If you want to find out everything about What is it and how to know and improve my rating, history or credit score in banks? , you are in the right place. Next we will dedicate ourselves to explaining to you everything related to the credit score, so if you are intrigued and interested in this topic, stay with us and continue reading this instructive article that we will explain for you.
What is it and how do I know my credit rating?
We can say that simply explained, your credit rating or credit score is a score assigned by the Credit Bureau, ranging from 400 points to 850 points. This means that your credit history will be summarized in a three-digit number , which expresses the behavior you have had with the credits you have requested.
This information is useful for creditors, since through this they can see how good you are at paying debts and your creditworthiness, and then be guided by that information and thus decide whether to grant you loans, the credit limit they will set and the rates of interest to be charged.
Now, when your score is low, this is reflected in red in the Credit Bureau score , but when it is something, it is reflected in green, which means that you have good payment habits , since you have paid your debts to time and due.
How to know or know my score or credit score?
To know what your rating is in the Credit Bureau, you must know how to check it correctly , which you can do by entering the website of the Bureau corresponding to your country , make the request and then when you access they will request certain specific information that you must provide.
These data can be mortgage or automobile loans and their folio number, credit limit, the number of accounts you have active, etc.
Once you have provided this information, you will be able to access your score and see how you are doing, of course, we have a duty to inform you that you will only be able to access your credit history for free once a year, because if you want to review it again It will cost you about $ 58, although it is not recommended to review it much because it can affect your score.
How to improve my credit rating, history or score?
If you want to find out the best secrets to improve your credit score , then keep reading this post because below we will show you some tips to achieve it:
- You pay your bills on time: both your credit cards and other debts you have must be paid on time, since your payment history represents 35% of the total credit rating , so you should strive not to be late with any payment
- Maintain a variety of types of credit: if you manage to pay different credits at the same time , such as paying credit cards, a student loan and a car loan at the same time, it would show that you can deal with several types of credit, which represents a 10% of your score
- Get a personal loan to pay your credit card: one way to improve your credit score is to apply for personal bank loans in order to pay your credit card debt , and it is very likely that the interest rates on that loan are even lower than the card
- Avoid opening too many new credit accounts: when you open too many new credit accounts at the same time, what you do is reduce the time of use or average age of your accounts, which leads to lower your credit rating
- Keep your oldest credit card current : this should be done because, creditors pay attention to your credit history and the duration of it, so if you cancel your oldest card you can lose that rating, which will cause your score to go down
- Rigorously review your credit reports: you should review your credit reports for errors, since a mistake in this can be very expensive, so the best thing you can do is request a free report every four months from a different agency through the web portal annualcreditreport.com and request that any errors be corrected.
