have you ever noticed the adds for free credit reports, and it says the average American credit score is in the high 600's -like around 680? If many are struggling, how come the average credit score is pretty good? How can people afford to pay their bills? Wouldn't it stand to reason that credit scores would be lower? I am in no way a math whiz nor was I an economics major, that is why I am asking this question in responce to the many people who are going to call me an idiot because I do not know something.
2007-03-27 07:26:49 · 8 answers · asked by Anonymous in Politics & Government ➔ Politics
I know that a credit score reflects how you pay your bills not how much money you have, but if you had little money how ould you afford to pay you bills to maintain a 680 credit score, and if you where poor wouldn't you be the one to max out your card for food or to pay the electric bill or rent?
2007-03-27 07:54:50 · update #1
Also credit card companies give cards to just about anyone.
2007-03-27 07:56:42 · update #2
in my mind having a moderate credit score means you have debt but can still make the monthly payment... but you still have debt.... the better the economy for the average American.. the less debt individuals would have.
2007-03-27 07:37:12 · answer #1 · answered by pip 7 · 0⤊ 0⤋
Because credit scores do not reflect personal income. They also do not show savings on deposit or other investments. Don't confuse being able to pay the minimum payment on a credit card to being able to pay off the balance. Credit scores are more a less a statistical probability that a borrower will be able to pay back a loan and do not take into account personal net worth. The basic theory on credit score is past payment performance is the lead indicator for future payment performance. They are not meant to indicate the overall financial health of the borrower.
2007-03-27 07:38:25 · answer #2 · answered by CHARITY G 7 · 0⤊ 0⤋
First off...many American people are poor. That said ...poor has really nothing to do with your credit score. Your credit score is simply a reflection of how you keep your bills paid. Not a reflection of how much you spend. So if I am poor and have learned to manage my money well and live within my means I could theoretically still get a good score. If I am rich and just don't bother to pay my bills on time ...I could theroretically have a bad score.
2007-03-27 07:34:04 · answer #3 · answered by ? 6 · 2⤊ 1⤋
I have a pretty good credit score of 720 and I am pretty poor (I am a student after all), but I pay all of my bills on time and watch my debt. Hopefully, I'll be moving up in a few tax brackets by this summer, when I graduate, that way all of my frugal ways will pay off when it's time to buy my first house.
I don't know how it is with the rest of 'em though.
2007-03-27 07:31:55 · answer #4 · answered by ♥austingirl♥ 6 · 2⤊ 0⤋
Your credit score reflects on how you pay your bills, not how much money you have.
2007-03-27 07:33:22 · answer #5 · answered by surffsav 5 · 2⤊ 0⤋
Your credit has no longer something in any respect to do with the quantity of funds you have, that is all approximately paying your charges on time. If a "adverse" guy or woman would not charge plenty on the credit playing cards, and could pay off the month-to-month balace each and each month, their credit is going to be particularly extreme, assuming they make their different month-to-month funds swiftly.
2016-12-15 10:07:58 · answer #6 · answered by ? 4 · 0⤊ 0⤋
many have maxed out their available credit, or live paycheck to paycheck just to keep their credit in good standing. They are one tragedy, or one missed check away from being out on the streets. And you are speaking averages...many of the poor do not even have a credit report to speak of.
2007-03-27 07:33:13 · answer #7 · answered by hichefheidi 6 · 3⤊ 1⤋
Because you got an average, not facts.
2007-03-27 07:33:07 · answer #8 · answered by xenypoo 7 · 1⤊ 0⤋