Many people believe that if they only had more money, they would not have to worry about credit. In fact, this is not true. Many people who have money - or at least have all the trappings of money, including cars and nice homes - in fact have terrible credit.

The secret of this is that it is not your income that decides whether you are a good credit risk or a bad one but rather how you handle money. You could be earning $7 per hour and still paying your bills and meeting your financial responsibilities - in which case you will have terrific credit.

You could also be earning $300 000 a year and be in terrible debt and financial shape due to unpaid bills and excessive debt. The best way to ensure that you have a good credit rating - no matter what your income - is to spend less than you earn. That means living below your means. If you have a very small income, you may need to live with roommates in order to keep costs down. If you have a medium-sized income, that may mean saving more and entertaining less.

You may be interested to note that your income is not a factor in determining your credit score. Although your past and current employers are listed on your credit report - and although lenders may be able to guess your financial status from your loan amounts - your income does not count.

This means that if you won the lottery today or suddenly inherited a large sum, your credit score would not increase. With your credit rating, what matters is how you manage your money, not how much you make.