If you do not understand what it is for you to maintain a good credit history, we give you the following example: Imagine that someone comes to borrow money, you look at the person and remember that you had money for a long time but spent it on meaningless purchases and that in addition, he also borrowed from another neighbor and never paid. Would you lend your money to that person?
The same goes for credit history
This shows banks all our “history” with credit, that is, how many loans we have requested, how many times we have fallen behind in debts, how much of our line of credit we are using and if we owe a lot to our credit cards or do not.
Therefore, maintaining a good track record is essential not only to access credits but also to achieve better rates and prove that we are good payers when renting a property.
If your track record lost a bit and fell into default, here are some recommendations to get back on track:
1. Approach the bank with which you have outstanding debt and start refinancing.
2. For a few months, do not devote yourself to buying things but to paying your obligations in a timely manner. If you cancel before the date it may be more valued.
3. When you no longer have outstanding debts, consider accessing a credit card , due to the previous problems with your history, you may not be able to access the one you want, but acquiring another will help you anyway to prove that you are not responsible. Consume your entire line of credit and pay on time. After a few months, when you try again to acquire the card of your choice, you will most likely agree to give it (if you want to see what the cards are available in the market, click here ).
4. That your debts do not exceed 30% of your income.
5. Keep savings in an institution and not under the mattress, that way the banks will see that it is someone who is prepared to face emergencies.
Getting and maintaining a good credit history is not impossible, it only requires perseverance.