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Posted by on October 4, 2006, 5:13 pm
Hello All,
Does your income have an affect on your credit score? Or does only
your credit behavior affect your credit score?
For example:
John makes $120,000 a year, has an excellent credit history, and has a
score of 820.
Gary makes $45,000 a year, has the EXACT same excellent credit history
as John. Can Gary get an 820 credit score too? Or will his score be
lower because his income is less?
Thanks.
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Posted by Elle on October 4, 2006, 5:42 pm
Income will have little to no effect on credit score.
http://en.wikipedia.org/wiki/Credit_score is as good a
discussion as any I have seen.
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Posted by joetaxpayer on October 4, 2006, 5:45 pm
wangchieh@wongfaye.com wrote:
> Hello All,
>
> Does your income have an affect on your credit score? Or does only
> your credit behavior affect your credit score?
>
>
> For example:
>
> John makes $120,000 a year, has an excellent credit history, and has a
> score of 820.
>
> Gary makes $45,000 a year, has the EXACT same excellent credit history
> as John. Can Gary get an 820 credit score too? Or will his score be
> lower because his income is less?
>
I'm thinking, not.
See http://www.bankrate.com/brm/fico/calc.asp and you'll find they never
ask income. But FICO alone isn't the end, so, yes to your question, they
may have the same score, and FICO impacts the rate they'll be offered,
but the amount they'll get qualified to borrow will be based more on income.
JOE
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Posted by Sgt.Sausage on October 5, 2006, 4:14 pm
> Hello All,
>
> Does your income have an affect on your credit score? Or does only
> your credit behavior affect your credit score?
>
>
> For example:
>
> John makes $120,000 a year, has an excellent credit history, and has a
> score of 820.
>
> Gary makes $45,000 a year, has the EXACT same excellent credit history
> as John. Can Gary get an 820 credit score too? Or will his score be
> lower because his income is less?
I don't think they'd even know income. How, exactly, other
than obtaining your private IRS tax forms, would they even
begin to know your income? Unless you release your tax
forms to the credit reporting agencies, there's no way they'd
even have a way to determine your income. Have you given
them your tax forms lately?
.
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Posted by emailforian@gmail.com on October 12, 2006, 4:07 pm
> I don't think they'd even know income. How, exactly, other
> than obtaining your private IRS tax forms, would they even
> begin to know your income?
That's an easy one to answer: When you apply for a mortgage or a car
loan (and other types of loans), you are asked to provide your income.
Therefore, this information is available to lenders, who in turn report
to the credit reporting agencies. I am NOT saying that lenders always
or routinely report income to the credit reporting agencies (I don't
know one way or the other), but, that is one way that they would or
could know.
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