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How can i maintain a resonable credit score when my pay has went down???????????

New Member

How can i maintain a resonable credit score when my pay has went down???????????

hello! i am a newbe and really understanding alot.as many of us are loseing our jobs,im ust thankful to be still holding on. i say that losely! i have went from makeing $15 hrly to $7hrly! how do i try to maintain my credit scrore of 625 or perhaps raise it? i have 5 yrs left on my home and 4 yrs left on my vehicle.i have some writeoffs on my credit but this will be my 7th yr. so will they be comeing off?any advice given will be greatly appreciated!!!!!!!!!!!!!!!!!

Message 1 of 9
8 REPLIES
New Member

Re: How can i maintain a resonable credit score when my pay has went down???????????

Try very very hard.  An option may be to look into getting a balance transfer card that you can use to try and pay down credit card bills.  However, paying off your martgage is the most important.
Message 2 of 9
Super Contributor

Re: How can i maintain a resonable credit score when my pay has went down???????????

The 2 things that you can control on your credit score are CC util and paying on time.  FICO scores dont take income into account so the best thing you can do to raise your scores is to keep CC util low and pay on time.  Paying off your mortgage and infact any installment loan is always a good idea but it wont raise your FICO score.

12/08/2017 FICO: EQ 843 TU 849 EX 844
Message 3 of 9
Moderator Emerita

Re: How can i maintain a resonable credit score when my pay has went down???????????

--and paying off the loan and mortgage might actually hurt your score, in terms of reducing your credit mix. Don't get a loan just to make the FICO gods happy; just do so if it makes financial sense for you.

Do you have any CC debt? The best thing that you can do for your scores and for your peace of mind is to get all CC debt to $0 and just use the cards as if they were debit cards. Keep paying them off throughout the month and $0 them out. When your income has been slashed, you don't want to be beholden to anyone, especially a credit card company. That will also be the best thing that you can do for your scores.

If you have any money left over, I'd stick it in savings rather than accelerate the loan and mortgage payoffs. This is definitely a good time to have some mad money handy.

Hang in there!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 4 of 9
Established Contributor

Re: How can i maintain a resonable credit score when my pay has went down???????????

You must change your lifestyle. As you said in your post, your income has been cut in half, so, you need a new budget based on your new income.

 

Determine those items that you must have to live, get rid of everything else. Are you married? Kids?

 

If it's just you how about movin' back with Mom/Dad? Put home on the market. While it's in the process of selling you can minimize costs for utilities.

 

Get rid of cell phones, etc.

FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738
EQ=735
TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.
EX- 689 EQ- 739 TU- 739
Message 5 of 9
Moderator Emerita

Re: How can i maintain a resonable credit score when my pay has went down???????????


jackg wrote:

You must change your lifestyle. As you said in your post, your income has been cut in half, so, you need a new budget based on your new income.

 

Determine those items that you must have to live, get rid of everything else. Are you married? Kids?

 

If it's just you how about movin' back with Mom/Dad? Put home on the market. While it's in the process of selling you can minimize costs for utilities.

 

Get rid of cell phones, etc.



lol, I know you didn't mean this, but this reads so much like a suggestion to put the wife and kiddies on a raft and float them down the river! Smiley Very Happy

But these are great suggestions.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 6 of 9
Community Leader
Epic Contributor

Re: How can i maintain a resonable credit score when my pay has went down???????????

If things get really tight, let your %util go up, and only make miniumum payments.  % util has no memory, so you can recover from that without historical damage.  Your FICO may drop temporarily, but so what?  I dont think you are considering applying for new credit now, so what yo0u want to do is protect your long term credit file, and not concentrate on your short term FICO.  The important thing is to avoid any late payments, as these will haunt you for 7 years.
Message 7 of 9
New Visitor

Re: How can i maintain a resonable credit score when my pay has went down???????????

I suggest that you bring your lunch to work everyday.  We can easily spend at least 10.00 a day/five days a week which equals 200.00 montly.  You can save approx. 200.00 a month minus your grocery bill for the month.  I have been doing this consistently for about a mth.  Try it, you will be amazed at how much money you can save in a year. 

Message 8 of 9
Highlighted
Moderator Emeritus

Re: How can i maintain a resonable credit score when my pay has went down???????????


Wendy50 wrote:

I suggest that you bring your lunch to work everyday.  We can easily spend at least 10.00 a day/five days a week which equals 200.00 montly.  You can save approx. 200.00 a month minus your grocery bill for the month.  I have been doing this consistently for about a mth.  Try it, you will be amazed at how much money you can save in a year. 


+1. Great advice. 

 

As an FYI to anyone else who might stumble upon this thread, OP hasn't logged on in over 3 yrs. Hopefully everything worked out for OP.

Message 9 of 9