What is your ideal credit score?
The Credit Score in Mexico is proposed by the Credit Bureau, many people are looking for how to get out of the Credit Bureau, but being part of it is not always a negative thing, what’s more, one as an individual or company can increase their chances of financing by being in the Credit Bureau but having a positive Score.
The credit score measures your behavior in your payments and your financial responsibility, a person with a disciplined credit portfolio is better than a person who is a ghost for financial institutions.
Factors that affect our Credit Score
Your Credit Score is a number that affects your daily life in ways you may never have imagined. More and more companies are beginning to verify their Credit Score to make decisions.
Your score is used to set interest rates on credit cards and loans, even to decide if you get approval for them and other financial products.
Given its importance, it is key to know what factors affect the credit history and credit score.
1. Payment history
Although it may not seem like the payment history is the number one reason for rejecting loans if our history is negative, therefore, it is also one of the fundamental and most important reasons to take care to increase our Credit Score. The payment history makes up the total of 35% of your credit score in Mexico, the reason is that an untimely or late payment can mean that the person has financial problems that can not be faced, and in the best case, If you have the possibilities but you are dealing with an irresponsible person or one who does not treat your earrings with importance.
Therefore we must avoid getting into problems such as cancellation, collection requirements, bankruptcy, repossession and execution can devastate your credit score, so it is almost impossible to get approval afterwards for any product that requires a good credit score.
What to do?
You will be asking yourself what you can do to avoid misbehavior, it is simple, the best thing you can do for your Credit Score is to make all the payments on time each month, you will keep a better control of your finances and your Score will wind aft.
2. Debt level
The level of the debt is the second most important factor, only 5% below the payment history is 30% of your credit score, together they have more power over your possibilities of requirement. The credit score calculations analyze some key factors related to your debt: the amount of debt you have in general, the proportion of credit card balances to your respective credit limit and the ratio of your loan balances to the amount original of each one.
What to do?
Although maintaining a good credit history is good for increasing your Credit Score, if you keep your consumption too close to your limit, even if you are making the appropriate payments, it will be seen as a risk factor for banks and financial entities that do not grant your credit. We loan for fear that you will fall into debt. Having high balances or too much debt can affect your credit score. The good news is that your credit score can improve in this area if you cancel the balances.
3. The seniority of your credit history affects your credit score
The history is 15% of your credit score and considers both the age of your oldest account and the average age of all your accounts.
Having an “old” credit rating is better for your credit score because it shows that you have a lot of experience managing credit. Opening new accounts can reduce your average credit age. For that reason, it is generally not a good idea to open several new accounts at the same time. You should also take into account that the card must be used, take out a credit card to increase your loan possibilities but not using it will not help at all and in the worst case, it will reduce your credit possibilities.
4. Variety in types of credit
There are three basic types of credit products:
Having types of services on your credit report is better for your credit score because it indicates that you have experience managing various types of financing. The types of credit are only 10% of your credit score, so not having a certain type of credit, for example, a loan, will not devastate your credit score.
5. Credit inquiries
Every time you make a request that requires a credit check, a call is made on your credit report. Keep your applications to a minimum to preserve your credit score. If you really need a loan, we recommend that you try to check with companies that provide loans without a bureau to avoid these queries.
The consultations represent 10% of your credit score. One or two consultations will not hurt much, but several consultations, especially in a short period of time, can cost many points.
The good news here is that only the inquiries made in the last 12 months are taken into account in your credit score. Queries fall from your credit report after that period.
How to know what is my Score?
My Score is a service by the Credit Bureau with a cost of $ 58 pesos, to perform your examination you can go to this link My Score. Remember to have on hand the information about your credit accounts (even if you do not use them) and details of any loan, mortgage or automotive of which you are a part.
The system of My score will offer you your number, you will be able to compare yourself with the rest of the Mexican population and in addition you will receive new advice in addition to those that Robinson Crusoe has brought in this installment for you.