Your income is not part of your credit report, so an income reduction will not directly affect your credit scores. As long as you continue to make your payments on-time and keep your balances low on your credit cards, your credit scores will not be adversely affected by changes in income or employment.
If, however, you are unable to make your payments on time or your debts increase as a result of the reduction in your income, those late payments or higher credit card balances will be reflected in your credit report and will likely decrease your credit score.
When you apply for credit, businesses may ask for income information as part of the application process. Your income may affect their decision to approve or deny your application. However, your credit report is a history of your credit and debt-related information and shows how well you manage your finances regardless of your income or your other assets.
Check out the scope to hear answers to all the questions asked.
Do you have questions about credit?
Join our live video chat every Tuesday and Thursday at 3:00 p.m. ET on Periscope. Rod Griffin, Director of Consumer Education and Awareness at Experian, is available to answer your questions live.
Scoped on: 10/23/2018
Want to instantly increase your credit score? Experian Boost™ helps by giving you credit for the utility and mobile phone bills you're already paying. Until now, those payments did not positively impact your score.
This service is completely free and can boost your credit scores fast by using your own positive payment history. It can also help those with poor or limited credit situations. Other services such as credit repair may cost you up to thousands and only help remove inaccuracies from your credit report.