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so lets see ,so far we blamed landlords , businessman, credit scores , lenders , the gov't , class inequity and THE ALIGNMENT OF THE PLANETS FOR THE LACK OF DRIVE,MOTIVATION AND CREATIVITY FOLKS HAVE FOR EARNING A LIVABLE WAGE all in one thread.
We still need to blame women for working, subsidy kids, & illegal immigrants.
Women for working because with 2 incomes rents and housing prices increased.
Subsidy kids because they work min wage jobs.
Illegal immigrants because they drive up rents. (NVM the fact that he lives in Michigan.)
Women for working because with 2 incomes rents and housing prices increased.
Subsidy kids because they work min wage jobs.
Illegal immigrants because they drive up rents. (NVM the fact that he lives in Michigan.)
Probably not, because two-income couples tend to be homeowners, not renters, and probably were least subject to foreclosure when the housing bubble burst. Renters free up rental units when they buy houses.
Subsidy kids likely have fast food jobs, hence they're not directly competing with me. And if they're living with parents, that is a very good thing because they're not competing with me for housing.
Illegal immigrants are a big problem for low wage workers, especially those who are paying rent.
You hit that right on the head - as your income increases. You are state that a mortgage is what causes the score to improve, but then contradict yourself by saying it's because income increases.
Does having a mortgage now, in your fictional world, equate to income increasing?
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.
Let's start with the big thing you're hung up on which is the type of credit. You (incorrectly) believe that having a mortgage vs other types of scores will have a material impact on a person's credit score. Well, you're wrong.
Having a mortgage vs a Car Loan will have almost no impact. It's a slight variation in a category that only makes up 10% of your score. At most, you're talking about 1-2 points, and that's assuming the person has no other history. A person with a car loan and a cc is better than a person with 2 cc's, and a mortgage and a cc are better than a car loan and a cc, but the difference between the mortgage and car loan isn't that big.
However:
The amount you owe is a much larger part of your score, and again it's unrelated to income as proven above. What does matter is % utilization/% repayment for a mortgage/installment loan. In that respect, a car loan is better because it's easier to pay off 25% of your car loan than 25% of your mortgage.
Sigh. Marginal propensity to spend fals as income rises - people generally should be able to obtain more credit as their income rises (hence reducing credit utiliization ratio), and pay down their debt, both of which improve credit scores.
OTHER THINGS BEING EQUAL, increased income enhances utilization ratio and thus credit score.
Even at my poorest, when I existed on rice and hot dogs, worked 40 hours a week and attended college part time, living in a rented house with 5 other people, I never had a need for a payday loan to make it through "life". If you need a loan to pay for the essentials, like shelter, but make more than the minimum to get govt assistance, you need to seriously re-evaluate the way you are living your life.
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.
Sigh. Marginal propensity to spend fals as income rises - people generally should be able to obtain more credit as their income rises (hence reducing credit utiliization ratio), and pay down their debt, both of which improve credit scores.
OTHER THINGS BEING EQUAL, increased income enhances utilization ratio and thus credit score.
"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.
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.
Last edited by Jeo123; 09-19-2014 at 12:12 AM..
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