Do rich people have better credit than you?

3:03 AM better, Credit, people No Comments

Business Week | By Christine DiGangi, Credit.com

Not necessarily. Having lots of money and having good money management don't always go hand-in-hand.

Your credit score isn’t about how much money you have. It’s about how you manage it.

So in answer to this question: No, rich people do not necessarily have better credit than you do. Having a lot of money can be helpful, but it is in no way the secret to a high credit score.

You can be a millionaire and have a terrible credit score. In fact, your income has no direct effect on your credit scores, because they’re based on credit reports, which don’t include income information.

The most important aspects of your financial behavior factored into your credit scores are payment history and debt usage. Debt usage refers to how much of your available credit you use, so if you have a $2,000 credit limit, you want to keep your balance below $600, or at a 30% credit utilization rate. The lower that percentage, the better.

Here’s where income could help: Having more cash at hand means you could qualify for a higher credit limit, meaning you have more room to spend before hitting that 30% utilization threshold. Of course, having money might mean you wouldn’t have trouble paying your bills, which is also important.

Looking at the big picture, states with higher median incomes tend to have higher average credit scores. Household income estimates for 2012 from the U.S. Census Bureau and average VantageScores gathered from Experian-Oliver Wyman Market Intelligence Reports and Experian’s IntelliView tool show a loose correlation between income and credit scores, but there are some notable exceptions. Maryland, which has the highest median income, isn’t even in the top half of states with the highest average credit scores. The VantageScore data (VantageScore is one of the common credit scoring models used by lenders) was pulled from the second quarter of 2013, the most recent data available.

But knowing what you can afford and budgeting for responsible credit card use means you can pay your bills and use a low amount of your available credit, which will improve your credit scores. You can see how your habits have affected your credit scores by looking at your personal Credit Report Card — it’s free and shows what areas of your credit portfolio are hurting or helping your scores. No matter the number on your paycheck, good credit reflects good behavior.

“There are a surprisingly large number of rich deadbeats,” said Rod Griffin, Experian director of public education. He said he’s been asked by consumers with a lot of money why their credit scores are terrible: “It’s because you’re not getting your credit card bill paid on time, or you’re not paying your utility bills on time, and you’re maxing out the credit cards that you have.”

While income has no impact on your credit scores, it comes into play when you’re applying for loans or credit cards. Lenders consider your ability to repay the debt, which is why you’re asked for your income on loan applications. Still, having a chunk of disposable income on your application may not overpower a history of late payments and maxed out credit cards.

“Regardless of your income or assets, the way that you use your credit will determine whether or not you have good credit scores and whether or not you’re a good credit risk,” Griffin said.

Improving your credit score requires a long-term plan, but there are small steps you can take toward better numbers. The biggest thing is to get started on making changes.

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Japan on business people: flakes suits, save energy

3:01 PM Business, energy, flakes, Japan, people, suits No Comments

TOKYO - the Japanese Government wants to become the country's suit-loving employees fat this summer. Ditch the stuffy jacket and tie. And for the most of a country with a view to a power crunch, light and casual.

Japan's "super cool biz" campaign began Wednesday with a Government-sponsored fashion show with outfits for the Office yet cool the stifling heat withstand enough.

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This summer may be particularly brutal. The loss of the nuclear power plant in Fukushima Dai-Ichi, which crippled tsunami on 11 March, means that electricity supply in the capital of the nation, Tokyo, could be short during particularly hot days.

So power failures, the Government of companies and Government offices calls to reduce power consumption by 15 percent. It wants to limit companies set air conditioning and a warm 28 degrees Celsius (82 degrees Fahrenheit) temperatures.

The idea is not new. "Cool biz" was introduced in 2005 by the Environment Minister Yuriko Koike. The campaign was part of efforts to combat global warming.

But with Japan use of an ongoing nuclear crisis and after an earthquake of magnitude 9.0 and tsunami, officials, they cool biz a step further had to take this year.

"If we cool biz in 2005 started, people said it was undignified and sloppy," Koike said in the fashion show at a Tokyo department store instead. "But this is now in its sixth year, and people have become accustomed, it."

Surveys of Cabinet Office show that company to jump on board are. In a nationwide survey 2009, 57 percent of the 2,000 respondents, reported that cool biz in their workplaces been implemented. The figure was 47 percent two years earlier and less than one-third 2005.

So what is biz different with super cool?

First, the dress code. , Are Aloha shirts and sneakers now according to the Ministry of environment guidelines relaxed Polo shirts. Jeans and sandals are OK under certain circumstances.

Men can even imagine wearing a fan or try a few narrow pedal was pushers as a model, but if such fashion would extreme actually catch on is another thing.

In particular lack the Ministry of the environment are specific rules for women dress code. Despite the failure Wednesday fashion show ensembles for women like also.

Khaki, white trousers and airy polyester all are apparently acceptable to clothes.

For retailers to sell casual wear Super could biz cool after the disaster, a necessary boost to offer consumers again to expenditure. Chains such as fast retailing the UNIQLO have stored in anticipation of strong demand, Polo shirts and chinos.

Also spur Wheelback energy-saving creativity with the campaign hope officials both in and outside the Office. In order to counter the heat, suggests the Ministry with gel leaves or eat food, which cool the body. It encourages staff to limit overtime, consider working from home, if necessary, and take two weeks of vacation.

"This is to survive not only a temporary measure in this summer," said Ryu Matsumoto, who joined the current Minister for the environment, the Koike and two other predecessors at the event. "Change of life in Japan which is a great event and people's lifestyles are."

Inspiration can offer Japan's tropical southern islands of Okinawa.

On the catwalk models "Kariyushi" moved shirts, Okinawa's version of the Aloha shirt. Worn untucked, they are lightweight and feature colorful prints of the traditional island designs.

Kariyushi shirts are often from people in Okinawa in the summer, worn in formal settings such as business and political meetings. In the year 2000, the Kariyushi shirt jumped on the global stage if they heads of State, including the former President Bill Clinton, were given during the Group of eight Okinawa Summit.

For the company, really the Kariyushi shirt and super cool to embrace biz, leadership from the top, must come, Keiichi said in amines, a former Governor of Okinawa, attended the fashion show.

"It is important for people with standing in the society, you are", he said the Japanese company, referring to the hierarchical nature.

Leaders of the country, but other things may have had on her mind Wednesday.

Prime Minister Naoto Kan was a traditional dark suit in the Parliament as he fire from opposition lawmakers demand his resignation faced. Opposition leader Sadakazu Tanigaki was also a suit, although to be fair, it was an unusually cold day for June.

Copyright 2011, the associated press. All rights reserved. This material may not be published, broadcast, rewritten or distributed.

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