I am in NO way saying that many Americans are not poor but?

Question

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.

I know the score does not show how much money you have, but if you where poor how could you afford to pay your bills on time? If you where poor, wouldnt you be the first one to max your card out on food, electric bill, rent? And, credit card companys give cards to just about anyone.

ooooh ty Leap.

Answer 1

First you have to remember how an average is even figured. You're taking all of the scores, adding together and then dividing by the number of scores. Here's an example:

(100+78+93+84+91+100+82+79)/8
= 88.375

So, the higher scores will bring the lower scores up. My job as a teacher has an average pay of $44, 430 in the state that I reside in. That's not how much I started at or even make now. My starting wage was $29,800. When you average this out, with the additonal wages from teachers all over the state , you then get the higher average wage.

You asked how people can afford to pay bills. The answer is, they have to. You have to pay your rent, electric, water, etc. or else you wind up evicted, in the dark and so on. When I was going to school, after paying all bills, I had $70 left over each month and this went for food, household items, fun and so on.

To answer your question about paying on time. Many don't, it's a paycheck to paycheck juggling act. For people on a limited income, in other words people who don't work, but live on SSI, disability, etc., they pay on time because they only have this set amount of income coming in. Once it's gone, it's gone. They pay everything on time and then struggle for the rest of the month.

Answer 2

Your credit score has nothing at all to do with the amount of money you have, it's all about paying your bills on time. If a "POOR" person doesn't charge much on the credit cards, and pays off the monthly balace each month, their credit score is going to be pretty high, assuming they make their other monthly payments in a timely fashion.

Answer 3

A lot of things in the credit score don't depend on earnings, but rather how quickly and dependably you pay your bills. For instance, did you know that returning library books on time increases your credit score?

Answer 4

I think that is a really good question.

I will be surprised if anyone truly answers it

You would certainly think the poor would have a harder time paying bills on time, because any unexpected expense would cause hardship.

maybe they budget better than most, LOL

Answer 5

they are poor BECAUSE they are paying thier bills. my score is around 700 but after i pay my rent and bills i only have like 200 for the month

Answer 6

Because they want to get your personal information and then share it with others.. Also, it stands to reason that those who obtain debt are better business for credit card companies who make the majority of their income from high APR's and finance charges.... More debt, more money...

Answer 7

The poor in our country have TVs, cell phones, DVD players, and get their hair done on a weekly basis. I think that poverty in America is comparable to middle class in amny other countries

Answer 8

your not an idiot - inquisitive does averages are not 100% reflective on the avereage american. there are many factores left out in that poll. so that's all

Answer 9

Thats for the people who even have credit...poor people usually don't have any kind of credit

Answer 10

I dont think their credit is that good, and the middle class are disappearing.