By Teresa Dixon Murray, The Plain DealerJune 04, 2010, 5:30PMTeresa Dixon Murray writes this column in The Plain Dealer on Saturdays.
To reach her: moneymatters@plaind.com or 216-999-5263. she cannot assist everyone who contacts her.
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The Question: I have about $7,800 in credit card debt and have never, ever been late on a payment. I just got my credit score and was astounded that it’s barely over 700 (actually 710). I don’t understand how $7,800 in debt could be considered risky when my husband and I earn about $160,000 a year.

– R.P., Mayfield

The Answer: fair Isaac Corp., whose formula is used for the majority of credit score tabulations, says it doesn’t consider income (or debt compared to income). I say two things to that:

First, I’m not sure whether I believe it. The folks at fair Isaac and the three credit bureaus are a secretive bunch. They guard their information very closely, and I’m not talking about people’s private information, which obviously should be protected.

Remember, it was only in the last decade that fair Isaac — under threat of federal litigation — started allowing consumers to buy access to their own credit score for about $7. And it was only five years ago that the bureaus started offering consumers a copy of their report once a year at no charge after Congress mandated it.

Fair Isaac and the bureaus say income isn’t part of your score, but your reports do include the name of your employer and your occupation. might they estimate average salaries based on your occupation? it sure would be easy to do. Maybe they don’t want to expose themselves to accusations of discrimination if they disclosed exactly how scores are synthesized.

Second, if income isn’t considered, why not? it would make sense that $7,800 in credit card debt would be more risky for an entry-level cashier at a fast-food restaurant than it would be for a specialty surgeon with an income pushing seven figures.

In your case, it appears your problem is that your total credit limit on your two cards is $11,000. You’re using more than 70 percent of your available credit, and that’s considered risky.

The Question: I am over 70 1/2 but still working. Can I continue to purchase an annual Roth IRA, like I’ve been doing for the last 10 years, even though I’m over 70 1/2?

– M.O., Bay Village

The Answer: yes, you can. there is no age limit for contributing to a Roth IRA. however, people cannot contribute to a traditional, tax-deferred IRA after age 70 1/2.

There’s only one age issue that has affected you: For people 50 or older, the maximum contribution that can be made to a traditional or a Roth IRA is the smaller of $6,000 or the amount of your taxable compensation for 2010, according to the IRS. that amount can still be limited depending on your modified adjusted gross income.

For 2010, Roth IRA contributions aren’t allowed for people who are married filing jointly with MAGIs of $177,000 or more. The MAGI limit for single filers is $105,000. For more information, see IRS Publication 590.

Why isn't income considered in credit score calculation? Money Matters