Can working from home can help your credit?


  • You can potentially save thousands a year by working from home.
  • Saving money from working from home can help your credit score.
  • 70 percent of employees, as reported in June, were required by their employers to work from home. 

Are you currently working from home? According to a remote work survey from PwC that was published in June 2020, 70 percent of employees were “required to work from home” because of the coronavirus. 

While many of those working from home are enjoying a little extra sleep, a 30-second commute from the kitchen, and sweatpants instead of office attire, there is another benefit that could outweigh the rest: saving money, and a lot of it.  How much money?  A recent survey from FlexJobs reveals that you can possibly save over $4,000 per year working from home. And, saving money, in turn, can help your credit.

So, what are some of the expenses that you will be saving? 

Depending on how far and how you commute to work, whether you drive or take a train or subway, your commute is most likely one of your biggest work-related expenses, costing about $2,000-$5,000 annually. 

Clothes are another expense. Buying work clothes and accessories for the office, along with dry cleaning bills, can also cost a pretty penny over a year. While you may need to still look professional for Zoom conference calls from the chest up, you can save money on work pants, substituting jeans – or even sweat pants!                                  

And, while that morning coffee you grab on your way to work and the salad or sandwich you usually get for lunch may seem “small” in terms of expenses, they definitely add up over a year.  

How one family did it

NBC shared the story of the Cox family who, during this pandemic was able to use most of their stimulus payment to pay down their debt. They made most of their meals at home, which helped save even more money. With school going remote, Mrs. Cox no longer drove her son to a far-off school that met his needs, saving on gas. Vacation money also went toward paying off debt. Then she and her husband refinanced their mortgage, reducing the term of their loan and their monthly payments. Everywhere they saved, Cox plowed most of the money into paying down their debt.

Not only is this family now debt-free, but the mother’s credit score is now an outstanding 800.       

Improve your credit score

If you are struggling with paying your credit card bills on time and/or in full, saving as much money as possible by working from home, can make it easier for you to pay your credit card bills on time and protect or boost your credit score.

You can also help your credit score when you keep your credit card balance low, under 30 percent of your limit. Purchasing fewer items, because you are working from home, can be beneficial to your credit score.

And, it’s important to check your credit score often, to make sure you’re on the right track. You can always check your score at Credit Sesame

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Published January 29, 2021
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