Is this for a home loan in the United States?
In the US, ever since the Dodd-Frank act, lenders are required to verify "ability to repay" if the loan is to meet the requirements to be a qualified mortgage. If a loan meets the ability to repay and other requirements as a qualified mortgage it receives some specific protections from liability ...
Some banks do and some don't.
If it's a personal loan, the word "personal" is in play here. You do not have to divulge your reason for a personal loan. If the bank insists on a reason, you can be honest and state what the purpose of the loan is as long as it's for a legal thing.
Tell the truth.
It's as simple as that.
It varies from bank to bank. Some lenders would ask for proof for income and some won't. Apart from income proof, there are other such criteria a bank may consider such as your credit report, credit score, debt to income ratio, repayment history, etc.
Purposes for a personal loan can include financing a large purchase, covering an emergency expense, and consolidating debt. So, evaluate the purpose of a loan to determine whether you need to borrow and whether you have the ability to make payments.
Here in India, we can just mention the reason on the loan application and then use it for whatever purpose we ...
If your only interest in adding an authorized user is credit building, you can add the authorized user but never give them the physical card. If you choose to hold onto the physical card there's no financial risk in doing so either.