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When you apply for a credit card, the credit card issuer will ask you for your annual income. They want to be sure you have the means to pay your bills on time. Issuers may ask you to calculate your income in specific ways. For example, they may ask for net income or gross income when filling out an application.

If you’re single and work a salaried job, this may be fairly easy to figure out. However, for many people, income can be complicated and comes from a wide variety of sources. It also might be shared with a spouse.

Here’s a look at what you need to know about what annual income means on a credit card application, and how to know what types of income to include if you have multiple sources.

What Counts as Income?

For the most part, any money that is paid to you directly and that you have reasonable access to counts as income. This includes money you received from an employer or, if you’re self-employed, from clients. It can also come from other sources, such as investments or retirement benefits. Note that income tends to vary by age, and it is not the same as net worth.

The following are some examples of types of income credit card issuers may consider:

•   Salary and wages

•   Commissions

•   Tips

•   Bonuses

•   Income from a spouse or partner

•   Pension benefits

•   Social Security benefits

•   Public assistance

•   Alimony and child support payments that you receive

•   Interest

•   Dividends

You may not have to include alimony or child support payments as income on a credit card application. The reason? Credit card issuers understand that those payments may already be earmarked for the support of an individual.

Recommended: What’s the Difference Between Income and Net Worth?

What Is the Difference Between Gross and Net Income?

When it comes to calculating income, it’s helpful to know what gross income and net income mean.

Your gross income is the total amount of money you make before any other deductions are taken from it. Deductions may include things like taxes, 401(k) contributions, and health insurance premiums. Your gross income represents income from all sources.

Your net income, on the other hand, represents how much money you have once all deductions have been made. For individuals, this is their “take-home” pay, which can be considerably smaller than gross income. Credit card issuers may ask for net income as it represents money that you can access and isn’t earmarked for other purposes.

Tools such as spending apps can help you organize and manage the money you earn.

How to Calculate Your Gross Annual Income

Calculating gross income is relatively simple. You’ll need to add up income from all sources. For tax purposes, this will include wages, tips, bonuses, commission, capital gains, dividends, alimony, pension payments, interest, and rental income. You can find your adjusted gross income by subtracting above-the-line tax deductions, such as contributions to 401(k)s and traditional IRAs.

Credit card issuers can look at other income that’s not necessarily taxed, such as life insurance payouts of gifts. So be sure to include that in your calculation for a credit card application.

How to Calculate Your Annual Net Income

Calculate your net income by taking your gross income and subtracting deductions, including taxes, such as income taxes, capital gains tax, and employment taxes. You’ll also need to subtract contributions to retirement accounts and insurance premium payments.

If you receive a paycheck, there may be a line that spells out net income.

Recommended: How to Calculate Your Net Worth and Wealth

What Types of Income Don’t Count on a Credit Card Application?

There are some types of income that you can’t include on a credit card application. Generally, these are forms of income that you don’t have access to. For example, if your wages are being garnished to pay off a debt, you cannot include that amount of the garnished wages as income, as that money belongs to your creditor. Similarly, you can’t include money that goes toward alimony or child support payments or that you need to use to pay off tax debt.

What Happens If I Lie About My Income on a Credit Card Application?

It may be tempting to fudge your income on a credit card application. After all, tacking on a few thousands dollars to your income may be the difference between being approved for a credit card and being rejected. That said, you should never lie about your income on a credit card application. If you do, you’re committing fraud, and it’s a federal offense. So while it may not seem like a big deal to give your income a little boost, if you’re caught, you could face up to 30 years in prison and a fine of up to $1 million.

What Other Information Does a Credit Card Application Require?

In addition to income, you can expect a credit card issuer to ask for the following information on a credit card application:

•   Legal name and a valid U.S. address

•   Housing costs, which help the issuer determine how much debt you can afford to pay back

•   Your Social Security or Individuals Taxpayer Identification Number, which is needed for the credit card issuer to make a hard pull on your credit report to check your credit score

Issuers consider your credit score when they determine whether to extend credit to you. A high credit score shows lenders that you have a history of responsibly managing debts and paying your bills on time. Lower credit scores indicate that a borrower is less likely to make on-time payments, and lenders may be less likely to approve them for a card.

The best way to maintain a healthy credit score is to always pay your bills on time. You can receive a free credit report each year from the three major credit reporting bureaus: Experian, TransUnion, and Equifax. Check your credit report regularly to ensure there are no mistakes that could be dragging down your score. Report mistakes to the credit bureaus immediately.

The Takeaway

Credit card companies look at your annual income to determine how much credit you can afford and to assess their risk in extending you credit. Some may specify how they wish you to calculate your annual income, frequently asking for gross or net income. Gross income is the total amount of money you make before any other deductions are taken from it. Net income represents how much money you have after deductions have been made.

To calculate either figure, you’ll need to gather information about all your income sources. A money tracking app can help you keep tabs on your finances. The SoFi app connects all of your accounts in one dashboard so you can get a bird-eye view of your finances, track income and spending, and monitor your credit score.

FAQ

What does it Mean when a credit card application asks for annual income?

Credit card companies may specify how they want you to report your annual income. They may ask for gross income, which includes all income before taxes and deductions, or net income, which is income after taxes and deductions have been subtracted.

What counts as annual income?

Annual income includes all money that you can say you reasonably have access to. This typically includes salary and wages, commissions, tips, bonuses, income from a spouse or partner, pension benefits, Social Security benefits, public assistance, alimony and child support payments, interest, and dividends.

What doesn’t count as annual income?

You cannot include income that you don’t have access to, such as garnished wages, alimony and child support payments you’re required to make, or money that must be used to pay off tax debt.

Photo credit: iStock/max-kegfire

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you don’t have a college degree, certain jobs may be out of your reach. But does that mean that you can’t feel professionally fulfilled? Absolutely not. There are many careers that don’t require post-secondary education and can provide workers with a sense of happiness and purpose.

Here’s a look at the characteristics that make a job rewarding, the industries that offer the greatest sense of well-being, and the most satisfying jobs you can get in those industries that don’t require a degree.

Characteristics of a Satisfying Job

It can be tough to pin down the characteristics of a satisfying job. That’s because satisfaction can be subjective. There are plenty of roles out there that you may prefer to avoid but others would be over the moon to try.

That said, the most rewarding jobs tend to share some qualities. According to the Urban Institute, good jobs typically offer:

•   Liveable wages that allow employees to cover basic needs.

•   Growth opportunity within the company to improve skills and advance.

•   Workplace flexibility and control over one’s schedule.

•   Benefits, such as paid leave, health care, and retirement contributions.

•   Safe working conditions.

Why Is It Difficult to Find a Satisfying Job Without a College Degree?

There are other characteristics you might find necessary to consider work satisfying. For example, you might want a job where you help people, like a doctor, or a job where you work with animals, like a veterinarian.

Unfortunately, without a post-secondary degree, your pool of available jobs will likely be limited. Depending on the job market in your area, that may mean you have to compromise on the job you choose or relocate so you can be closer to meaningful work you qualify for.

Recommended: Should I Go to Community College?

Tips for Finding a Satisfying Job Without a College Degree

It’s a good idea to start your job hunt with online search engines. Your search will likely lead you to large job sites that compile listings from industries across the country. If you’re looking for a particular type of role, you may want to try industry-specific job boards.

Networking and word of mouth are also good ways to find work. Reach out to people in your area who work in the industry you’re looking to join. Ask to meet with them to learn what you need to do to successfully apply for a job in that field, and put the word out that you are actively looking.

Just because a job doesn’t require a degree doesn’t mean you won’t be able to find one that pays well. Consider exploring high-paying trade jobs and high-paying vocational careers to find jobs that pay top dollar.

Once you begin to earn a salary, consider using a spending app to help you budget and track your money.

Recommended: 25 High-Paying Trade Jobs in Demand

Top 10 Most Satisfying Jobs You Can Get in America Without a Degree

Now for the tricky part: How to take a subjective measure like satisfaction and apply it to a list of jobs that don’t require a degree?

For this list, we looked at The Washington Post’s roundup of 10 industries that offer the greatest sense of well-being, which was based on data from the U.S. Bureau of Labor Statistics. Those fields include:

•   Agriculture, logging, and forestry

•   Real estate, rental, and leasing

•   Construction

•   Management, administrative, and waste

•   Information

•   Health and social assistance

•   Arts and entertainment

•   Transportation and warehousing

•   Wholesale

•   Retail

What are the most satisfying jobs in those industries? Read on for examples.

Forest and Conservation Workers

Forest and conservation workers typically help measure the state of forest and improve quality. They may work for state and local governments or for privately owned forest lands.

Median annual wage: $30,550

Job outlook: Employment in this industry is expected to decline 3% through 2031. However, there are still 2,300 openings for forest and conservation workers projected each year.

Real Estate Brokers and Sales Agents

Real estate brokers and sales agents help people who are looking to rent, buy, or sell properties. They tend to be self-employed and are usually able to set their own hours.

Median annual wage for real estate brokers: $62,010

Median annual wage for real estate sales agents: $48,340

Job outlook: Employment is expected to grow 5% through 2031, which is about as fast as average. There are a projected 54,800 job openings each year.

Construction and Building Inspectors

Construction and building inspectors work alongside or as part of a team to make sure that new buildings meet codes, ordinances, zoning restrictions, and match up with specifications made in building contracts.

Median annual wage: $61,640

Job outlook: Employment for this job is expected to decline 4% through 2031. However, there are a projected 14,800 new jobs annually.

Refuse and Recyclable Material Collector

As part of waste management infrastructure, refuse and recyclable material collectors collect and dump waste materials. Their job may include driving waste collection vehicles.

Median annual wage: $38,500

Job outlook: N/A

Library Assistant

Library assistants work in public, private, or university libraries helping to shelve and organize materials, assist patrons, and perform clerical tasks. The job typically requires a high school diploma, and may require a post-secondary certificate.

Median annual pay: $34,050

Job outlook: Library assistant jobs are expected to decline 4% through 2031, with a projected 24,000 openings each year.

Home Health Aide

Home health aides are among the fastest growing jobs. They help people with chronic disabilities or illness perform acts of daily living, like getting dressed and eating. They may work in a client’s home, a group home, or a day service facility.

Median annual wage: $29,430

Job outlook: Jobs for home health aides are expected to grow 25% through 2031, with about 711,700 openings projected each year.

Musician

Musicians sing or play musical instruments in recording studios or in front of live audiences in concert halls, clubs, and churches. Many singers work part-time.

Median hourly wage: $30.49

Job outlook: Employment for singers is expected to grow through 2031 by 4%, with 20,800 projected job openings.

Truck Driver

Truck drivers are charged with transporting goods from one place to another. It’s typically a pretty solitary line of work, but if being on the open road brings you happiness, it might be worth considering.

Median annual salary: $48,310

Job outlook: Employment is expected to grow 4% through 2031, which is nearly average for all occupations.

Material Recording Clerk

Material recording clerks help track product information and keep supply chains running and businesses on schedule.

Median annual wage: $37,870

Job outlook: Employment is expected to decline 3% through 2031, with 131,900 projected job openings each year.

Retail Sales Worker

Retail sales workers help customers in stores find the products they need and then ring them up at the cash register. They may also restock shelves

Median hourly wage: $14

Job outlook: Employment is expected to stay the same through 2031, with a projected 594,00 openings each year

The Takeaway

Not having a college degree doesn’t mean you can’t find fulfilling work. Satisfying jobs that don’t require a degree can be found in any industry, though certain roles may provide a great sense of well-being. Examples include a construction inspector, a real estate broker or sales agent, a retail sales associate, a musician, a truck driver, and a library assistant. As you hunt for a job, look for roles that match up with what you want in terms of the type of work, workplace, amount of social interaction, and wage requirements.

Once you find a satisfying job and start earning a paycheck, a money tracker app can help you manage your finances. The SoFi app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.

FAQ

What are the most satisfying jobs?

According to a Washington Post analysis of Bureau of Labor Statistics data, the most satisfying jobs can be found in the agriculture, logging, and forestry industry.

What jobs pay over $100,000 without a degree?

It is possible to find jobs that pay over $100,000 a year and don’t require a college degree. One example is a construction site manager or a senior real estate manager.

How can I make $100,000 a year without a degree

If you want to make more than $100,000 a year without a college degree, begin by researching jobs that offer high wages and only require a high school diploma. You may then consider taking an entry-level position that allows you to gain the skills and experience needed so you can advance to higher wages.

Photo credit: iStock/Pekic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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If you fail to pay a debt, your creditor will do everything they can to you to pay them back. Eventually they may even send your debt to a collections agency that will get to work recovering the money you owe. The collections agency may hound you to pay your debt, potentially threatening to garnish your wages until it’s settled.

But what happens if you don’t believe you owe the debt in the first place? You may have already paid it off, and the collections agency did know. Or a scammer may have gotten hold of your personal information and used it to fraudulently open an account that’s now delinquent.

If you don’t believe a debt is yours, this guide can help you take steps to dispute a debt and win.

How to Dispute a Debt

When receiving calls about a debt that isn’t yours, your first step is to collect as much information about the debt as possible. Find out who is calling, the name of the company, the company address, and company phone number. At this point, don’t give out any personal information. Doing so could come back to bite you later, especially if you’re dealing with a scammer.

By law, collectors have to provide a letter with information on the debt and their contact information within five days of the initial call. Once you receive it, contact the original company to which you supposedly owe money to find out more about the debt.

While you’re at it, you may also want to find out what type of collector is calling. Is it in-house collections, a hired collections agency, or a debt buyer? In-house collections departments should have the most information at their disposal about the debt, while the others may have incomplete information, which could signal the potential for mistakes.

If the collector won’t give you information about themselves, it is a red flag that you may be dealing with a scammer.

What Is a Debt Dispute Letter, and How Do I Write One?

Once you’ve got the address of the collector, send a debt dispute letter within 30 days receiving the information. Fail to respond in this timeframe, and the collector can proceed as if the debt is valid.

Debt letters are not necessarily complicated to write. They may simply say that you’re writing about a collection on a debt you don’t think you owe. Ask the company to provide proof that you owe the debt in question and to stop contacting you if it can’t be proven.

If there’s any other information you need that you haven’t gotten yet, you can ask for it at this point.

Keep a copy of the letter for yourself, and track the copy you send so you can be sure it was received. A dispute letter alone will sometimes stop the collections calls.

The Consumer Financial Protection Bureau (CFPB) provides a sample dispute letter that you can mail to collectors.

Can a Debt Collector Contact You If You Dispute the Debt?

Once they receive the letter, the collections agency has to stop contacting you until it sends you a debt validation letter that documents that you owe money.

With this letter in hand, contact the original creditor and ask them if they have any record that you’ve taken out a loan and are delinquent. If not, they may decide to stop pursuing the debt.

Know Your Rights Under FDCPA

The Fair Debt Collection Practices Act (FDCPA) is a federal statute that governs how debt collectors are allowed to act. There are certain things collectors are not allowed to do, including:

•   Collectors cannot call before 8:00 am or after 9:00 pm, and they are not permitted to call you at work if you’re not allowed to take those calls.

•   They are not allowed to harass you with threats of violence, profane language, or by calling repetitively.

•   They cannot present you with false information, including how much you owe and who is collecting the debt.

•   They cannot speak to anyone about your debt besides the original creditor, credit reporting agencies, and your lawyer. That said, they can contact others to try to find you as long as they don’t discuss the nature of your debt.

•   Collectors cannot engage in unfair practices, such as charging more than allowed by your state.

If a collector violates these rules, you may sue them in civil court, where you may win monetary compensation or they may be subject to fines.

Is There a Statute of Limitation on Debt?

Debts can exceed a statute of limitation, becoming too old to collect. Rules will vary by states, but collectors generally have three to six years. Once the statute of limitation is up, the debt becomes a “time-barred” debt. A collector can still try to collect, but they don’t have a legal standing to make you pay it.

When you contact a collector for the first time, be sure to find out when the debt was supposedly incurred. Contact your state attorney general’s office to find out what the statute of limitations is in your state to determine if the debt is time-barred.

What Not to Do When You’re in Debt

It is likely not fruitful to dispute debt that you do actually owe. If you are in debt, do what you can to pay it off, even when it’s been sent to a collector. Unpaid debt will damage your credit score, making it more difficult and expensive for you to seek credit in the future.

Keep on top of your debt with tools like a spending app, which helps you track how you spend and save each month and manage upcoming bills.

Ways to Remove Collections from Your Credit Report

If collections on a debt you don’t owe shows up on your credit report, you may dispute your credit report with the three major credit reporting bureaus: Equifax, TransUnion, and Experian.

You’ll need to send a dispute letter that includes your contact information, a list of mistakes with account numbers, an explanation of how the information is incorrect, a request to have the collections removed, and supporting information about how the dispute should be reported. Note that if information changes on your credit report, it’s possible your credit score may drop after a dispute.

If you pay off a debt and it’s no longer in collections, you may send a letter to the agency asking them to remove the collections from your credit report. The collector may remove the information from your report as a courtesy, though they don’t have to.

Recommended: Closing a Credit Card With a Balance

Check Your Credit Reports Regularly

It’s a good idea to check your credit report annually. Make sure there are no errors on the report, and be on the lookout for evidence of credit card frauds or accounts that were opened fraudulently. You can receive a free credit report from each of the credit reporting bureaus once per year.

Recommended: Guide to Canceling a Credit Card Payment

The Takeaway

If collectors are asking you to pay up on a debt you don’t believe you owe, dispute it as soon as possible. In some cases, it may be a purchase or debt that slipped your mind, or it may be an error. If the debt is particularly difficult to prove or disprove, you may need to hire a lawyer who can help you settle the matter in court.

Regularly monitoring your credit score is one way to keep financial matters from slipping through the cracks. A money tracker app can also help. The SoFi app connects all of your accounts in one convenient dashboard. From there, you can see all your balances, spending breakdowns, and credit score monitoring, and get other valuable financial insights.

FAQ

How do you fight a collections agency and win?

If a collections agency is trying to collect a debt you don’t owe, your best course of action is to gather information about the debt and send a dispute letter immediately asking for debt validation. This is sometimes enough to stop the collections process. But if a debt is difficult to prove or disprove, you may need to hire an attorney.

Can I dispute a debt sold to a collections agency?

Yes, you can dispute a debt sold to a collections agency.

What is the best thing to say when disputing a collection?

A dispute letter should say that you’re writing about a debt you don’t owe. It should also ask that the collector prove the debt or cease contacting you.

Photo credit: iStock/PeopleImages

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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