From favourable loan terms to lower interest rates and other financial benefits, having an excellent credit score helps you take actionable steps in attaining financial goals and opportunities.
However, what happens when you find yourself in a situation where your income is high, but your credit score could be better?
In this blog post, we’ll explore the significance of a credit score, why it’s important to have a good one and provide practical tips on what you can do to improve your bad credit with a high income.
Understanding your credit score
Before we delve into our credit repair tips, let’s first understand what a credit score is and how it’s calculated. A credit score represents your creditworthiness, reflecting your ability to repay debts and manage other financial obligations. Lenders use this score to evaluate the risk associated with lending you money.
Your credit score also contains factors such as court judgements or if you have ever been accused of bankruptcy.
As your credit score reflects how well you handle money, it’s no surprise that having an excellent number can work in your favour. In the financial landscape, a higher credit score translates to:
- Lower interest rates on loans and other credit products, which helps you save money in the long run
- A greater pool of lenders willing to lend to you
- More likely to be approved on loan applications
You might be surprised to know that high income and bad credit scores are not that uncommon. Having a higher income doesn’t necessarily mean that you have good credit. Credit bureaus don’t care about your income when evaluating your credit score — as we said earlier, it’s about how you manage your money.
Need access to quick cash? You could be out of luck with traditional lenders
Finance One is a specialist lender that provides accessible and fast bad credit high income loans to everyday Australians. We believe no one’s financial past should hold them back from discovering financial freedom. We assess all our applicants, case by case, ensuring we provide a tailored solution.
Apply Online NowFour tips for improving your credit score on a high income
Now that you have a better understanding of why credit scores are a big deal in the finance world, it’s time to get to work. Check out our top four tips for boosting your credit score on a high income:
Review your most recent credit report
The first step in repairing your credit score is to obtain a free copy of your credit report to ensure there are no errors, black marks or other red flags. Some inconsistencies to watch for are incorrect personal information, inaccurate account details or fraudulent activity. If you encounter any errors on your credit report, ensure they are disputed immediately and removed from your file.
Pay bills on time
One of the easiest ways to show a lender positive money management is to pay your bills on time. An extensive list of late payments can significantly harm your credit score, not to mention hurt your wallet, so make an effort to keep on top of your bills. Set up payment reminders, automate payments or create a budget to ensure you meet your bill due dates.
Reduce your debt levels
High credit utilisation, which refers to using a large amount of your available credit, can be detrimental to your credit score. While obtaining credit can be useful in some areas, such as purchasing a home or a new car, failing to repay the loan or biting off more than you can chew could land your credit score in the red. It’s recommended to keep your credit utilisation below 30% to demonstrate responsible borrowing habits and maintain a realistic repayment schedule. Improve your credit score by paying off outstanding balances, prioritising high-interest debts and avoiding taking out new credit.
Consider financial advice
If your financial situation is too complex or overwhelming, professional assistance is available. A credit counsellor or credit repair agency can help you get your credit score back on track by working to remove any black marks or negotiating with your creditors on your behalf. They can also help you develop a debt repayment strategy and offer valuable insights on improving your credit score.
Can’t wait to secure funding? Finance One is here to help
While having a high income is undoubtedly an advantage and can help you live a comfortable lifestyle, a bad credit score can hinder your financial progress and limit your opportunities. Credit repair, although beneficial in the long run, can take months to several years to complete. And if you need access to quick cash, you could be out of luck with traditional lenders.
Finance One is a specialist lender that provides accessible and fast bad credit high income loans to everyday Australians. We believe no one’s financial past should hold them back from discovering financial freedom. We assess all our applicants, case by case, ensuring we provide a tailored solution.
Whether you need a high income bad credit car loan or personal loan, Finance One can help. We want to empower our customers and hold them accountable to learn from past money mistakes. But we’re also a responsible lender and will only provide a solution if we believe it’s within your means. Apply for one of our bad credit high income loans today or contact us at 1800 346 663 for more information.
Apply Online NowNormal lending criteria apply. Fees and charges are payable. Terms and conditions apply.
Finance One means:
Fin One Pty Ltd – ABN: 80 139 719 903
Australian Credit Licence: 387528
Disclaimer: The information above is of a general nature only and does not consider your personal objectives, financial situation or particular needs. You should consider seeking independent advice regarding your legal, financial, taxation or other needs, to check how the information relates to your particular circumstances. We do not accept responsibility for any loss arising from the use of, or reliance on, the information. All loan applications are subject to normal lending criteria. Fees and charges payable. Terms and conditions apply.
