Permit me to elaborate. A person with a high income but zero net worth–let’s say a hot-shot salesman with a few years of good income, but lots of credit card debt could easily get a loan. Someone with the same credit score, lower income but good net worth from a history of spending less than their income for many years would be less likely to get a bank loan.
Yet the salesman’s income could drop for a variety of reasons while the frugal guy could handle adversity better–has liquidity, spends modestly, etc. Where’s the justice?
