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Does my income affect my credit profile?

Updated over 3 months ago

Yes and no.

Your income doesn't affect the TransUnion Credit Score you see in Credit Club as that's focused purely on the credit products you have and how you manage them.

This is a big failing of credit scores in general, and leads to people saying things like "I've got a perfect credit score, why was I turned down for that loan / credit card?"

And sometimes the reason you're turned down will be due to your income. The lender won't lend if it thinks you don't have enough spare cash each month to pay it back.

That's why MSE's Credit Club gives you your Affordability Score as well as your credit score. This is a measure of how lenders will see you based on three factors:

  • Your credit utilisation - how much of the credit available to you you're using.

  • Your debt-to-income ratio - how much debt you have compared with your income

  • Your disposable income - this mimics lenders' assumptions of how much disposable income you have each month

We then combine your TransUnion Credit Score and your MSE Affordability Score (as well as prevailing market conditions) in to your MSE Credit Eligibility Rating to give you an overall view of how lenders see you and how they'll likely assess your chances of getting credit.

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