Advertisements
Many people resort to financial loans or credit cards when they do not have an emergency fund in case of an unforeseen event.
However, things do not always go as expected because these people end up having their request denied, even though their name is clear.
Having a clean name is no longer a sign of credit in the market, now we have to face analysis from financial institutions, which work with the much feared credit score.
Many people still don't know what is credit score, If this is your case, keep reading. Next, we will unravel some mysteries about this “villain.”
What is a credit score?
It is nothing more than a score that indicates the possibility of a certain person paying their debts.
Advertisements
This count goes from 0 to 1,000, with 0 obviously being the lowest and worst score.
Therefore, the closer your score gets to zero, the more likely it is that you are a good payer.
As a result, the possibility of you getting credit is almost zero.
Of course, your score does not define exactly who you are, but banks take your score seriously.
This is because the information used to arrive at this calculation is detailed and based on your behavior as a payer.
But that’s not all, find out more in the next topic!
What is taken into account when defining my credit score?
The information used when stipulating the credit score there are many.
Therefore, they may be precise facts about you; from a very distant past or even aspects that have nothing to do with you.
First, let's look at some examples:
If you live at an address where the previous residents were in arrears and did not have a good reputation as a payer, this can harm you in the sum of credit score.
In general, the system can take the address relationship into account, but rest assured that this factor may not be unanimous.
Conclusive factors:
- Payment of overdue bills and invoices;
- Non-payment of bills and invoices;
- Marital status;
- Negative name;
- Your relationship with companies from which you have purchased a service.
These are the factors that weigh most when defining your score.
However, just as small actions can lower your credit score, opposing actions will increase it.
In other words, maintaining a good financial relationship in the market will make you be seen in a positive light, as a good payer.
The consequence of this is an increase in your Credit Score, which can happen gradually.
This increases the possibilities of obtaining financial products.
Well, you already know what is a credit score, now, if you are looking for financial products such as: personal loan or current account, you are in the right place!
If you are unsure about how to increase your score, I recommend reading of this article. THE Credit score He's not the villain, he could be the hero, it just depends on you, keep your accounts up to date!
