Credit history, improve it in a few steps
Credit history? Are all the tacos that I have trusted the lady on the corner part of this?
No, quiet, but if you have not paid, start doing it because from those little things we do the habits.
A credit history is a report made by banks or financial entities explaining your payment record.
The credit history is used mostly by banks to assess your solvency and ability to pay when you ask for a loan.
Are my cash payments part of the credit history?
That depends on where you make the payment and if you receive support for that purchase or transaction.
Also, as the word tells you, it must be something that you buy on credit and pay in installments. What you pay in cash does not add up there.
The fulfillment of your payments, will give you a positive record, even if you delay at some point, if you get up to date in a short period of time, your reputation will not be affected.
How can I start developing my credit history?
The most common ways to start your credit life are:
- Credit cards
- Personal loans
- Property leases
- Automotive Loans
- Mortgage Credits
In the same way, microcredits are an excellent way to start your history, they are small loans that you can pay up to 12 months, so it is a good idea to practice.
How can I have a good credit history?
The answer is very simple: pay always up to date! but for this we suggest:
- Do not acquire debts greater than your income.
- Make sure you have a savings fund before starting a loan.
- Consult with a financial expert before.
- Do not take credits for small or unnecessary expenses.
Now, if you already have a not so positive credit history and you want to improve it, do not worry you can do it!
Improve your credit history in a few steps
- Request a report in your credit bureau to know in detail your payments, debts, delays and all the movements you have made.
- Make a calendar, a list or a picture with each one of your pending payments and the dates in which you must pay them so as not to forget them.
- Try to pay, whenever you can, a few days before the cut day. This will help you “earn points” with the bank.
- Avoid as much as possible overdrawing your cards, this is a clear signal that you can not control your expenses correctly.
- If you receive a bonus or extra income, advance the payment of some fee. Finishing paying a debt earlier than agreed helps your record.
- Finally, if you have an unexpected problem, contact your advisors.
As you can see, it’s not that complicated, it’s a matter of getting organized and keeping in mind that it’s a real responsibility, as well as your fixed expenses.
Why is it so important to have a good credit history?
Let’s say that the most important thing is that when you need a large loan for an emergency or investment project, you can get the loans without complications.
On the other hand, if you need to be the guarantor of someone, having a good credit history can help you more easily.
Also, by having a good credit history you avoid fines or penalties from the bank or the companies that grant credits.
Do not forget that by having frequent delays with your payments, you may find yourself in legal trouble.
As we discussed earlier, it is a matter of responsibility and organization, so this also speaks of you as a person and professional.
3 tips in case you’re not very good at this
- If you feel you can not control your purchases with credit cards, hide them!
- If you are going on a trip or on a vacation, take only one or two cards, otherwise you will spend them all.
- Place alarms on your cell phone and in your email 5 days before your payment date expires.
Sometimes we need an extra help in this topic of organizing our finances and what better way than to rely on technology.
Finally, we advise you to always be attentive to your movements and transactions, keep a personal record of your expenses.
Sometimes there are failures or errors in your registration within the credit bureau and so you know if there is one that has not benefited you.