Have you wondered if your income affects your credit score? Although income won’t directly impact your credit score, it could improve your chances of credit-building opportunities.
Whatever reason you might be if you’re struggling with poor credit and searching for ways to increase your income, we can help! Read on to find out how we can guide you to improve both credit and increase income.
Can I get a credit card with no income?
Obtaining a credit card with no income depends on if you have a co-signer or get a secured card. Typically, qualifying for a credit card with no income is going to be difficult. If you’re getting government benefits or alimony, you can consider a Credit Builder Loan from MoneyLion. Applying is quick and you can do it right from your MoneyLion mobile app.
First, you’ll need to link your primary bank account to your RoarMoney account. Then, MoneyLion will securely review your account for responsible financial habits to determine your eligibility.
Almost instantly, you’ll know if you’ve been approved for a competitive interest rate loan. Once approved, you’ll have access to some funds the same day and the rest is held for you in an interest-earning Credit Reserve account. As you make your monthly payments, we’ll report your payment history to all 3 credit bureaus. This will allow you to build your credit while making consistent payments over the 12-month loan term.
Most MoneyLion users have seen their credit score improve by 60 points within the first 60 days! Once you pay off your loan in full, your remaining funds are released to you, plus the interest you accrued. Banking, borrowing, and building credit.
Do I need to increase income to improve credit?
When lenders are reviewing your application for credit cards, loans, and mortgages, the bank will look at your ability to pay back the loan over a set period. This good debt can help boost your credit with on-time payments.
If the bank doesn’t believe you can pay them back due to lack of funds and poor bank history, your odds of an application denial are higher. When you have a lower debt-to-income ratio, the banks will view you as a lower risk level and typically approve you for more borrowing power.
If you’re looking to increase your income to help improve your credit, consider the following money-making opportunities:
- Ask for raise
- Search for a better paying job
- Get second job: uber, postmates, babysitting, dog walking, instacart
- Flip items and sell them-books, furniture, and collectibles
- Find a side hustle-network marketing, remote work, sell homemade goods
- Join a focus group
- Promote products on social media
PSA: Make sure you’re steadily depositing and paying taxes on cash payments so you aren’t sidelined during tax season.
Would loss of income impact credit?
Yes, loss of income could harm your credit score if you’re unable to pay your bills, resulting in negative credit reporting. Also, showing insufficient income could be a reason you’d get denied for a loan or credit card application.
Looking for supplemental cash to hold you over until next payday? Head over to MoneyLion and get a 0% interest advance with Instacash. RoarMoney account holders can instantly borrow up to $250 without monthly fees or a hard credit pull.
There are a few qualifications to be a suitable candidate for Instacash. You must be 18 years old, have steady income or deposits, have a bank account opened for at least 60 days and your account must have a positive balance.
Download the MoneyLion mobile app on iTunes or google play store and sign up for a RoarMoney account to get started today!
What if I have too much debt?
Having a healthy debt-to-income ratio is important when trying to improve your credit score. Your credit score will be lower if you have too much debt and not enough income.
The debt-to-income ratio (DTI) is all your monthly debts divided by your gross monthly income.
A 35% or less ratio is ideal and most potential lenders will evaluate your DTI to determine the risk associated with taking you on as a borrower. Consistently pay your monthly bills on time while paying off debt and the lower your DTI will be.
Improve Your Financial Wellness With MoneyLion
Increasing your income and credit score is possible with strategic effort and support from lenders like MoneyLion. For the big emergencies consider a Credit Builder Loan and borrow up to $1000. This affordable alternative comes with low-cost payments, weekly credit updates, and exclusive Instacash benefits while boosting your credit at the same time!