A lot of people are guilty of fudging some information when they apply for certain things. Maybe you know someone who lied on a credit card application, maybe you have yourself. It’s easy to see why, the lure of a higher credit line is tempting. Whoever is applying for a credit card or a higher credit line probably thinks, what’s the big deal? It’s not hurting anyone. But the truth is, it’s hurting them more than anyone else.

Firstly, lying on a credit card application is loan application fraud which is a felony. The penalty for which can be up to 30 years in prison and up to $1 million dollars, that’s right $1 million, in fines for EACH instance of fraud. Which means lying on just two or three credit card applications can mean the rest of your life in prison. Now, that’s obviously the worst case scenario and nobody has had punishment that harsh, but there are instances where people did go to prison for a long time and spent the rest of their lives in crushing debt.

Secondly, those questions are there for a reason. Banks are by law required to see how much debt someone can take on. By fudging your numbers, you’re telling the bank that you can take on more debt than you can hope to ever climb out of. Credit card debt is so common in the US that the average household has $15,000 worth of credit card debt. The problem with credit card debt is that it has some of the highest interest rates around. Just $1,000 could easily turn into $10,000 in debt very quickly if you just pay off the minimum each time.

While it would take a very compelling reason for any bank to look that closely at your finances; the fact remains that lying on a credit card is a crime. Nobody wants to go to prison just because they wanted an extra handbag or a new television. It certainly won’t make you look tough when you have to tell the other inmates that you’re in there because you lie on a credit card application. So, be smart and spend within your means.