Learn habits that will improve your credit score

Having a healthy credit life is of utmost importance and to achieve this, maintaining a positive credit score is a decisive factor for your financial life. But what is credit score really? Basically it is a three-digit number that entities use to measure risk in the granting of credit. The higher this is, the more likely you are to qualify for loans and credit cards.

So, if your credit history is not as you wish, at Good Finance we will show you the aspects you need to be aware of to control your finances and improve your score:

Know and understand your credit score

Know and understand your credit score

The first thing to know is the current status of your credit score. You can do it for free by making a written request and going to their Service and Service Centers in Bogotá DC, Medellín, Cali or Barranquilla, or through the Good Credit tool, where people, in addition to knowing their score, can access to personalized recommendations.

Knowing these factors well will allow you to understand what changes you must make to start improving your scores. Keep in mind that these adjustments take time to be reported by the financial entities with which you have products.

Pay your debts on time

Another good habit is to keep your obligations up to date, this good practice will improve your credit score since paying late affects you negatively. It is always a good idea to use the resources and tools available to you, such as automatic debits and reminders, to help you with the payment of your obligations. Good financial planning is also essential.

If you are currently behind on a payment, please update it. Although negative reports remain double the delinquency no more than four years, counted from the payment, the impact on the score decreases over time, that is, the oldest late payments affect their score less than the most recent ones.

Apply for and open new credit obligations only when necessary

Apply for and open new credit obligations only when necessary

The 3 aspects that you should adopt is focused on requesting credit products only when necessary. Keep in mind that opening too many obligations will not improve your credit score, but instead, unnecessary credit can harm your credit score. So plan well when you go to apply for and open a new credit obligation, it is not going to be that the extra expense represents unpayable debts.

Do not exceed your debt capacity

The fourth tip Good Finance gives you is to always keep your credit card and other revolving credit balances as low as possible. The use of credits is another important factor in calculating your credit score. Therefore, always keep balances low, this indicates to financial entities that you know well how to manage your credits.

Take control of your credit score

Take control of your credit score

Having a good credit score is not achieved in a matter of days, as it is a reflection of the good credit behavior that is built up over time. For this reason, it is important to periodically check your credit report and your credit score. Building a credit history out of small debts and products is a good way to start your financial life.

Check different credit scores

Lastly, remember that in the credit market there is not only the Good Finance score. Many entities have their own versions and their scores can go up or down for different reasons.

It’s time to start improving your financial life, take advantage of these aspects to improve your credit score and get closer to your dreams and goals by making good use of them.

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