Ensuring a high score is essential to pass the credit analysis of financial institutions for the release of loans, financing and other types of credit.
If your score is not the best, know that it is possible to adopt some measures to improve your score. Check out the text below for unmissable tips to get a high score!
What is high score?
The score is the term used to refer to the scoring system of credit protection agencies. Its main purpose is to indicate the degree of financial responsibility of a person or company.
In general, the score ranges from 0 to 1 thousand, and the value is calculated based on various information, such as debt payment history, credit card use and consumption habits. High scores are obtained when there are no overdue debts, which is a strong indication of good management of personal financial resources.
That is, having a high score conveys confidence to banks if the individual or legal entity requests the acquisition of a line of credit. It is worth mentioning that each credit protection agency provides information related to specific types of debt and each bureau has its own scoring program.
Therefore, it is always recommended to consult the online platforms of the following bureaus:
- Serasa
- SPC
- Quod
- Good view.
What is high score for?
In general, the usefulness of the score is intrinsically associated with the release of lines of credit by financial institutions. By evaluating the applicant’s profile, banks define whether or not it is a good deal to grant the applicant a loan or credit card.
A high score means that the person or company has a good credit history, pays its debts and maintains a good relationship with banks and fintechs. Therefore, having a high score guarantees better chances of approve credit cardas well as releasing loans and financing with more accessible interest rates and installment conditions.
How to have a high score? 5 tips
The score is considered high above 500. However, if you haven’t reached that minimum value, don’t worry: you can improve your score with small daily activities. Check out:
1. Pay your invoices in advance
Paying your invoices before the deadline has a positive impact on your score. After all, this is an indication that you have planned your finances properly.
However, it is not worth paying in advance and having a negative balance, see? Frequently contracting overdrafts reduces your score, as we will explain below.
2. Avoid overdraft
The overdraft credit modality was developed to help the account holder in unexpected moments. Its sporadic use does not affect the score, but the situation changes when having a negative balance becomes a constant in the person’s financial life.
Always having an overdraft basically tells credit institutions that you are unable to pay your day-to-day debts, so imagine the situation regarding loans and financing.
3. Renegotiate old debts
Having trouble paying off your bank debts? Then, request the renegotiation of fees and installments, in order to make payment more accessible. Thus, you avoid default and also improve your score.
5. Take out insurance
Taking out credit insurance, such as bail insurance, is interpreted as a sign of financial organization, as it is a measure to minimize default risks and potential financial losses. Even the simple act of requesting insurance quotes already guarantees a positive impact on your score.
Remember, however, that no single measure will miraculously raise your score overnight. It takes persistence and a lot of discipline to progressively stabilize your financial situation!
