Credit Score: Does earning more lead to a better credit score? Here's the truth..

Credit scores are primarily determined by payment history, outstanding balances, length of credit history, new credit, and types of credit. Higher-income individuals have greater borrowing capacity, which can indirectly improve their credit score.

Despite high incomes, failing to repay loans on time, overusing credit card limits, or closing old credit accounts can result in a lower credit score.

A person with a lower income can maintain a high credit score if they remain disciplined with payments and manage their credit properly.

A person should borrow in proportion to their income. For example, a person with a higher income can take out a higher credit limit, but should not use more than 30% of the total limit. Lower credit is easier to repay.

Many credit card users take out new loans based on their projected future income, which can be risky.

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