The score is a widely used instrument by banks and financials to measure default risks. That is, he can see based on your social security number if you will become delinquent. In this way banks and lenders can view your financial profile and whether or not to authorize your loan.

The score works in a smart and safe way, where each person has a score ranging from 0 to 1,000. Such a score is based on:

  • analysis of bill payments on time;
  • history of negative debt;
  • financial relationship with companies;
  • and updated registration data.

The higher the score, the better the odds of easy credit release.

money loan

Your score analyzes your financial health. Thus, he can: check if you are a good payer, if you can fully pay the card bill, if there is no protest in the registry, among others. The score is one of the essential factors when it comes to loan application.

The more points in the score, the more likely you are to pay your debts over the next 12 months. This means that you are more likely to have your credit approved at the lowest interest rates on the market. The scoring system can make a kind of prediction by analyzing your profile, checking the people who can always meet their commitments so they can get the best rates and a faster credit release.

The score ranges from zero to one thousand points:

  • From 0 to 300 points there is a high risk of default;
  • 300 to 700 is selected as medium risk
  • Above 700 is the best category, where there are the lowest risks.

How does the score help you?

Knowing your score number allows you to have better control of your finances. Because you can understand the impact that your financial movements result. This way you can have better planning and use it in favor of your planning.

Can you increase your score?

car loan

1) Pay Your Debts

To increase your score, it would be correct to leave your name clean in the square. If you have unpaid bills, try to negotiate with the lending company and settle your debts. This must be the first step! And most importantly, you can organize your financial health and increase the score. But have you been able to clear your name but your score has not increased yet?

2) Update your data

This is a simple but extremely important tip: updating your data means checking to make sure everything is ok, as small errors can severely lower your score points. You can perform this update online, or by going to an authorized agency.

3) Don’t make debts

Paying your bills on time or debiting preventing your name from returning to the negative list. This helps your score not to lower your score. To include bills like water or electricity in direct debit please contact the responsible companies and your bank so you never delay an account again.

I have a very low score. Can it get worse?

money loan

Unfortunately, yes, this is worse when you do not pay your bills on time, and even if they do not leave your name negated they reduce your score. Another factor that drastically lowers your score is when you exceed the limit of your credit card, by having advanced technology the score can see that you are using more than you should bank credit demonstrating that your financial health will not well and this factor ends up lowering your score on the score.

Leave a comment

Your email address will not be published. Required fields are marked *