At some point you have needed (or will still need to) install a purchase, get a loan, or have a credit card. And it is difficult for banks or financial institutions to fulfill this request immediately.
These companies usually use the time to think to give the answer to do a kind of scan of customers’ pockets. And in this radiography they seek information about the payment history of those who asked for the credit or intend to split the account.
Their goal is to avoid, as much as possible, being passed over. That’s right, just like you or me, nobody wants to take a default, stop being paid, whatever the explanation.
And in the case of companies, the solution is to seek support in the credit score. Score is a kind of note to assess the ability to pay, the possibility of the person honoring (or not) the commitment made.
How is the score calculated? Can I increase it?
There is no single way or simple formula for this. Usually each place adopts a very specific system. The common ingredient of almost everyone is public information coming from companies that work with exactly this.
You may have heard of these places. These are called credit bureaus. Quite strange name. Difficult to even speak. But if I tell you that Fine Bank, Credisure Group and Lite Lending are examples of bureaus, the conversation will be much calmer, right?
The score usually varies between 0 and 1 thousand points and the higher it is, the lower the chance of the person being in default:
- 0 to 300 points – high risk of default;
- 301 to 700 points – average default risk;
- 701 to 1 thousand points – low risk of default.
Another advantage of having a good score? Imagine the same situation. The person wants to split the purchase, asked for a credit card or needs a loan. If the company consults her name and checks that score very high, the treatment is usually different.
There’s even a red carpet The tendency is to release a higher limit on the card, split the purchase more often, or allow the loan to be paid in more installments and at a lower interest rate.
But and for a slightly different situation. The score is low. Is there a way to improve this faster? Take note of the Guiabolso tips for this:
Avoid getting your name dirty and pay the bills on time
Also remember to renegotiate debts if they are a little higher than desired and escaping the budget. Patience also needs to be used here. It will take a while for your status to change after everything is right, all in blue. It is not as fast as in the social network that is just updated and everyone already knows.
Try to increase income
Usually when the gains increase the score also gives an up, it goes a little up there. A way to earn a little more? How about a beak or a freely exploring your professional skills? 3 – Use credit lines well
It works like this, if the person manages the credit lines well, it is a sign that he has enough organization to conduct his own financial life well.
Another valuable tip for the score to get better? Seek credit at various institutions and with certain regularity. The habit shows the concern to simulate the best option to not let things get out of control. On the other hand, entering the overdraft or revolving card and not leaving there, or using a bad check take you in the opposite direction and make your score go downhill.