Once you start your credit life, the important thing is to keep it with a positive report but this not only means paying your debts on time but also taking into account other factors.
The credit score is a way in which financial institutions can determine the probability that you show to have to pay your debts. This begins to register from the moment they grant you a financial product that involves a credit such as a credit card or a loan.
And although starting to have this registry “clean”, without debts or delays in payments, seems to have a unique formula that is to pay on time, is not the only thing.
David Baddeley, president of finance.co.uk, points out that beyond being punctual with the payments is to learn to know when to use a credit or a card: “The terms must be consistent with what I am buying, so that a purchase of a daily consumer item, does not have to be referred to more than one quota, even, nor It should be bought with credit. ”
David Baddeley, suggests that only large purchases should be deferred for long periods and, with this, begins to build a credit history.
But another related issue is “the default ” or the time in which you delay in paying a debt. “Although it is understandable that it happens that for X or Y reason could not pay and has a delay of 30 days, beyond this time can generate a negative report.”
This, in that, although you can make the payment later, the records of your payment habits can be very accurate and that gives clues to financial institutions to deny or provide a credit.
Other important factors
• Updated information
Jorge Saza, financial specialist, recommends that apart from being “good pay” it is very important to have your personal information updated with the entity with which you are linked, “because sometimes people want to” get lost “, but this is not convenient because it gives a negative signal to the banking entities. ”
Failure to give coherent or true reports to banks can even close the doors completely.
• Create a history
Both experts agree that it is important to start having credit experience because the system begins to see its good behavior and can make it easier to grant a loan.
• Know and manage your history
As a right, everyone should know and know what happens with their credit history. For this, you can make the consultation or request with the relevant credit bureaus and be aware of the registry that the entities with which you have debts, are making the respective report. Saza suggests doing this exercise at least 2 times a year.
• Small debts generate large damages
The financial specialist emphasizes that debts, however small, are debts and must be present and settle them on time. Sometimes, if you forget them, this remains in your report and in the future, it may be a reason for you to be denied credit, regardless of the amount.
• Caring for peace and save
Lilian Simbaqueta remembers that it is very important to always leave a debt fully settled and for that, it can be very important to have the documents that certify it: peace and safety.
• The person who saves can always have credit
A last and perhaps very important factor is to keep money saved in your accounts at the bank or have a savings product. This shows that you are a responsible person with your finances and that you know how important it is to have saved money.
credit card in front of laptop close up