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Credit score is independent of income level. The score we use in our insurance risk modeling doesn't care about the amount of money you earn. There is a lot of
by meztez 12y ago
Credit score is independent of income level. The score we use in our insurance risk modeling doesn't care about the amount of money you earn. There is a lot of actuarial papers just demonstrating this. Credit score is often though of something reflecting wealth. It is not the case. It is a score that reflects the likelyness of you defaulting on future obligations.
- reitzensteinm 12y agoWhat parent is saying is that if you have a high income level, it's not the end of the world to pay cash for everything, so you can live with a bad credit score. You might have to buy a beater while you save for a nice car, but if your income is low the equivalent option is taking the bus.