bobkelly wrote:Can anyone explain why one's income has no bearing on a FICO score? Seems to me that this plays a big part in creditworthiness, yet FICO doesn't use income (or net worth) as part of their formula in creating a FICO score.
That is stereotyping. It gets magnified to the media when it happens. But most millionaire rappers are good money managers or have good accountants. But like many of us, some rappers dont have credit knowledge till someone explains it to them. So all at once you have all of this money. Your first instinct is to spend on ever dreamed of. Then your next album does terrible. You have spent all of youor savings and now you are up to your armpits in debt. You owe on your $200,000 on you AMX BLack and you income from your album is 15,000. BK is your best option. I know this from my brother who works in the music industry with several famous musicians(not just rappers).
atlantaman wrote:ask any rapper?
Professionals in the rap music industry. Millions in income, terrible credit, bankruptcies, but lots and lots of income. lol.
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 made a career change and took a 75% cut in pay. I still pay my bills on time and keep util low. My FICO scores didn't drop; why should they?
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.