Finimpact

Frequently Asked Questions(FAQ)

Can increasing my income improve my credit score?

Getting a raise or taking on a side hustle won’t change your credit score, but you can put that additional money to work. You can use your higher income to pay down debt, keep up with your bills, and lower your credit utilization. Some of the best ways to increase your income include asking for a promotion, taking on a side hustle, negotiating a raise, or investing in passive income streams such as rental properties or dividend-paying stocks.

What is a good credit score?

The FICO score is broken out into five categories:

Excellent800 to 850
Very Good740 to 799
Good670 to 739
Fair580 to 669
Poor300 to 579

However, although a higher income correlates with higher credit scores, there is no direct connection. The best thing you can do to achieve a good or better credit score is pay your bills on time, be mindful of how much you spend, keep your utilization at 30% or below, and maintain a healthy mix of credit. 

What other information doesn’t directly affect your credit score?

Your credit score is generally based on your credit history and financial behavior, rather than personal characteristics unrelated to your financial situation. However, the following factors do not impact your credit score:

  • Your race, religion, or gender
  • Your employment status 
  • Your marital status (getting married or divorced)
  • Paying with a debit card
  • Your savings account balance
  • Getting denied for a credit application
  • Using a credit counseling service 

About the Authors

Ann Schreiber

Written by: Ann Schreiber

Seasoned Copywriter & Content Marketer

Ann has been a marketer and a content writer for over 20 years. She worked for financial institutions such as FICO, Experian, and BlueChip Financial as a director of content and brand marketing.

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