Contrary to popular belief, you don’t need to be making a lot of money to maintain a good credit score. What most people don’t tell you is that you can be unemployed and still have a credit score of over 800. Growing your credit score actually comes down to five simple factors:
- Your payment history
- Your credit usage
- The age of your credit
- Your account mix
- The total number of inquiries made
If you’re trying to grow your credit score, here are three ways you can do so without an income. If you recently filed for unemployment, or are on the job hunt as a fresh graduate, these tips will help you attain long-term financial security.
Apply For A Secured Credit Card Or A Credit Builder Loan
Secure Credit Cards and Credit Builder Loans are effective ways to establish or re-establish your credit and maintain a high score. A credit builder loan is a borrowing tool that locks away anywhere between $500–1,500.
This money remains in your account until you pay the amount off, after which you can easily use the loan, and your payoff record is reported to the concerned credit bureaus.
On the other hand, in the case of a secured credit card, you will need to put down a deposit. In other words, your deposit becomes the amount up to which you can spend using your secured credit card.
The account that is holding your deposit protects your provider against purchases that aren’t paid off. Most secured cards also report your spending history to the concerned credit bureaus, helping you boost your credit score.
Apply For Becoming An Authorized User On A Family Members Credit Card Account
An authorized credit card user is a person who has permission to use someone’s credit card to make purchases, but isn’t legally responsible for paying the bill. In the case of personal cards, these users are generally family members; for example, a child, a spouse, parents, or even a sibling.
Becoming an authorized user on a responsible family member’s credit card account comes with many benefits. If this family member has had their card for at least one year, you can benefit from their credit age, good credit history, and their score.
Even though they will still be responsible for making the payments, by becoming an authorized user, you will also have a record and build your credit score.
Look Up On Your Payment Relief Options For Bills And Loans
Another great way to maintain a high credit score is to make sure you stay up-to-date and on top of any loan or bill payments. This includes looking up when your student loan grace period ends, so you can make the payments on time without missing any.
Something that helps build a good credit history is starting your loan payment as soon as possible when your grace payments end.
In case it’s not possible for you to make those payments on time, get in touch with your payment provider and work up a plan to accommodate your situation so that it doesn’t reflect negatively on your credit history.
On the lookout for a reliable credit repair service to help you re-establish your score? Get in touch with us today! Our credit repair consulting experts will work with you closely to understand your situation and create a custom solution to help you attain better financial stability.