{"id":5924,"date":"2014-08-20T14:58:13","date_gmt":"2014-08-20T09:28:13","guid":{"rendered":"https:\/\/blog.fundsindia.com\/blog\/?p=5924"},"modified":"2019-06-06T19:26:02","modified_gmt":"2019-06-06T13:56:02","slug":"why-your-income-is-not-a-part-of-your-credit-score","status":"publish","type":"post","link":"https:\/\/fundsindia.com\/blog\/personal-finance\/why-your-income-is-not-a-part-of-your-credit-score\/5924","title":{"rendered":"Why your income is not a part of your credit score"},"content":{"rendered":"

This article is a contribution towards our financial literacy series. It has been written by a specialist in credit and debt counseling – Satish Mehta, Founder and Director of www.credexpert.in.<\/div> <\/em><\/p>\n

\"money\"<\/a>Race, religion, gender, nationality, marital status and employment history do not impact credit scores. It is because these factors do not help in assessing the credit worthiness of an individual. In several countries, it is not legal to use these factors to calculate credit scores.<\/p>\n

There is another much-debated factor – income. Yes, income does not impact your credit score; however, it could impact your \u201ccredit worthiness.\u201d Whilst the bank would be interested in knowing your income in your loan application form, it is not included in the credit score calculation. The bank would use your income to appraise your credit worthiness and will take an informed decision of approving or rejecting your loan application.<\/p>\n

Buy<\/span> 24 Karat Gold Online <\/span><\/a><\/div>\n

This is because the high income of an individual does not make him \/ her less risky. Similarly, low income does not make him \/ her more risky. Credit behaviour of an individual is \u201cindependent\u201d of income. Instead, banks use income for the calculation of ratios like:<\/p>\n