Have you been surprised when a bank rejects your credit application on the grounds that your credit score is very low and you do not know exactly what it is referring to or perhaps you had not realized that situation. Without going too far, said score is an evaluation made by financial information centers (Datacredito-Experian and TransUnion) on your behavior as a debtor. Indicates, in a few words, if you are good or bad paid, or what you are assigned a grade for that banks and other entities will take into account when deciding whether or not to lend resources or finance the acquisition of a good or service.
(Also read: Pension contributions will not be able to finance government plans: presentation of the reform)
Each risk center has its scoring scale. For example, Datacrédito-Experian That score ranges from 150 to 950, so a good ‘score’ means being close to 950. Having a score above 700 points translates into good management of financial and commercial obligations.
That’s the way things A good or bad rating depends only on you as a debtor, since it is made up of your payment habits, if negative reports appear in your credit history (delinquent debts, late payments, defaults, refinancing) or not, information that is shared by financial entities and cooperatives; companies in the real sector, telecommunications and firms that offer some type of financing for products or services or that require compliance with specific payments; such as cell phone planes, internet, among many others.
(You may also be interested: In the first quarter of 2023, almost 20,000 people changed operators daily)
Thus, the higher your score, the more likely you will be to qualify for bank loans and other types of financing that today are offered not only by financial institutions in the country but also by other companies. Therefore, here are some tips that can help you take care of and improve your credit score.
1. Know and understand your credit score is key
Your credit score is the result of the information you have in your credit history. For that reason, it’s important to regularly review your credit history, which you can do today for free at www.midatacredito.com.
Understanding these factors will help you understand the changes that need to be made to start improving your scores.
Keep in mind that these adjustments take time to be reported by the financial entities with which you have products.
2. Pay your debts on time
Your credit score is the result of your credit behavior. Therefore, always keep your obligations up to date. Paying late negatively affects your credit score. It is always a good idea to use the resources and
tools available to you, such as automatic defects and
reminders to help with the payment of your obligations. A good one
Financial planning is also essential.
3. Apply for loans only if necessary
Keep in mind that opening up a lot of obligations probably won’t improve your credit score, and conversely, unnecessary credit can hurt your credit score. That’s why plan well when you go to apply for and open a new credit obligation so that spending more will represent impossible debts to pay.
4. Do not exceed your borrowing capacity
Always keep your credit card and other revolving credit balances low. Credit utilization is another important factor in calculating your credit score. Therefore, always keep your balances low, this indicates to financial institutions that you know how to manage your credits well.
5. Always check your credit history
Having a good credit score is not achieved in a matter of days, as it is a reflection of good credit behavior that is built over time.
For this reason, it’s important to regularly check your credit report and credit score. Building a credit history from products and small debts is a good way to start your financial life. This also allows you to know if the obligations you have contracted are requested by you and not by a third party in your name, which is very harmful.
6. Immediately report any abnormalities
No one is exempt from being a victim of fraud or identity theft. Hence the importance of reviewing credit history and generating corresponding alerts and notifications to find out when new products are opened in our name. Through the midatacredito.com portal, notifications about the opening of new products can be activated free of charge, and our credit history can always be consulted for free.
6. Consult other risk centers
Remember that in the credit market there is not only the Datacrédito Experian score. Many account entities with their own versions and your score can go up or down for different reasons.
