Practical Stupidity: Credit Card Edition

Speaking of credit card companies, Yahoo Finance gives a little insight as to how credit scores are calculated, and what you can do to swing the numbers in your favor.  Some common theories, such as using cash or cutting up cards that have a high balance can backfire if not done in the right way and for the right reasons.

It's good reading, and here is the one that really surprised me:

Myth: Your Income Affects Your Score

People tend to assume that the more money they make, the higher their credit score will be, but that’s not the case. While it’s true your income may affect your ability to pay your bills on time, it has no bearing on yourcredit score, Albary says.

Your income can, however, influence a lender’s decision to approve you for a loan. This is because lenders often compare the income you’ve listed on your application to the debts listed on your credit report in an attempt to judge your ability to make monthly payments.