The credit score is important to obtain credits and loans from financial companies, since nowadays the score is often used as a parameter. Thus, keeping the score low can negatively influence the time to obtain credits and increase the purchase limit. so know how to increase the score.
In addition, there are actions, such as paying bills in advance, that can help achieve a high credit score. In addition, running away from certain situations, such as late bills, will also avoid decreasing points. Being young and having a low income is not synonymous with a low score.
Incidentally, the score is a tool that measures the consumer's financial practice. Companies use the consultation of the client's personal score to analyze the risk of offering credit. That is, it does not measure based on how much the person receives monthly, but on financial behavior. See what a credit score is below.
What how to increase the score?
The score is nothing more than a score that allows you to identify, among other factors, whether or not you are a good payer. That way, the company will know how risky it is to lend you money. And therefore, it will release a high or low limit depending on that score. However, there are several attitudes that allow the increase of the score.
Well, you should already know that a high score is more likely for the company to offer a higher credit limit. However, the opposite occurs for the low score. The score ranges from 0 to 1000. The more overdue or unpaid bills, the lower the score value. Serasa defines the score as low from 0 to 300.
A low score impacts financial opportunities, such as getting a good credit limit and loans. Furthermore, it may represent that the person is not a good payer. However, there are techniques to increase the value of the score. See below how to increase the score value and improve your purchase limit.
How to increase the score value
To get credit approvals, loans, and obtain financing, it's important to keep your score high. Furthermore, many companies use this tool to get to know their future customers better. So, want to improve your purchase limit? See below behaviors that help increase the score:
- when paying in installments, it is important to try to avoid late payment, as failure to recognize payment by the due date reduces the score;
- always avoid contracting debts, organize your accounts and your savings. Sometimes debt can be avoided by knowing exactly how much you have and how much you can spend. In this way, the chance of more money leaving the account than entering it is smaller;
- whenever possible pay installments of cards and loans in advance. This seemingly silly attitude can help you increase your score and make a difference in your credit card limit;
- invest in courses, books and videos on financial education. It is not the amount of salary that will determine whether a person will be indebted or not. Incidentally, it all depends on self control and financial organization;
- Also, keeping bill payments up to date, especially credit card bills, helps banking companies gain higher limits.
Furthermore, keeping the score above 700 indicates to the financial institution that the customer is a good payer and that the risk of late payment of the credit borrowed is low. Therefore, when applying these techniques, your score will always be high, allowing companies to release higher amounts of credit.
How is the score calculated?
Okay, we already know what the score and how to increase it, but who does the calculation for this tool? Today is the serasa which calculates the credit score. Thus, according to the company, the score is calculated using a statistical pattern from categories of information. This information varies from person to person.
Among this important and necessary information for the calculation are the debt history, the credits contracted, the payment of credits, the amount of time the card has been used, the credit analysis and the settlement of debts. Each category has a percentage in the calculation, with the highest weight being credit payment in Score 2.0.
Well, now that you know about how to increase the score credit card, how about applying the information to get more and more points and improve your purchase limit? The techniques are few, however, you need to make an effort to apply them. Whenever possible, keep your accounts organized to keep them up to date and increase the score.