The only truth that matters on credit applications is the VERIFIABLE proof.

For example: If you are a server/bartender and you make minimum wage plus tips, when you fill out a credit application for an auto loan, you will probably only be able to use the portion of the income that reports on your pay stubs. All the cash tips that go unreported do no help you prove income.

Another example: If you rent or own a home, and other people live there with you and pay part of the rent, you can only split the rent on your application if those other people are not your spouse and are on the lease/mortgage with you. The only possible exception is if you claim rental income on your taxes for the rooms you are renting out. Some lenders will offset your debt with the additional income.

In this day and age, lenders are smart. You cannot slide by with stated income or stated rent loans if you have less than perfect credit. The lenders are going to verify everything.

There are websites out there that will send you fake pay stubs in an attempt to help you prove your income. If the lender tries to verify the info on the pay stub, not only is your loan declined, but you will be black listed by every lender that lender works with. Oh yeah…it is illegal too.

Long story made short: Be honest. If you have questions, talk to your finance person before he submits your loan application to the bank. All changes made after submission are looked at much harder and the lender is less likely to approve you at that point.