If you are going to apply for a credit card you need to know what the minimum score is and its importance for credit institutions.
WHY IS THE CREDIT SCORE IMPORTANT?
The ideal credit to equip your home as you have always dreamed of it, and much more!
The score is an instrument that helps you to know the score of credit behavior.
This instrument generates a rating on a scale from bad to excellent; That is to say, the score or credit score is about your credit history with a certain score according to your financial behavior, so the credit granting institutions know how good a payer is is you are.
With the help of the credit score, you will know your credit situation which will allow you to improve your score to be a candidate for a credit card before financial institutions.
The higher your score, the better your chances of getting credit.
WHAT IS THE MINIMUM SCORE TO HAVE A CREDIT CARD?
The score evaluates your credit situation with a score on a scale ranging from 499 (low rating) to 775 (excellent rating). The minimum credit score to have a credit card is greater than 730 points in your score.
If the financial institution finds itself with a low score, for example, at 330, it means that the client does not pay their debts on time, this is discouraging for the bank and leaves you as a bad candidate.
On the other hand, if the score goes from 450 to 550, it means that person has some delay in their payments, but they could be considered. Finally, if it is a client who is up-to-date in his payments, has no debts or arrears, the entity will find a positive score higher than 730 points and will be an ideal candidate for a credit card.
WHERE TO CHECK THE SCORE?
To check your credit score, visit the page. It has a cost of 58 pesos and you only need your special credit report that you get on the same page, this document has all the information about your credits; It is also important that you have on hand a valid official identification and the last statement of your credit card, mortgage credit, or an automobile if you have one.
HOW TO UPLOAD MY SCORE QUICKLY?
Some tips to improve your credit score quickly are:
- Pay your credits on time so as not to affect your credit history.
- If you are behind in payment, catch up to continue paying on the established dates.
- In case your payments are late, go to your credit grantors to modify your payment plan.
- Before applying for a loan, consider your debt capacity. To know your debt capacity, subtract your fixed expenses from your monthly income, then multiply the result by 0.40. This will be the maximum capital for which you can borrow without jeopardizing your financial stability. Experts recommend that the borrowing capacity limit does not exceed 40% of monthly net income.
- Use credit responsibly.
What credit score do I need to refinance?
In addition to negotiating credit card interest rates, you should also consider refinancing loans if your credit score improves. You can refinance a loan for a lower interest rate, which will save you money over the life of the loan. However, just keep in mind that refinancing can incur additional fees, such as closing costs when you refinance a mortgage