Apr 03, 2018
HOW FREELANCERS KEEP THEIR CREDIT SCORE STABLE
DigiSciFi TechnologiesGuest
Full Bio
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If you are a freelancer, you would have experienced that at some point in time you will be running short of money for your credits you have taken. It may not make much difference for your client if he/she is paying you a week later, but it can be quite stressful for you. As a freelancer, it might be an issue for you to grow and start a business. So, being one of the best freelance platforms, we are sharing few points for you to keep your scorecard stable. 

 
Credit score is must to survive! 
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To improve your credit score you first need to think of your credit score when you make your financial decisions being in freelance jobs.

First thing is being aware of your income and expenditures. You must know what percentage of your income you are spending for your credits. You need to plan your expenditures based on your income. Credit score depends on your ability to manage the “ratio of your debts to your income”, as it is not only about paying your bills.  

 
Think about your expenses, debt, and income 
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The best to avoid the load of credit is by maintaining consistency. Practically speaking you may have many clients for few months. But after few months it might reduce by 2 or 3 if you finish the project until you find your new client your expenses will be less. So, for a freelancer, the income will not be stable like the regular employee. You should be more careful when you take up credits. You can have regular “expense tracking apps” to track the day to day expenses.  

When we speak of targets, we first need to find ways to reduce the expenditure. We can cut out the subscriptions and services which are not necessary and are working on your credits. If you want to improve your credits it’s just not enough for you to save money, you must also reduce the monthly automatic load on your credits. Credit is the awesome thing to use but, it is dangerous as well if you overuse it. So, work and prepare your chart of the income, expenditures, and credits. It helps you in deciding where to invest your money and how to increase your income. 
 
Save Your Revenue to Keep Credit Stable 
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Protecting your income is as important as reducing the credits or increasing your income because, if you don’t get the money for the work you did, its waste of both your money and time. So, protecting your revenue is important.

You can do this by adding payment conditions in the contract. So that when it's time for the client to pay, the dispute should not arise regarding payments. Sometimes even with the contract, you may have to face issues then you can send the legal notice to the client and get your work paid. If you have faced issues in previous projects, then it is worth to take deposits or milestone payments (payments in installments).   

 
Conclusion 
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Maintaining your debits and reducing your credits depends on the way you handle your income and the expenses. You can spend a percentage of your income on your credits so that you are safe even in the ups and downs of the income. What's your thought on this? Do share with us by commenting below!

Vulpith is one such platform where you will be able to get best of the freelance work online. Get your freelance work done from home. We are a freelancing and outsourcing platform where we bridge the gap between freelancers and clients. Join Vulpith and be a freelancer or hire freelancers.
 

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