In the era we live in today, you will be so lucky to land a job that pays you well. The ugly truth is that a huge fraction of the jobs that are up for grabs are great, but don’t pay so well. If you settle for one of them, then your odds of struggling financially and living from paycheck to paycheck are extremely high.
When you are in a challenging income bracket, your credit score becomes the victim in numerous occasions, which means that getting funding can be tough.
The pointers as presented below are for improving your credit score even when your income is low:
Know Your Score
The first step that you should take is to check your employer’s report knowing your score. Afterwards, you will start to work on the strategies to improve it. Besides, you should also be aware of your score as it can hinder you from doing business.
Avoid Making Late Payments
Not everyone like the idea of making payments every time. However, you should try as much as possible to stay away from making delayed payments on your credit cards.
Most people are not aware that their payment history decides almost a third of their overall score and is critical. If you wish to enhance your credit score, but have more debt than you can pay, you should contact your creditors to change your payment dates to immediately as soon as your salary lands in your account.
Ensure that those deductions are made before you spend a single cent. If you don’t, then you might end up spending the money on transport, food, rent, as well as other requirements.
Make Payment Reminders
Credit card payments play a vital role in determining your overall credit score. For this reason, you should set weekly or monthly reminders on your phone calendar to be on the safe side. Make sure that the reminder pops up three or four days before your payments are due and let it repeat until you are done with making the payments.
Don’t forget to put other bills on the reminder too. Avoid paying your rent late as well as utilities because they might show up on your credit score. If possible, ensure that you make these official payments two or three days in advance.
Don’t Close Old Accounts
If you wish to improve your credit score quickly, avoid eliminating old accounts as well as credit cards. The truth of the matter is that keeping your accounts active will assist you when it comes to building a positive credit score.
You can destroy the cards to avoid the temptation to use them unnecessarily. Keep repeating the process every time you get a new one.
File Accounts on Time
If you run a small business, then you should always ensure that you file your accounts before the deadline. The key reason is that the accounts might need extra time for processing, and filing them late might earn you a fine. If your accounts tell a good story, then lenders are more likely to give you the credit that you need.