Lying on a credit card application is considered fraud. Because an application is a legal document, you would be committing loan application fraud. Your application is likely to be denied, and you may be required to pay fines and, worst-case scenario, serve jail time. If you are tried and convicted, the fine is up to $1 million and jail time is up to 30 years! MyBankTracker provides the following examples of people who have been convicted of loan application fraud: In 2015, Solomon Gordon Raymond of San Diego was sentenced to nearly five years in prison and ordered to pay $729,192 for committing loan application fraud. Also in 2015, a woman from Raleigh, North Carolina was sentenced to five years in prison for loan application fraud. In 2014, an Ohio woman was sentenced to fourteen years in prison and to pay $73,554 for her role in loan application fraud. As you can see, lying on a credit card application is not just a bad idea, it’s a crime. They say money makes the world go ‘round — but it also makes paying your bills a whole lot easier. That’s why it’s important that you never take out a loan or open a credit card account that you know you cannot pay back.