When you’re searching for a new role, it can feel like your job hunt is the most important part of your life, so it can be hard to find the effort and energy to deal with other issues such as poor credit and debts.
If you haven’t got a steady income, then you’ll also find it hard to improve your credit and pay off your debts, so it can all feel like a vicious cycle.
With US employment plummetting thanks to the Coronavirus pandemic, there are many individuals in this challenging position right now, but thankfully there are things you can do about it.
For anyone who wants to find out how you can improve your credit while you’re searching for a job, we’ve got you covered. Read on, and we’ll share some tips to improve your credit even while you’re between roles.
Consult The Experts
The first step towards improving your credit, whether you’re in employment or not, is to talk to the experts. They can offer you advice and help you to understand the options you have so that you can make decisions that benefit you in the long run. My Credit Track can help educated you on the matter so you can make the right decision for you, so reach out to them, and their experts will talk you through how you can find out your credit score, find out what it means and improve it.
Prioritize Your Debts
After you’ve consulted the experts and learned more about your credit score, you should try to work out who you owe, how much you owe them and which debts you need to prioritize. Some debts might require urgent action, while others can wait. You also need to check how much interest you’re paying on each debt so that you can pay off the most expensive ones first. Check the terms and conditions, so that you don’t get caught out by any extra fees that you might incur if you leave a debt waiting for longer than a set amount of time.
Negotiate With The IRS
If some or all of your debt is back taxes, then you can negotiate with the IRS to reduce your debt and make paying it back more manageable. Learn about how you can make the IRS an offer in compromise, which will allow you to repay your debt for less than you owe. This approach will help you to improve your credit score and reduce your chances of having the IRS knocking on your door or ramping up your debt with high interest rates.
Try To Avoid Further Debt
It might sound tough to avoid going into more debt when you’re unemployed, but if possible, you should try not to take out loans or ask for credit. Try to borrow money from friends or family, so that you don’t have to pay interest and have a flexible repayment plan. You should also try to reduce your costs by living with family or someone who will allow you to stay with them rent-free while you get back on your feet and find yourself a new job. If you can’t avoid debt, then try to find an interest-free credit card that will allow you to save money on the repayments, so that you’re not swimming in debt for the next decade or more.
Improving your credit is essential for anyone who wants to get the best possible credit options, as well as anyone who is looking to buy a home in the future. It can be a long process, so you need to start as soon as possible, even if you’re between jobs. These tips should help you to understand your options and make an informed choice.