How to increase my score? This is one of the most frequently asked questions in our Help Center, and today we have answered all your questions! We ask our experts for the best tips to increase your score and achieve your goals.
This is a question that has increasingly come to our credit experts. Credit Score is a value (ranging from 0 to 1,000), it shows how is your relationship with the financial market.
What is Credit Score?
The closer your credit score gets to 1,000, the market sees you as the best payer. The more you move your money in the bank, have your house purchases and bills with your social security number, pay your bills on time and / or negotiate outstanding issues, the higher your credit score.
This score exists to let the market know you when you buy something, open an account, apply for a credit, finance a good or any other financial movement. It is a way of protecting the institution you are relating to.
In this case, the lower your credit score, the interest rates on loans (for example) tend to be higher because of the risk of default that your score represents. Below are tips to keep your score up and ensure the best rates!
What are the best tips to increase my credit score?
1 – Avoid staying on credit line
Whether on your credit card, checking account, or store cards, avoid living with accounts near your credit limit. If your card has a $ 1,000 limit and you are making purchases that are very close to that amount, credit protection services will understand that you are more likely to get into debt.
2 – Overdraft – the villain of your low score
How many times have you used your overdraft this year? Beware, relying on the overdraft limit is a danger as it demonstrates that you are spending more than you have earned. In addition to using one of the highest interest rates on the market (about 12% am on overdraft), paying more than you “borrowed from the limit,” you wind up in debt for next month.
3 – How is your payment history?
Paying your bills on time is part of good practice to have a higher credit score! Avoid paying bills after maturity, in addition to running away from interest, you also keep your credit profile well regarded!
4 – Does my score increase soon after paying a debt?
Myth! Your score changes according to various variables, from public sources (eg credit protection services) and private sources. Updating this information is not automatic, so if you pay a debt today your credit score will not be higher tomorrow. This may take a while.