Credit Bureaus Will Be Looking At Your Income

Just as banks are collecting more and more documentation so will the credit bureaus and credit card companies.  And they should.  The housing bubble in my opinion was created due to lax underwriting standards and not verifying income. 

I have been saying for months now that I think what is more important than your credit score is your debt to income ratio and your assets.  I understand as much as the next that your credit score shows your willingness to pay but at the same time I have seen many credit reports where someone with a lot of debt has a better credit score than someone with very little debt.  That is where your income plays a part.  And it looks like someone is starting to agree with me.

“Credit scores, which have been long a key factor in whether you get a loan or a credit card, may not be sufficient for many future credit decisions. With the new credit-card law requiring credit-card issuers to consider a customer’s ability to pay before opening new accounts, the Fed had proposed requiring people to report their own income or assets when applying for credit.”

http://online.wsj.com/article/SB10001424052748703672104574654211904801106.html?mod=rss_PJ_Main

How To Beat The Credit Bureaus

Here is a great article on fixing your credit

http://www.kiplinger.com/magazine/archives/2009/05/how-i-beat-credit-bureaus.html