image of clipboard and car to represent improving credit score and getting an online title pawn

How To Improve Your Credit Score On A Low Income

Let Georgia Auto Pawn Inc. show you how to improve your credit score even if you have a low income! In this guide, you’ll first learn how your credit score is calculated. Then, you’ll discover a handful of helpful ways to raise your score over time.

However, financial emergencies can arise when you're trying to repair your credit. Emergency loans can help when you need fast cash to fund an unexpected expense, so we'll explore how an online title pawn from Georgia Auto Pawn, Inc. 

How Can You Improve Your Credit Score On A Low Income?

Learning how to improve your credit score is essential when you have a low income. From discovering how to calculate your credit score to creating strategies to pay your bills on time, let's discuss how you repair your credit score today!

How Are Credit Scores Are Calculated?

Suppose you’ve chosen to improve your credit score despite having a low income. That’s an excellent decision, as it’ll improve your overall financial health.

But there’s one thing you must understand: the process won’t happen overnight. That’s why it’s essential to know how credit scores are calculated so you can take the proper steps and stay motivated in the long run.

woman at computer tries to improve credit score with low income with text How To Improve Your Credit Score On A Low Income

Your credit score is calculated by considering the following:

  • Payment history: As most people know, payment history is a big part of your credit score. That record shows whether or not you make your payments on time and if you’ve ever done so after a deadline.
  • Credit utilization: Some people don’t know that their credit utilization rate also matters. Simply put, that measures how much of your credit you use. Maxing out your credit cards, for example, can lower your credit score as it’ll show a higher credit utilization rate on your report.
  • Length of credit history: How long you’ve been using credit also matters. A credit history spanning multiple years gives lenders more information about you, which can raise your credit score.
  • Credit mix: The types of credit you use also influence your credit score. For example, if you can manage a credit card, personal loan, mortgage, and car loan well, you’re a good borrower.
  • New credit inquiries: The number of new credit inquiries, i.e., if you keep applying for new credit facilities, can lower your credit score.

Understanding these factors will help you follow the steps in the next section below to improve your score even on a low income.

How To Improve Your Credit Score On A Low Income

Remember that your credit score reflects how good you are as a borrower. As such, you don’t need a high income to have a good credit score.

Follow these five steps to raise your credit score while on a low income:

1. Monitor Your Credit

A famous saying goes, “What gets measured gets managed.” That’s why you must first monitor your credit score, checking it every few months for any changes.

Doing so will build your credit score awareness and help focus your attention.

2. Pay Your Debt Balances

Next, focus on paying your debt balances. There are two popular approaches you can use:

  • Debt snowball: Pay off the debt with the smallest balance first, then repeat.
  • Debt avalanche: Pay off the debt with the highest interest rate first, then repeat.

Choose an approach you can stick with for the long run.

3. Stay Current On All Bills

Utility bills can also affect your credit. So, ensure you know their deadlines and always pay them on time.

4. Avoid Getting New Credit

While you go through the process of improving your credit score, it’s best to avoid trying to get any new credit.

Remember: new credit inquiries can negatively affect your score, so it’s best not to make any during this time.

As you’ll see in the next point below, there are other ways to borrow money if you need it for emergencies.

women applies for an online title pawn at her computer

5. Consider Alternative Lending Options

You can consider alternative funding if you’re struggling with a financial emergency and must borrow money urgently. Instead of getting a conventional loan, you can consider alternative lending options instead.

Title pawns are one example worth looking at. With this type of loan, you can qualify for as much as $15,000 by using your lien-free car title as collateral. This emergency loan can help you tackle an unexpected expense while repairing your credit history.

How Can You Get An Online Title Pawn Today?

Getting an online title pawn in Georgia is simple. The process is quick and easy, and you can keep your car! Here's how our convenient process works:

  1. To begin, fill out our online inquiry form. 
  2. Our loan representative will give you a call to discuss the online title pawn process.
  3. You'll arrange a convenient location to review the required items and complete a vehicle inspection.
  4. The entire process could take as little as 30 minutes.
  5. If approved, you can get your emergency cash that day or the following business day--at the latest.

Getting a title pawn doesn’t involve the exact requirements regarding credit reporting. Not only can you get one even with bad credit, but doing so won’t be reported to the major credit bureaus.

Consider An Online Title Pawn For Emergencies Today!

You don’t have to let your low income stop you from taking steps to improve your credit score! Remember that your score consists of several factors; working on each can help improve your scores.

Georgia Auto Pawn, Inc. is always ready to help you borrow money without affecting your credit score. Take the first step now by filling out our online inquiry form so one of our friendly representatives can help you through the title pawn process!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Louis Tully

Louis Tully is a full-time finance writer offering financial expertise to everyday consumers. He understands the core values of finance and used his writing talents to share his own experiences with money to his readers. His articles teach how financial failures can easily become successes by making new habits and creating realistic goals.