How to Protect Your Credit If You’re a Freelancer

May 3rd, 2017 | Author:

[B]ecoming a freelancer where you can work from home is a dream for many. It allows them the flexibility of making their schedule fit their life instead of working 9 to 5 and gives them the freedom to do what they want and be their own boss. However, it can also cost them financially if they aren’t careful. Here are some ways to make good financial decisions and protect your credit if you decide to become a freelancer.

Save Money

Before you quit your day job, put money in savings. Ideally, you should have about six months of expenses in savings. Even if you are already earning money on the side as a freelancer, it takes some time to get into a routine once you quit your regular job. You may find it hard to work enough to pay all of the bills at first, so a savings account is essential to protect your credit.

Get Credit First

It can often be difficult to get credit as a freelancer, especially with a home loan or car loan. If you plan to buy a house or vehicle, do that before quitting your job. You’ll find the process easier and you won’t have to go through as many lenders and credit checks to qualify.

Earn More than You Need

Create a budget for how much money you need to earn, and then work to earn more than that amount. Why? Because you won’t always get paid on time or have a regular pay schedule like with a traditional job. You’ll need the extra income coming in to make sure your bills are paid on time so you don’t hurt your credit with late payments.

Pay Ahead

Before you quit your day job, try to pay your bills ahead by a month. This gives you some room if a client doesn’t pay you right away. You don’t have to worry about being 30 days late on your car loan because you’re waiting on a payment. Of course, this won’t work with every account, so you just might have to put the extra in your bank account.

Newest Answers

What to Expect with VantageScore 4.0

May 22nd, 2017 | Author:
h

[V]antageScore announced it would have the latest version of its credit scoring model out for use sometime in the fall of 2017. Several updates expect to more accurately measure a person’s credit history. The Credit Balance One of the big changes in how balances on credit accounts will impact a person’s credit rating. Instead of […]

Continue Reading »

What to Consider with Annual Fee Credit Cards

May 19th, 2017 | Author:
h

[M]any credit cards come with an annual fee. In fact, people with bad credit often assume that’s the only kind of card they can qualify for. While it’s true that many cards have the fee, not all do. Before you apply for a card, you should consider the annual fee. Cards for Bad Credit A […]

Continue Reading »

How You Can Pay Off Your Mortgage Sooner

May 15th, 2017 | Author:
h

[T]he secret to financial independence and good credit is having enough money to live on and for emergencies. One way to ensure this is by reducing your debt. The biggest debt for many is with their home. A mortgage not only comes with a higher payment, but it is often set up for 30 years. […]

Continue Reading »

How to Protect Your Credit If You’re a Freelancer

May 3rd, 2017 | Author:
h

[B]ecoming a freelancer where you can work from home is a dream for many. It allows them the flexibility of making their schedule fit their life instead of working 9 to 5 and gives them the freedom to do what they want and be their own boss. However, it can also cost them financially if […]

Continue Reading »

The Basics of Budgeting

April 24th, 2017 | Author:
h

[W]hether you are just starting out on your own or just starting over, one of the most important things you can do is learn how to budget. Many people think they know how to budget, but they fail to stick with it. So, the goal is to not just create a budget, but to create […]

Continue Reading »

Revolving Credit or Installment Loans: Which is Better for Your Credit?

April 21st, 2017 | Author:
h

[I]f you’ve been learning about credit, one of the first things you’ll hear is you can’t get credit if you don’t have credit. It often seems to be a Catch-22; no one will give you credit so you can’t get established with a credit history so you can get new credit. With diligent effort, you […]

Continue Reading »

What to Do When a Landlord or Employer Asks to See Your Credit Report

April 19th, 2017 | Author:
h

[S]ometimes when you are filling out a rental or job application, you’ll come to a page that asks you to sign and authorize a credit check. Most people will sign it, hoping for the best if they have less than perfect credit. Even when you do sign it, you may wonder if that was the […]

Continue Reading »