Credit Score: All You Need to Know
March 13, 2019
Do you have the custom of requesting the increase of your credit card limit and have your request always denied by financial institutions? So your credit score may be lower than expected. Do you know what credit score is and how to increase it to have your applications granted? Not?
It’s ok, do not worry! Today, in this post, we present the essentials regarding this tool of the market, so that with this you know how to deal. Stay with us and follow us!
After all, what is credit score?
The credit score is, according to credit protection institutions, the result of consumers’ payment habits, that is, those who have credit in the market.
Next, you will understand this tool and can, from there, better deal with it to get a good score with credit protection institutions.
What is the credit score for?
Throughout life, we acquire products and services and, most of the time, use our credit card to perform this act.
In addition, we also make loans and financings, mainly of high cost products, such as car, house, among others. Acquisitions are often necessary to provide the least possible comfort and well-being.
However, when we buy products or services and we do not pay on time, that is, out of the due date of the invoice, financing or loan, our credit score is affected and our score is decreased.
For this and other reasons, our request to increase the credit limit, for example, is rejected, since the financial and credit institutions have databases for consultation and that point to our score.
The higher the score means you are a good payer and always take your debts back on track. The score, it is good to say, punctuates the consumer from a note ranging from 0 to 1000. It is divided into three categories of risks, namely:
- Up to 300 points : there is less probability of obtaining credit;
- From 300 to 700 : there is an average probability of obtaining credit
- Above 700 : there is a greater probability of obtaining credit.
How do I check my credit score?
This can be the question of many people, especially if they have the goal of acquiring products and services and facilities when it comes to trading in the market.
Knowing this information is also essential for self-assessment and thinking of solutions that will allow you to have ample credibility in the market and control of finances. It’s the kick-off for financially educating if you encounter a low score.
Then, you can consult, free of charge, your score on sites that have this tool, such as Score Good for Credit , Serasa Score and Boa Vista SCPC.
The registration requires some basic information, such as CPF, full name, date of birth and e-mail. In addition to providing your score, it allows you to have access to unsecured debt you have not yet paid which may be weighing in on your score.
How to increase your credit score?
To increase your credit score and make you regain credibility in the market it is important to always keep accounts up to date and, if you have the name or CPF in default, clean it. Here in the blog we made a post with tips to help you increase your credit score .
It is also important to keep the data up to date so that credit protection agencies can obtain information that is related to their behavior in the market. The better your behavior, the better your credibility.
Financial planning can help you keep your score high
Financial planning is critical so you do not tighten up and get your bills up to date. So, make sure you work out one, that gives you full capacity and control to understand your financial power.
In other words, it is very important that you establish what you want to consume and, from there, seek to outline a rational planning, within the available budget, that makes you achieve that goal.
For example, if it is a car that you want in the amount, say, $ 50,000, why not evaluate how much of your income could be compromised, without this harms you and take your comfort and peace of mind?
That way, you will have everything under control, not getting defaulted or even paying your bills late. Therefore, your score will not be harmed, on the contrary, if your doubts were cleared up, you could increase your score and your credibility in the market.
So, after reading this article, have you managed to understand how credit score works? We hope so! After all, our goal here is to ensure that you achieve your dreams by having ample credit in the market to reach them.
And since you’ve been interested in the subject of score, check out these two posts related to the subject:
- Income commitment: what is it and how much can it be?
- Debt Renegotiation Helps Organize Finances
Speaking of credit chances in the financial market, how about seizing the moment to register on our website?
We can help you get what you want by giving you the facilities to apply for a personal loan.