How will an increase in salary affect my credit score?
Friday, March 27th, 2009 at
6:05 am
kamui r asked:
I understand that credit score isn’t necessarily based on income but here’s my situation. I have about 16,000 in revolving debt with a 600 credit score. My yearly income has recently increased 10 fold which obviously improves my debt to income ratio. How long after this increase should I see improvements in my credit score and by how much. Also what triggers the credit bureaus that this increase in income has occurred?
I understand that credit score isn’t necessarily based on income but here’s my situation. I have about 16,000 in revolving debt with a 600 credit score. My yearly income has recently increased 10 fold which obviously improves my debt to income ratio. How long after this increase should I see improvements in my credit score and by how much. Also what triggers the credit bureaus that this increase in income has occurred?
Tagged with: Credit Bureaus • Credit Score • Increase In Salary
Filed under: Credit
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It won’t because your salary is not suppose to be reported to credit bureau. If you want to make your credit score high never exceed 70% of your credit limit on the credit cards and no matter what pay your bills in time.
Credit scores are based upon may things, but salary is not one of them. Using increased salary to pay down debt and more open credit will improve your score as will the length of time credit has been established.
Your salary will not be on your credit report What will help your credit score is paying off the credit you do owe on. Dave Ramsey provides good guidance how to do so. The plan is simple and will work wonders with your new salary. Congrats. Your credit score will improve about 30 to 60 days after you start reducing your debt and paying off the debt.
DO NOT GET NEW DEBT. It will not help your credit score. If you do get more debt have a valid reason for doing so other than anything to do with your credit report. Better yet, just save up for your next car, stereo, furniture etc.
Your income as nothing to do with your credit score and the credit bureaus do not keep track of your income. Your income should put you in yet a better position to make all your payments on time, which does affect your score. Paying off that revolving debt with all the money you are now making will also help.