To apply for loans and financing you need to keep an eye on your credit score. It involves your financial image to the creditor institutions. But what matters most at this point is having a high score to get the release. And easier. If you already know what your performance is, and want to know: ” how to increase my score”.
What is credit score?
Before we answer your question about how to increase my score, do you know exactly what determines your credit score ?
The score analysis is done by financial institutions, such as Sasara and SCC. They evaluate your debt history, consumer habits and issues such as marital status and whether or not you are employed.
This assessment aims to understand your default risk when applying for a loan or financing.
A good score, that is, a good score, is one that is above 700 points, in a measuring ruler that comprises from one to 1,000, as you can see in the table below:
|Points / Score||Default risk|
|Up to 300 points||Rich high|
|Between 300 and 700 points||Average risk|
|Above 700 points||Low risk|
We’ve made the video below to show you how the score works and with tips for improving your score.
How to increase my score?
1 – Clear your name
To increase your score , nothing better than a “clean” name on the market . So, how about renegotiating your outstanding debts and getting your Individual Taxpayer ID (CPF) from the list of defaulters?
Make contact with the company (s) in which you have debts and ask for help to renegotiate them. This practice is also interesting for companies, who will be more likely to receive the amount owed, so it is easier for you to resolve.
But be careful when it comes to renegotiating. New interest and fees may be included and you need to be prepared to make that new commitment.
It is worth mentioning that many advertisements promise to clear your name and increase your score , but it is a coup. Consult official credit protection agencies before undertaking any activity.
2 – Do not delay your bills
Paying bills on time seems kind of obvious with regards to increasing your score . But believe me, paying your bills before the due date can help you raise your score even more.
3 – Updated data
When consulting your CPF, the credit companies will have access to your data such as name, date of birth, address and telephone number. You need to be careful to always keep this information up to date.
So if you changed your address or changed your phone number, be sure to correct your referrals at a local agency. Or online portals.
4 – Positive Registration
Another way to increase your score is to register with the Positive Register. It brings together your entire financial profile, not just the information from unpaid accounts. With it, you allow credit institutions to make a more accurate and individual analysis of your history.
5 – Banks
Your bank has its own credit score and evaluation policy. It considers your financial situation and the bank’s products, such as investments, consortia and cards, that you have acquired. Another factor that helps to increase your score with the bank is you always use your credit card for sight or term purchases.
6 – CPF
Last, but not least, your score tends to be lower for each credit query performed on your CPF. This is because, every company that consults their registration, is registered in Sasara and SCC for 90 days and having several searches can mean financial instability on the part of the consumer.