DoingHomework wrote:Regardless of how much money you have, you need income in order to spend money. If you've got millions of dollars you will have income just from the interest you earn on it, unless of course you are really stupid and inefficient with your money.
Thanks for your reply. Some of what you said seems sensible, but the part I quoted above doesn't seem to make sense. You don't need income to spend money if you have liquid assets, such as a bank account. Nor will you have much interest relative income at today's rate if those liquid assets are in say a bank account.
If you have a million dollars in a bank account you can spend up to a million dollars right now even if your income is zero. It beats even an salary of a million dollars a year, because you could lose your job tomorrow and never get that million.
The best of the liquid bank accounts are paying about 1% right now (most banks a lot less). That means your million dollars will only earn at most about $10k/year.... not exactly a lot of income all by itself. So if that is your only source of income, I don't think you can get much credit on the income alone. It won't even cover basic living expenses. If your assets aren't taken into account, I doubt you could even get a credit card.