Finding Those Credit Wins

Here’s what your credit cards reveal about your socio-economic status

By Sariah Savvy Tips

 

Look beyond the surface

Many people automatically assume if someone has a lot of credit cards or high-end luxury cards, they make a six-figure salary or they must be a millionaire.  When we watch television, having a high salary or high net worth is often associated with dining at fine restaurants, spending the night at five-star hotels, and going on shopping sprees at luxury department stores.  After all, only high-income earners or wealthy people can afford these things.  Well, that is merely an assumption based on how we see it portrayed through the media, or perhaps we have been told this is how it is. However, once you look beyond the surface things can become vastly different.  The interior carries a far greater weight than the exterior in many situations and this is one of them.

If someone carries a credit card from a low to mid-tier retailer, it is often assumed that individual probably lives paycheck to paycheck, or they are middle class.  Does middle class exist or is it an illusion?  That topic is for another day.  We may also assume they do menial, blue collar work, or have a relaxing office job, but NEVER the corner office.  It is amazing how we make assumptions about people.  Why or how are these assumptions formed?  No matter what your assumption is, I call tell you it is the paycheck to paycheck & middle-income wage earners that keep these hotels, restaurants and retail stores doors opened.

 

Credit scores are classless

When it comes to credit scores, unfortunately, many people don’t fully understand what it means or how it impacts them.  A credit score is a way to predict the likelihood of one paying back a loan on time.  The higher your credit score, the likelihood of repaying debt back is high.  The lower your credit score, it indicates you have a low chance of repaying the debt back on time if at all.

As you can see, it has nothing to do with your socio-economic class. If you earn $25,000 a year and pay your debt back on time, you will have a higher credit score and will be able to qualify for high-end retail store cards even if you can’t really afford to shop there when they are having their best sale day. It is true that broke people sometimes shop at high-end retailers, dine at fine restaurants, or have a sleep over at an exquisite hotel from time to time because they can put it on a credit card.  And there is nothing wrong with that if you don’t go overboard.  Broke people deserve to treat themselves at least one time out of a year.

Many wealthy people and high-income earners shop at mid-tier and discount retailers.  How else do you think they are able to keep their wealth?  The next time you see someone carrying a shopping bag from a high-end retailer just know that person may really be well off financially, a working or middle-income earner just treating themselves, or someone with a self-esteem issue & needs to feel good, win & influence people by flashing an illusion of wealth. 

I know someone who makes $60,000 a year and got an offer for the American Express Platinum credit card.  This card comes with a $695 annual fee, but a lot of perks.  It is great for someone who travels a lot.  The reason I bring this up is because you don’t have to have a large salary like $250,000 to pre-qualify for a high-end credit card like this.  You just need a good credit score.  When applying for a card, be sure you can afford it, meaning the fees & be responsible with it because this is your ticket to getting the things that you may not be able to pay cash for, like a house someday.