has been making the internet circuit, but with only half the story told. If you do not get the whole story, you might think that Americans are all liars and thieves. That is the fear that makes IDAnalytics money and is their end goal of this study. Do not buy into it.