Improving your credit score will not happen overnight. A good score is like walking on the street: you will only be able to run 10km if you follow a training pace for a while.
In the case of your credit score, you will only be able to increase it if you can maintain a good financial record over time. But do not worry! Even those who have not had a very good score today can still start changing their habits and improving them.
Thinking about it, below we will explain to you what is the credit score, what it serves and how you can do to improve your reputation in front of financial institutions!
What is the credit score?
Credit score is the way that banks and financial institutions have to identify if you are a good payer. That is, at the time you will apply for a loan or financing, for example, they do an analysis of your score to understand how likely you are to honor the debt.
It is a sort of score calculated by Serasa to measure the risk that an institution will incur by giving credit to you. This score can range from 0 to 1000, and the closer to 1000, the better your financial reputation will be, and the more easily you will be approved on your credit applications.
What can negatively affect my credit score?
There are some factors that contribute to the fall of a person’s credit score, being:
- Negative information consisting of judicial foreclosures;
- Checks without funds;
- Search and seizure actions;
- Participation in bankrupt companies or in judicial reorganization;
- Annotations of default (banks, credit cards, financial, telecommunications, retail and services).
How can I improve my score?
In addition to avoiding any of the problems mentioned above, it is possible to take some small attitudes and changes in your financial habits that will bring about improving for your credit score . But remember: you should keep a “good payer” history, do not just follow these tips for a while. See also:
Pay your bills on time
First, the accounts. Your credit score takes into consideration if you leave too many accounts overdue, so it is important to keep the payment always within the due date. For credit cards, when you can not pay the full amount of the invoice, it is important that you pay at least part of the bill within the due date.
Even remove the oldest debts
After 5 years, it is not allowed to keep the debt negative. However, a debt never ceases to exist. In the analysis of your score it is possible to see if a debt was withdrawn from Serasa because the time passed or because you took it off. Even if she does not present any more risks of taking her name to the SPC, it is important for her record that she be removed.
Account in more than one bank
Each bank has some peculiarities when calculating the credit score. Owning account at two different institutions is therefore interesting to improve your score. That’s because you’ll be nurturing a good relationship with both.
Use bank products
Investments, credit cards and overdraft are some of the options that can improve your score. Of course, common sense is needed when using these products, but the more you accumulate over time, the better the banks will see you.
Shop for credit
It may sound strange, but the ability to accumulate debts (and pay them of course) is one of the points that positively influences your credit score. Who buys everything in debt or in cash will not have your score influenced. Now, if you have made purchases on your credit card, for example, and paid for it always up-to-date, this will undoubtedly put you at the top of the rankings.
With a good payer history, you increase the likelihood of getting credit, such as an online personal loan that can be requested over the internet without having to leave home.