You can grow your credit & credit score with or without having a lot of money or earning a hefty income.
Here are the 3 steps which can help grow your credit score, even without an income:
- Become an authorized user on a reliable family member’s credit card
- Apply for a secure credit card or credit building loan
- Learn the payment relief options for education loans
If you want to check your credit score and understand factors which are influencing your credit, then seek a free credit score check-up.
It’s not a valid argument to say that a great credit score constitutes of lots of money. The fact is that you can live in peanuts and still have an 800 digit credit score. Everything narrows down to 5 essential factors:
- payment history
- credit usage
- credit age
- account mix
- number of inquiries
If you have currently lost your job or haven’t been able to find a good compensation as a fresher, then there are ways to ensure & maintain a reasonable credit score. The steps we are talking about do not need a lot of money, yet depict your financial stability as an individual.
- Become an authorized user on a reliable family member’s credit card
Your credit history for the past one year can help you stabilize your credit history, provided you’ve taken care of time payment and credit usage. Ofcourse, the primary cardholder has the first responsibility to make all payments, but you can also benefit from their credit building strategies.
- Apply for a secure credit card or credit building loan
Get hold of a secure credit card which can effectively help in building your creditworthiness. You’ll just have to make an upfront deposit that becomes your credit limit on that card. You can essentially end up repaying money back to you while growing your credit and payment history.
- Learn the payment relief options for education loans
If you ever took an education loan, check out when your due payment date expires. This will help you to keep paying your EMIs on time, without a miss. Making repayments as soon as you can towards the grace period is a good way to create a smooth payment history. However, if you’re unable to make payments due to insufficient bank balances, then connect with your lender to check for payment relief options. A few lenders also offer to work on a payment plan with you which fits your needs essentially. This will save you from missed EMIs & considerable drop in your score. Since, your payment history makes 35% of your credit score, so timely payments or lender approved deferments are extremely crucial to build good credit score.
Summary:
Maintaining and improving your credit score doesn’t essentially depend on your income. It’s totally upto you to save your hard earned money for future purposes & create more income opportunities for yourself. This is surely get your job done right even when you’re employed.