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"OTHER THINGS BEING EQUAL", increased income has no impact on spending. You can't claim other things being equal, then change other things. If you're changing income and spending, then you're not keeping things equal.
If anything income rising tends to increase "propensity to spend" and that's a well documented fact. While yes, it does taper off eventually, you still have millionaires who are spending more in a day than most people make in a month.
If you're then going to say that despite "OTHER THINGS BEING EQUAL" you're going to increase credit limits while keeping balances the same, you're again proving that you're not keeping other things equal.
You can't choose to just keep certain things the same and change others just to suit you need. Either keep everything else the same, or don't.is
Quite honestly, I'm not even sure what you're point is anymore. You just seem to be arguing with anyone over anything and going in no real direction.
Sigh, I thought it was obvious, but let me rephrase that for the dense:
OTHER CREDIT FACTORS BEING EQUAL
Increased income does not cause people to spend more.
The point is, higher income facilitates higher credit scores.
A person who makes $50,000 and spends $40,000 is spending 80% of income....increase that income to $100,000 and it is very unlikely that person will start spending $80,000 but they are likely to pay down their outstanding debt AND qualify for more credit.
Specifically, that $50,000 earner with very good credit is likely to improve their credit when earning $100,000. Ultimately, the effect on credit score is likely to depend largely on whether the person is an overspender or underearner. Overspenders COULD improve their credit score with greater income, but most won't because they'll just spend more. Underearners WILL improve their credit score with greater income because they don't have a spending problem.
how you treat your money is generally linked to who you are as a person. your financial situation generally reflects you personally.there is usually a link as to why someone may have lots of credit card debt or spending issues or low credit scores..
those that spend more than ,usually think less than and that is there way of coping.
many in difficult situations situation would have found their way out years ago while others flounder around struggling to pay bills and credit scores can reflect that fact. .
credit score reflect a bit more than you just pay your bills . they reflect how well you plan for events that could be financially devastating before they happen , they reflect your ability to be determined and find ways around situations where others throw up their hands . it reflects your ability of evaluating situations that could be hazardous to your weath . it can reflect your ability to earn a livable wage.
while a good score doesn't mean you personally had to that in your situation a bad credit score says you failed to do much of it ,whether your own fault or things YOU considered beyond your control.
to some extent they reflect a bit of honesty as well and that is why the insurers as well as other facilities price you based on credit score and insurers use credit score/ driving record.,
they just didn't pull that grading out of a hat. they had to prove that fact to the FTC. after reviewing millions of claims they found:
as a group high score and lower score drivers had the same track record of number of claims and amounts in liability claims. no difference between high and lower scores.
accident claiims were the same in both number of claims and amounts . no difference between high and lower scores.
but comprehensive claims ,which are claims with nooooo witnesses they found not only were number of claims running 3x higher for the lower score group but the claim amounts ran 3 to 4x the amounts claimed by the high score group.
now number of claims is easy to explain, the high score group tended to have higher income and may eat expenses rather than not put them through insurance.
but what couldn't be explained away was the fact claim amounts soared when no witness's were present in a comprehensive claim. insurance jobs,insurance fraud , padding bills and collusion with the body shop to make bills bigger to eat deductables were all reasons.
that is why the lower score group gets charged more -potential honesty when it comes to money. remember you may be the most honest guy around with a lower score but your peers in your range are not so honest as a group so you will be assumed a bit dishonest whether you personally are or not.
it is just guilt by association since no one knows who it is that is less trust worthy when it comes to money..
Last edited by mathjak107; 09-19-2014 at 04:47 AM..
how you treat your money is generally linked to who you are as a person. your financial situation generally reflects you personally.there is usually a link as to why someone may have lots of credit card debt or spending issues or low credit scores..
those that spend more than ,usually think less than and that is there way of coping.
many in difficult situations situation would have found their way out years ago while others flounder around struggling to pay bills and credit scores can reflect that fact. .
credit score reflect a bit more than you just pay your bills . they reflect how well you plan for events that could be financially devastating before they happen , they reflect your ability to be determined and find ways around situations where others throw up their hands . it reflects your ability of evaluating situations that could be hazardous to your weath . it can reflect your ability to earn a livable wage.
while a good score doesn't mean you personally had to that in your situation a bad credit score says you failed to do much of it ,whether your own fault or things YOU considered beyond your control.
to some extent they reflect a bit of honesty as well and that is why the insurers as well as other facilities price you based on credit score and insurers use credit score/ driving record.,
they just didn't pull that grading out of a hat. they had to prove that fact to the FTC. after reviewing millions of claims they found:
as a group high score and lower score drivers had the same track record of number of claims and amounts in liability claims. no difference between high and lower scores.
accident claiims were the same in both number of claims and amounts . no difference between high and lower scores.
but comprehensive claims ,which are claims with nooooo witnesses they found not only were number of claims running 3x higher for the lower score group but the claim amounts ran 3 to 4x the amounts claimed by the high score group.
now number of claims is easy to explain, the high score group tended to have higher income and may eat expenses rather than not put them through insurance.
but what couldn't be explained away was the fact claim amounts soared when no witness's were present in a comprehensive claim. insurance jobs,insurance fraud , padding bills and collusion with the body shop to make bills bigger to eat deductables were all reasons.
that is why the lower score group gets charged more -potential honesty when it comes to money. remember you may be the most honest guy around with a lower score but your peers in your range are not so honest as a group so you will be assumed a bit dishonest whether you personally are or not.
it is just guilt by association since no one knows who it is that is less trust worthy when it comes to money..
which is ne reason i will probably ever carry comprehensive.
your insurer doesn't just use that score if you take comprehensive insurance. it effects all your insurance. your rates are based on an insurance score which contains your credit score as part of it.
As your income increases, assuming you continue to pay as agreed (the premise essentially assumes as much), your available credit will increase...but marginal propensity to spend falls as income increases, so I am presuming that your credit utilization ratio will fall as your income and available credit both increase; hence rising credit score. You may also be able to reallocate your credit to a better (higher-scoring) mix, e.g. pay off credit cards and auto loans, as your income rises.
Having a mortgage does not equate to income increasing, but it does equate to increasing discretionary income because you have locked in your P&I payment and made yourself immune from the rent inflation that keeps renters broke.
But not immune to all the other things that come along with home ownership, like insurance, repairs, taxes, etc. Renters have made themselves immune from the ownership costs inflation that keeps homeowners broke.
I make more than the minimum (maximum?) to get govt assistance, but I live on less than the minimum (maximum?) to get govt assistance because of a student loan garnishment.
In other words, I would qualify for assistance if I earned only the amount on which I actually live, and would probably qualify for more than the amount of the garnishment.
Guess I'm just screwed.
Darn it. If you had just managed to pay off that loan that you've had for 30 years, you'd be in the clear.
freemkt, as your title entails, we are lucky enough to live in a free market in the United States. The beauty of this system is youre perfectly free to go out and start up your own payday loan center and offer YOUR hard earned cash to the poor for what you feel like would be a reasonable interest rate for them. Seriously, put your money where your mouth is and go loan these poor people your money at 2 or 3% interest.
Youll be back on here in no time ranting about deadbeats and irresponsible poor people.....
I make more than the minimum (maximum?) to get govt assistance, but I live on less than the minimum (maximum?) to get govt assistance because of a student loan garnishment.
In other words, I would qualify for assistance if I earned only the amount on which I actually live, and would probably qualify for more than the amount of the garnishment.
Guess I'm just screwed.
Oh, if only the decision to borrow money and the decision to not repay as agreed were within your control. What a wonderful world it would be.
If only someone would drop marketable skills in your lap, the way that others have had their marketable skills just handed to them, with no effort whatsoever on their part.
If only someone would just hand you a good paying job, for no reason at all. That is how others have gotten ahead, but it just hasn't magically happened for you. I guess the universe is simply unfair to you, and there is nothing at all you can do to help yourself.
I think I am going out in the garden now to eat worms. As I munch them, I will shake my fist in anger towards the heavens, lamenting at the unfairness that freemkt is the only individual ever to reap the consequences of his choices.
Borrowers with a good repayment history should be working with a traditional lender on a personal loan or line of credit at a reasonable interest rate rather than dealing with loan sharks.
freemkt, as your title entails, we are lucky enough to live in a free market in the United States. The beauty of this system is youre perfectly free to go out and start up your own payday loan center and offer YOUR hard earned cash to the poor for what you feel like would be a reasonable interest rate for them. Seriously, put your money where your mouth is and go loan these poor people your money at 2 or 3% interest.
Youll be back on here in no time ranting about deadbeats and irresponsible poor people.....
The housing market is in no way free.
And burger flippers are free to start up their own burger joint.
Riiight.
I was barely able to start an online reselling business with the pittance of my wages.
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