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What is credit history?


A credit history is the record of the products or services you acquire and with which you can demonstrate your payment behavior and thus identify if you have compliance and responsibility when acquiring a financial commitment.

Why build a good credit history?

Many times when we are young, we do not understand why it is important to have a good credit history and the truth is more important than we can imagine. Having a good credit history influences your credit score which is ultimately what banks look at to approve you for loan. In the country, the average age of people who acquire housing through a credit is between 25 and 40 years old, which means that with an average of 7 years of good financial life you could start buying your own home and many more projects for which you require money loans; in short, it is a springboard that will help you achieve your goals.

What is a credit score?

It is a kind of set of elements to which a score is assigned to define if a person can have a good degree of responsibility when it comes to assuming a debt. Some of these elements are:

  • Credit history (seniority)
  • Payment compliance
  • Number of debts

All this information is collected in credit bureaus that are in charge of compiling this data to organize them and thus facilitate the consultation of the financial entities at the moment of processing a credit or money loan for you.

What is a credit bureau?

The credit bureaus are institutions that collect and organize the information of all the financial movements of individuals in order to facilitate the consultation and understanding of this data.

How do credit bureaus collect data?

It is the responsibility of financial institutions to report to credit bureaus when someone acquires a financial product, when they pay for it and their behavior.

How to build a good credit history

There are many variables that count when it comes to building a good credit history; here are some keys.

Start as soon as possible:

In country the minimum age to acquire any financial obligation is 18; starting at this age is ideal for your credit history.

Plan your finances:

Organize your income and expenses in such a way that you leave room to acquire credit obligations with which you can build a good financial life.

Start with small obligations:

Do not start your credit life with a very large obligation as it can become heavy for you. This way you will get used to this type of responsibilities.

Be compliant and responsible:

Always pay on time and finish paying a debt; if for some reason you could not pay, do your best to catch up as soon as possible, this is perhaps the most important thing since if you have a good payment behavior, you will have positive reports in your credit history.

If you are self-employed, pay your social security:

With this habit you achieve many benefits for your life and it is also a positive point for your credit score.

Now you know how credit bureaus work and you know how to build a good credit history; apply this information in your life and you will achieve the goals you set for yourself.


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