Your income plays a key role in getting you a credit card. An individual with low income has to face many difficulties for card approval because poor salary means individual’s repayment capacity may is not good, in the eye of the bank.

On the other hand, many employers in India do not issue salary slip which is more problematic. Because for any bank, offering a credit card without income proof is risky since there is no way to evaluate credit worthiness of the applicant.

However the benefits and free money offered by the card company lures many. And many people often fake salary slip to get a credit card by misusing company’s official stamp or letter head without thinking about the consequences of misdoings. Ideally such individuals show higher income on the pay slip and get cards with higher credit limit. In fact many a times, bank or third party agents ask applicants to produce counterfeit pay slip in order to meet their targets.

Consequences of Fake Salary Slip for Credit Card

There are many repercussions of submitting fraudulent salary slip and any type of fake document while applying for a credit card as follows:

(1) Job loss: After submitting documents required for credit card, banks or third party service do a thorough verification check for each and every proof submitted. If employer comes to know that an employee has generated fake pay slip for credit card, straightaway employee will be removed from the company. More consequences will follow.

(2) Legal trouble: Bogus papers can also land you in legal trouble. Employer can sue the employee since he/she has forged the official document, signature and used official stamp to show high income. Even banks can file a legal case for submitting such fake documents. A case under Sections 420, 465, 465, 467 and 471 of the IPC will be applied.

(3) Police case: If not legal case, either the employer or bank may file a FIR against such applicants.

Check out: Credit cards for low income earners.

(4) No financing in the future: Even if you manage to get credit card but later default on the payments, banks will submit your report to CIBIL. And later during recovery process, if banks come to know the fraudulent documents were submitted, then this will also be reported to credit rating agency. And this would be a financial nightmare. Almost every financial institution verifies CIBIL record before approving any application. If bank comes to know about previous history, then they will not offer any type of finance.

Additional Reading: consequences of credit default

(5) New job: Getting a new job will become extremely difficult. This is because any prospective company will ask for previous employers offer letter, salary slip, and verify whether applicant has any police or legal case against his/her name. Non-availability of these documents because of termination from previous employer will naturally create a problem.

(6) Passport denial: Whenever passport application is made, a thorough verification check is done to check any legal or police case is registered on the applicant’s name. Passport application will get rejected in such cases.

(7) Visa trouble: Not just the passport, moving out of the country will also become extremely difficult. Whenever visa application is made, thorough investigation is done to verify applicant especially legal or police case against the applicant. No matter how talented you are, no country would ever want individual with criminal case against him/her to enter their country.

So bottom line is to be honest. Misrepresentation of facts for personal gain would never do any good and instead screw up your life in someway or the other.

Alternatives to Pay Slip

Individuals have various options to provide proof of income in order to obtain a loan. These options include –

1. Offer letters
2. Monthly cheques
3. Bank statements, an official letter from the employer stating the salary
4. Against Income Tax (IT) return
5. Against fixed deposits
6. Against LIC policies
7. Against equity stocks
8. Against mutual funds

These alternative documents can be used as proof of income instead of salary slips.

If an individual chooses to generate a salary slip using online tools, any issues or inaccuracies with the slip cannot be blamed on the online service provider. The responsibility lies solely with the individual who generated the slip. Therefore, it is advisable to take the necessary precautions and use the safer alternatives to ensure a smooth loan application process.

Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at nikeshmehta@allonmoney.com.