Today many people are interested in knowing how to discover credit score and increase the score and, thus, also increase the chances of being able to access the best financial services. If you are one of these people, this article can help a lot. Next, we’ll show you what the score is and how it works, as well as some simple tips that can help you improve your score. Let’s get to the point: The score indicates the chance that you will get loans, financing and booklets, how do you discover Your SCORE and what the score is?
UNDERSTAND WHAT THE SCORE IS
Simply put, the score is nothing more than a score that indicates how much a person is able to honor with their financial commitments in a given period. This is a rating that determines the probability that a person has to pay their obligations and is based on factors such as their credit experience, use and balance of their credits, diversity and number of institutions and financial products contracted, and sociodemographic variables such as, the credit score has a range of 150 to 950 points and the higher the rating you obtain, the greater the chances of obtaining a credit since for the entities this represents a lower risk.
The logic is as follows: when a financial institution is going to grant credit to a customer or a company intends to make an installment sale, it is necessary to know if that person has the profile of a good payer and will honor the debt according to the contract. That’s exactly where the score comes in
In practice, through score scoring, companies and banks, for example, can assess the risks of granting credit to a specific customer, taking into account their recent behavior in the market, their history of transactions and their relationship with companies and financial institutions. In this way, the decision becomes more secure and based on hard data. Learn also about Credit Reports, Scores and Ratings
WHERE TO CONSULT THIS SCORE?
In Colombia there are free and paid alternatives to know this score. Entities such as DataCredito Experian or TransUnion have made credit score consultation channels available to citizens. The first are the care and service centers. In them you can access to know your credit history for free once a month. For this you must make an appointment and bring your identity document. As a second alternative, you can send a request for information or a right to request in writing to the company offices. There are the online options: the subscription pays on the Datacredito website, which allows you to have online access to all your credit history, or the Control plus tool in which you are charged for to be able to visualize and understand all the information reported by the entities.
DO I NEED TO KNOW MY CREDIT SCORE?
The United States Federal Trade Commission (FTC) does not recommend that you ask agencies or companies to report your credit score, as they may charge you for the service and know the score not. It is very useful, as explained on its website.
“It is very important that you know the information on your credit report. But a credit score is a number that corresponds to the information in your credit history. If you know you have a good record, you will have a good score, “says the FTC. Similarly, “you have to pay if you want to know your credit score. Sometimes a company may say that the score is free. These services charge him every month. ” You can find out your credit history at no cost, since you are entitled to a credit report once a year. “You are entitled to a free credit report every 12 months from each of the top three consumer credit reporting companies (Equifax, Experian, and Trans Union). The credit report is a summary of your credit history, that is, it describes how many debts you have, if you pay them on time, the number of credit cards you have and personal information. The credit report does not contain your credit score.
According to Investopedia, the types of credit are broken down as follows:
- Excellent: 750 and up
- Good: 700 to 749
- Regular: 550 to 649
- Bad: less than 550
HOW TO CHECK YOUR CREDIT SCORE
Your credit score is a score that determines your credibility as a payer. The higher this score, the better the conditions for an eventual loan or new credit card. So, do you want to know how to check your credit score? Check out some ways.
FIND FREE SITES
There are many sites that advertise that they are “free”, but you need to pay to access the report, or sign up for an annual subscription. You will not have to pay anything to check your credit score, and your credit score for making the request will not be negatively affected.
Check your credit score directly with financial institutions. Many lending companies, credit card companies and banks have started to provide credit scores to their customers.
ASK A PROFESSIONAL ADVISOR
These professionals can report your credit score for free. They can also analyze your finances and assist. They check your credit score, you must also check your credit reports regularly to ensure that the information is complete and accurate. You can also receive a free copy of your credit report from the top three credit bureaus at least once a year by visiting the Annual Credit Report website. If you find doubtful information, contact your lender. And you can file a dispute with the credit department that provided the report. If you are not satisfied with your score, you can improve it by reducing your debts and paying all bills on time.
4 TIPS TO INCREASE THE SCORE
As stated, the higher the score, the better it is for the consumer to have access to credit. However, if your score is not in the way you would like, know that it is possible to improve it from simple actions. Below, we list 4 measures that can help.
Pay bills on time
Make the registration positive
Settle your debts