Are you tired of being denied your credit applications? See what you need to do in practice to improve your credit score.
Are you looking to apply for a line of credit to get out of debt? Before doing this, know that it is very important to see how to increase your credit score.
That’s because, by following some simple and efficient tips, you can increase your chances of being approved for a loan credit card, among other requests for financial products and services.
What’s more, even if your score is already high, that doesn’t mean you can’t improve over time.
Therefore, in this article, you will know the main tips on how to increase your score in practice.
What will you learn…
- What is a credit score?
- 6 Tips on how to increase score fast
- Why is it important to increase the score?
- Main reasons that lead you to have a low score
- Other questions about how to increase your credit score
- How to increase the score in a few days?
- Best apps to increase your score
- What is the ideal score?
- How much does it cost to increase the score?
- How long does it take to increase the score?
- Main precautions to avoid falling into scams
What is a credit score?
A credit score is a score that ranges from 0 to 1,000. Basically, this score represents whether you have been paying your bills on time or not.
Credit Score Panel
In other words, the score reflects your payment habits, as well as your relationship with companies, banks, and commerce in general.
Therefore, the score is taken into account when you apply for any type of credit ( loan, financing, credit card, among others).
That is, the financial institution will first evaluate your credit score to see if it is worth approving the credit line for you or not.
This process is done during the company’s or bank’s internal credit analysis. Therefore, the score is not the only point evaluated when approving or denying a customer’s request. However, this score is one of the most important items within a credit analysis.
6 Tips on how to increase score fast
Now that you know what the score is and how it works, it’s time to learn how to increase your score. Check out!
Credit Score Score
Get out of debt
Since the score reflects your payment habits, it is impossible to raise the score and get an excellent score with a dirty name.
So, if you have debts, organize your financial life to pay them off as soon as possible. See below for some ways to do this.
- Make a withdrawal of all your debts;
- Know the total amount of your debts as well as creditors, interest rate, etc.;
- Sort your debts in descending order of interest rate;
- Understand your financial reality;
- Set a monthly savings goal based on your conditions;
- Try to renegotiate your debts;
- Make a financial plan, so you don’t go off the rails;
- Track your financial life.
So, putting these tips into practice, we are sure you will guarantee a super important point to increase your score.
Pay your bills on time.
A good payer always pays his bills on time. In this way, it guarantees high chances of getting credit in the market.
So, keep track of all your debts to pay them on time. An excellent way to do this is using financial control applications.
After all, through these tools, you can manage everything that comes in and out of your pocket.
In Mobile Controle, for example, it is possible to register expenses that have not yet been paid and set a date to make the payment.
Thus, the app notifies you when your expenses are close to maturity, so you can meet your obligations.
Update your details at the credit bureaus
Maybe you don’t know what a credit bureau is, but you’ve certainly heard of SPC or Serasa, right?
So, SPC and Serasa are the two main examples of credit bureaus.
In summary, the operation of these platforms consists of providing information on consumer behavior when it comes to credit.
Therefore, keeping your data up to date at these institutions helps you increase your score.
Learn how to check your CPF by name and get to know these and other credit bureaus:!
Activate Positive Registration
The positive register was established by Law 12,414/2011 and worked as a financial curriculum.
Through it, the companies in which you apply for credit can see how you behave in the payment of their invoices.
The inclusion in the Positive Registry is automatic for all consumers who have acquired loans, financing, or made purchases on installments, for example.
Although the registration is automatic, the consumer who chooses not to be part of the database can ask to leave. Likewise, you can also request activation.
It is worth mentioning that both the registration in the Positive Registry and the consultation of your payment history are services offered free of charge.
Have accounts in your name
As the score indicates whether you are a good payer or not, if you do not have accounts in your name, an assertive analysis of your payments becomes unfeasible.
Therefore, having accounts in your name is an advantage when it comes to increasing your score. However, remember that paying on time is what counts positively in your score.
Keep track of finances.
Financial control is critical to ensuring the health of our finances.
Therefore, review your financial habits identify and change bad attitudes that harm your relationship with Money.
In a practical way:
- Know your fixed and variable expenses;
- Use a financial manager;
- Make shopping lists;
- Register the inflow and outflow of Money;
- Save monthly;
- Plan your financial life;
- Set and track the monthly budget, etc.
Why is it important to increase the score?
A credit score is much more than a simple score that ranges from 0 to 1,000. It is a reflection of the consumer’s financial life and can help him take more control of his own finances.
In addition, it is through it that companies and banks can verify the risk of granting credit to you. It works as follows:
- Up to 300 points: high risk of not paying the contracted credit;
- Between 300 and 700 points: medium risk of not paying the contracted credit;
- Above 700 points: low risk of not paying the contracted credit.
Depending on what your score is, you can already have an idea whether or not you will be approved in your credit applications.
Therefore, it is essential to know how to increase the score to see if you need to change any financial habits that will help you to be approved in future requests.
In this sense, the idea is to keep the commitment to pay your bills on time and keep your name clean, avoiding indebtedness.
Main reasons that lead you to have a low score
When you have a low score (below 300 points), companies and financial institutions that see your score consider you to be a bad payer. That is, the risk of default is very high, which causes your credit request to be denied.
With this, the chances of you getting financing, a loan, or even a credit card for negative people are lower.
It is from this that you must undergo a financial reeducation and understand what habits are harming you in the credit market. Discover the main ones below:
- Delay paying bills and debts;
- Make many credit requests, one after the other;
- Do not have accounts in your name;
- Asking for an exaggerated limit increase, which does not match your financial profile.
In view of this, seek to know some tips on how to increase the score, for example: pay off your debts, make your Positive Registration, avoid incurring new debts, among others.
Other questions about how to increase your credit score
How to increase the score in a few days?
You can’t raise your score overnight. This change takes time, so the best way is to invest in good financial habits.
Therefore, when we talk about good financial habits, we are referring to the following practices that you can apply in your daily life:
- Keep your data updated in credit bureaus,
- Clear your name and settle arrears;
- I prefer installment purchases, so you don’t have to deal with paying new debts for a long period of time;
- Do your financial planning to keep the payment of expenses in order.
Best apps to increase your score
Among the various ways to increase the score, one of the most efficient is to rely on the help of financial applications. With these tools, you can better control your finances.
Check out three great options below!
financial management app
When it comes to financial organization, Mobills is the best app today.
With the help of this tool, you can track your spending, manage credit cards, set goals, set up a financial plan, and much more.
Thus, through the control of finances, it is much easier to increase the credit score.
52 Weeks to Save Money
The 52 weeks app is a tool that challenges you to Save Money. So, with the help of this app, you can save more to pay off your debts and increase your score.
With the help of this challenge, you will be able to raise up to R$13,780 in 52 weeks (1 year), starting with just R$10 in the first week. Access the website!
Serasa: CPF Consultation
Available for Android and iOS, with the Serasa app, you can check your CPF and Score for free.
In other words, with this app, it’s easier to follow your progress now that you know how to control your financial life and save money.
What is the ideal score?
Taking into account that below 300 points, the consumer has a high risk of default and medium risk between 300 and 700 points, we can say that the ideal score is above 700.
So, if you want to improve your financial life and guarantee your credit chances in the market, you need to increase your score and get as close to 1,000 points as possible.
How much does it cost to increase the score?
As we saw earlier, to increase the score, we basically need to take better care of our Money and stay debt-free.
So we don’t have to pay anything to increase our score! But yes, have a healthy financial life.
However, many scammers offer this type of service. So be careful not to fall for that kind of scam!
How long does it take to increase the score?
Many people want to know “How to increase my urgent score?”. However, this process can be slow, depending on your current financial situation.
In other words, if your ability to save money is much less than the total amount of your debts, it will likely take you longer to pay them off.
So, knowing that our score depends on this regularization, you will need to be patient to get what you want.
But other factors, such as keeping your data up to date in the credit bureaus and opening the Positive Registry, can help you to increase your score more quickly.
Main precautions to avoid falling into scams
The Credit Score basically works as a parameter that evaluates whether you are a good payer or not. For example, he contributes to your approval when you apply for a loan.
Therefore, it is essential to look for ways to increase your score. However, scammers take advantage of this situation to deceive us.
Therefore, it is very important to be careful not to fall into scams. Check out some tips:
- Remember that you don’t have to pay anything to increase your score;
- Do not pass your personal data and documents to strangers;
- The more attractive the offer, the greater the chance of a scam;
- Have patience and discipline to improve your financial life and, consequently, your score.
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