Credit score is very important for everyone and even for businesses. It is through it that you get clearance for a new credit card, for limit raising and even for loans and financing.
If you want to conquer any of these situations you need to find out how to increase score. This way, you can still know if yours is at an optimal level.
Companies and financial institutions take this score into account during a credit analysis. If you happen to be in debt or have just repaid a debt recently you may be denied service because your score is not within what that company considers safe.
Do you need to increase your credit score? Check out some clear tips for this:
What is the score?
There it is registered as you pay your bills. Whenever delays or non-payments occur, your name goes to Serasa and your score drops. The purpose of the score is to help companies determine what risk you pose to them by providing you with a credit card, loan or financing.
In short, the score is a way to check if a person is at high, medium or low risk of failing to make a payment. Several factors are taken into account and you have how to improve this score.
Who is between 0 and 300 points is considered within high risk of default. Those with 301 to 700 points have medium risk, and those with 701 to 1000 points are seen as people with low risk of default.
How it works?
Interestingly, credit analysis takes into account other factors, not just the score. Some banks even consider their track record with them, with checking accounts and credit cards.
To make the analysis are your documents, the history with the financial institution, the analysis of the score and if what you request is within your profile.
The score takes into account your debts paid, what is overdue, if you have been negative, credit requests and even what your relationship with credit companies is like (for example, if you tried to renegotiate debt instead of getting stuck). rotary only and if you have completely paid it off).
It is worth mentioning that some behaviors contribute to lower your score, such as:
● Do not pay bills on time every month;
● Apply for many credit cards;
● Do not have accounts in your name;
● Request limit increase (very exaggerated value);