There are ways to improve credit history. Thus, when you make the next application for a financial product, a lease or an education loan, you will have an excellent rating.
I recently met a person with a very peculiar financial attitude. He was preparing to ask for a mortgage loan.
Seriously, he was getting ready.
Why? I wanted to receive the best possible rating so that, in this way, the bank will consider the best possible interest rate. That is, he wanted to show that he had a good financial management and therefore did not imply a great risk for the bank.
He knew that, at lower risk, better rate.
And it is true. People who demonstrate low risk do better business : the financial institution will assume the risk rating, among other factors, to calculate the rate. If, for example, you get a “normal” rating, it will imply a better rate , probably, than a person who has a “poor” or “doubtful” rating. The consequence? You will pay less money in interest.
But, in addition, having a good rating in the Credit Bureau makes your life easier . You access – without notice – a cell phone plan, the credit program at the university, a lease agreement for a department and even a new credit card.
Yes, comfort, agility and good name when doing business today is vital. But there is another point on which I want to draw your attention: why pay more if you can pay less?
That is the financial attitude that is needed.
Of course, the first measure is to fulfill all the commitments acquired, on the dates indicated:
Many people have found in the “automatic debit” a good help. It works perfect as long as you have an account balance. (A bank will never automatically pay a bill unless it finds the money!)
The idea is to avoid being reported to the Credit Bureau at all costs . You know, the Ministry of Finance has the obligation to register all the information of the entities it monitors (banks, cooperatives, financial institutions, savings banks). And they have the obligation to report when their customers stop paying credits, cards, or keep accounts in overdraft.
The Chamber of Commerce each time it manages a dispute for non-payment, sends a report to the SHCP. Commercial companies, educational entities, also report.
Control the expense so that at the end of the month you have a balance in the checking or savings account. Then, you can pass it to the trust account or to the voluntary savings of the Afore or the Pension Fund. Banks make “averages” and if they observe good management, points in favor.
it is time to make a financial move: if you do not already have it, open a checking account. This type of account has a couple of additional services: you can use virtual channels and you will have an overdraft quota.
You may not want to use it at this time, but it works like this: the limit is a kind of credit. If you do not have cash and you must make a payment, you can withdraw money from your account, even if you do not have it. That money generates (expensive) interest and you will have up to 30 days to pay it.
Part of the evaluation made by the entities is the relationship between the available credit quotas and the use you give them. Under the use of overdraft translates into “good management” and therefore the rating will be good.
In that same order, increasing the limit of your card or requesting a new one will affect the relationship between credit/use of credit. It’s sending a message to the bank: I don’t need that money, I’m fine.
The idea is not to use 100% of your credit rating or 0%. The idea is to show that you are a good payer, a good customer. Therefore, use your cards wisely.
If, for whatever reason you are reported, be a little calmer. The record is deleted in a variable number of years, it can be 3 or 5. Meanwhile, it demonstrates discipline in money management.