Boosting your Credit Score without a Viable Source of Income: How it Can be Done Successfully

Even though the global economy began to embark on an upward curve towards the end of 2013, it future growth remains mired in uncertainty and instability. Despite this, the sense of negativity that surrounds the economy is having a detrimental effect on citizens and restricting their long term financial ambitions.

More specifically, individuals who are unemployed have little incentive to plan for their future or improve their existing credit score. Even without a viable source of income, however, there remains ample opportunity for you to boost your credit rating and lay the foundations for a brighter fiscal future.

Boosting your Credit Score: How to do it in Times of Hardship

With this in mind, what practical steps can you take to boost your credit score without a regular source of income? Give consideration to the following points: -

Learn to Use Credit Responsibly

If you are encumbered with debt, then the most natural response is to eliminate all lines of credit completely. This is counter-productive, however, as maintaining viable and nil-balance accounts can actively boost your credit score. This is so long as you commit to using available credit responsibly, by spending only a set amount of capital that you can easily afford to repay. Over time, you will be able to build a series of positive credit transactions and improve your rating considerably.

Engage in Honest Communication with Creditors

With no source of income, you may decide to ignore correspondence from creditors and refrain from addressing any outstanding financial liability. This should be avoided, primarily because it is likely to add missed payment charges to your account and trigger the vast accruement of interest. Instead, you should look to contact your creditors and explain your circumstances to them, citing your lack of income as the main reason for the failure to pay. In some instances, this approach may even allow you to freeze the interest on your debt until you are able to resume repayments.

Be Careful When Applying for Further Credit

Whether you are forced to live from personal savings or welfare payments when unemployed, there is always a temptation to seek out additional lines of credit. While this may provide short term, financial relief, however, it does little to boost your longer term credit rating. You should therefore be careful about the types of credit that you apply for, and ensure that any loans you decide to undertake are easily repayable. Although accepting and repaying a small loan can boost your credit score, any failed or late payments will only add to your woes.

The Last Word

While improving your credit rating is extremely difficult without a reliable source of regular income, it is not entirely impossible. With a positive outlook and ability to think outside of your own circumstances, you can first consolidate your score and then gradually look to build on it. By adopting this philosophy, it is possible to reverse your financial fortunes and establish a platform from which to eradicate debt once you have earned gainful employment. To gain a further advatnage, you should consider reviewing the best bank accounts and providers before opening a high yield savings account.