• stoly@lemmy.world
    link
    fedilink
    English
    arrow-up
    5
    ·
    8 months ago

    The system was built around the needs of the upper middle class and it suits them just fine. Someone earning $500k+ per year will have a whole lot of credit cards, loans, mortgages, etc. That diversity helps them generate the scores they need.

    • Telodzrum@lemmy.world
      link
      fedilink
      English
      arrow-up
      4
      ·
      edit-2
      8 months ago

      $500k/yr. isn’t “upper middle class.” That annual income is in the 99th percentile the US; it’s literally a 1%er.

    • Kit@lemmy.blahaj.zone
      link
      fedilink
      English
      arrow-up
      2
      ·
      8 months ago

      You’re spot on. I do want to point out, though, that upper middle class in the US is a household income of 90k to 150k. 500k would be solidly upper class. My apologies if you’re referring to a different country.

      • stoly@lemmy.world
        link
        fedilink
        English
        arrow-up
        3
        ·
        8 months ago

        I suspect that those numbers may be higher now, though. $90k won’t buy you a house in any sizeable city, you really need to be at the $150l+ level. I take your point that $500k may have been a bit of an overreach in my original comment.

        • Kit@lemmy.blahaj.zone
          link
          fedilink
          English
          arrow-up
          1
          ·
          edit-2
          8 months ago

          Upper-middle class and upper class aren’t defined by spending power. It’s based upon the average wage of all earners.

          Upper middle class: The top 15% to 20% of earners
          Upper class: The top 15% of earners