Is Income a Factor in the Credit Scores Rankings?

The short answer is no, credit scores rankings do not factor your income or salary into your score.

Your credit score is a powerful number that can impact whether you get a car, a house, and even a job. The score considers five types of information from your credit report: your payment history, your level of debt, age of credit history, types of credit, and recent applications for credit.

Your credit score is calculated based only on information that’s in your credit report. Even though your current and previous jobs are listed on your credit report, your salary and income aren’t listed and aren’t factored into your credit score. While the amount of money you make doesn’t directly factor into your credit score, it could through your payment habits. For example, if you don’t make enough money to pay your bills, you might miss payments.

Your income doesn’t influence your credit score, but it can impact your ability to get a credit card or loan. Banks typically ask for your income on their applications. As part of the application approval process, they often compare your income to your level of debt. If your debt is high relative to your income or if you don’t meet the bank’s requirements for the requested loan amount, your application could be denied.

Banks often have their own in-house credit scoring systems that may include your income. These proprietary credit scoring systems are developed for a specific bank’s use and the scores aren’t available for consumer purchase. If the application requests your income, it’s safe to assume your income will be considered for the credit card or loan.