RobertEG wrote:I think it is being a bit naive to state that income has no relationshop to ability tp pay debt... it certanly does. Paying requires both abiliity and willingness. I think a primary reason why income is not included in FICO scores is due more to the fact that income data is something that they simply do not have the ability to collect and update regularly. Just try to secure a home loan without disclosure of income, and you will realize that it does count. FICO is thus not an overall measure of try credit worthiness, but more simply a historical snapshot of how you have paid debt in the fairly recent past.
bobkelly wrote:The higher earning income individual has more disposible income, therefore more of an ability to repay the $2500 loan in this example.
You seem to be the only one who don't get this--or perhaps Mom shoulda put you to bed earlier as you have soccer practice in the morning.
Now all we have to do is educate the supposedly educated and 'splain it to lenders who issued loans based on FICOs alone.I cannot help but chuckle at the similarity of the two statements below."How can I be overdrawn? I still have checks.""How can the loan be in default? We pulled the guys credit?"