Credit Myth #4: Your Job and Income Contribute to Your Credit Score

After spending over 16 years in the mortgage lending industry I have identified seven myths that consumers commonly hold regarding their credit score.  Over the course of the next few weeks I am going to breakdown each myth and help you better understand how your credit scores are determined so that you can achieve a better outcome for your next loan application.

The fourth myth is that a person’s job and level of income contribute to their credit score.  This is not true.  A person’s job and/ or income are not data points included in the algorithm that determines a credit score.  Certainly higher incomes allow households to better afford their payments and make it less likely they would incur adverse events.  But, at the end of the day a person’s credit score is entirely based on their previous credit behavior.

As THIS ARTILCE points out the information that contributes to a person’s credit score are……

  • How length of a person’s credit history
  • If they have repaid their loans as agreed
  • If they have any missed payments which were 30+ days delinquent
  • How they are currently using debt (is the overall level of debt increasing, decreasing, or remaining stable?)
  • The mix of different types of credit accounts
  • If they have any past derogatory events like bankruptcies, foreclosures, short sales, judgements, or collections.
  • If they have recently made other credit inquiries

Please contact me today to learn more about your home loan options.

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.