Interesting. Even though it states "average credit score" this sounds like a presumption based on cost and assumed income = higher scores. I think DTI can easily skew this along with different priorities. I know someone with fair to good credit, makes a moderate income but prefers to drive an expensive car than invest or buy a home. He lives in on old house left to him by his mom. Nice Porsche in front of a paid for, somewhat run down home; no offense, just true. Most of his income goes to his car. (he has the key chain and not sure where he got the sneakers with Porsche on them
)
I drive an Acura (used by the way) because I refuse to invest too much in a vehicle and prefer to save and build my portfolio.
The article makes reference to "Tesla, which has a higher monthly premium". If you have limited expense, and in the case of the guy I know, he did save to pay a hefty down payment, then one can afford that higher monthly premium.
@clevo4040 wrote:There is definitely a strong positive correlation between higher income and credit scores. A similar correlation exists between Tesla owners and income.
Hah, I've met billionaires that had worse reports and scores than what I started with.
There's admittedly a trend between higher income and not defaulting I'd argue, but in terms of credit scoring with all the lates / collections / other things which can significantly impact credit, it simply doesn't follow that higher income = higher credit score.
If you control for the fact that the lowest end of the social economic strata is likely unbanked or underbanked (because of course if you have no positive credit you are at null or worse) I think you will find that your premise that higher income correlates with higher credit score to be patently false.
Middle and mass affluent classes care about money and credit; however, the truly wealthy don’t look at it in the same manner, namely credit is irrelevant.
I think you’ll find in virtually everything that someone who cares about a thing will take better care of it than someone who doesn’t... nearly regardless of what we are talking about and credit is no exception.
I have talked to individuals that drop as much as I have in my brokerage account on new cars, cash, every year... to say nothing of the boats and race horses or sports teams: personal credit is basically meaningless to them. We talk about cash flow underwriting in the economic class I live in as being the future, but it’s nothing new when talking the financial elite strata.
I’d bet third and forth generation money you’d see similar trends: it’s just a different time than even 40 years ago when it comes to credit and responsible use of it.
Middle and mass affluent classes care about money and credit; however, the truly wealthy don’t look at it in the same manner, namely credit is irrelevant.
I think you’ll find in virtually everything that someone who cares about a thing will take better care of it than someone who doesn’t... nearly regardless of what we are talking about and credit is no exception.
I have talked to individuals that drop as much as I have in my brokerage account on new cars, cash, every year... to say nothing of the boats and race horses or sports teams: personal credit is basically meaningless to them. We talk about cash flow underwriting in the economic class I live in as being the future, but it’s nothing new when talking the financial elite strata.
I’d bet third and forth generation money you’d see similar trends: it’s just a different time than even 40 years ago when it comes to credit and responsible use of it.