How to increase credit score?

Do you want to increase your credit score and do not know how? Have you ever had a credit application denied and do you think the reason is low credit score?

To get easier, first of all, you need to understand what credit score is and how it works. It is important to already know that raising credit score is not an easy task and requires organization and discipline.

What is credit score?

What is credit score?

The credit score is a score that indicates the probability of paying bills on time or not. This calculation is based on your payment history and consumer behavior.

Before releasing your installment purchase order, credit card or loan, companies look for information to know how you have behaved in relation to your debts.

Companies that provide credit (shops, banks and financial institutions) and service providers (internet, pay TV, mobile and fixed telephony) refer to their score.

Each company has its own criteria and policies for granting credit or service, that is, there is no rule.

That way, you can be seen as a positive consumer, the “good payer,” or the one who shows lack of commitment, though unforeseen, such as job loss.


How does the credit score work?

How does the credit score work?

When an account is overdue, companies that record their personal data and outstanding debts, such as the Credit Protection Service (SPC) and Serasa, can be triggered.

Likewise, they track when you pay your bills on time. Through systems, other companies have access to this information.

The more delays and backlogs you have, the more likely you are to have a low credit score. So if you have had any requests denied, do not be discouraged, your credit score score is not definitive.

Despite this, having a good credit score does not guarantee credit to fulfill all your desires, such as financing a car or an apartment.


Credit Score Score

Credit Score Score

In more common cases, the score of the credit score varies from 0 to 1000. The closer to 1000, the better seen you will be by the market. See the following table:

0 to 300 high risk of default in the next 12 months
301 to 700 average default risk in the next 12 months
701 to 1000 low default risk in the next 12 months


Is it possible to increase the credit score?

Is it possible to increase the credit score?

Yes, the credit score score has changes according to your consumer behavior. This process may take a while because you need to follow it for a few months to find out how you organize when it comes to paying bills.

How long does it take to increase the credit score? There is no exact answer to this question. It all depends on how you approach the problem.

Get started today to have positive attitudes if you want to increase your score faster. And see the following tips.

How to increase credit score?

Here are tips that help you improve your score and make it easier for you to get credit when you need it.

1) Negotiate your debts and clear your name

The first step to improving your credit score is to pay off all your outstanding debts and clear your name.

It’s time to face reality and seek the right solution to solve the problem: direct negotiation with the lender.

Only in this way is it possible to change the way the market analyzes your profile. Beware of companies that promise to clear your name or increase your credit score, as this is a scam.

To avoid falling into a trap, seek guidance from credit protection agencies. Ideally, you should pay all your debts in cash to get discounts. But if that is not possible, negotiate with installments that fit in your pocket.

If you have paid your debts and still continue with the low score, you have a reason. The credit score reflects the behavior of a consumer group with a similar profile, that is, no one will be judged by what they have just done.

The more recent your debt or negativity, the longer it will take to recover your credit score.

This means that even after clearing your name, your credit history or late payments continue to impact your credit score.

Therefore, regularize the situation as soon as possible and comply with the agreement with the lenders, to increase the credit score over time.


2) Pay your bills to maturity

Pay your bills by the due date to be able to increase your credit score faster. Try not to delay the payment of any debt.

Whenever possible, pay before the due date. This attitude is well regarded by the credit bureaus and their credit score scores tend to rise. Of course, if you forget, the important thing is to make the payment as soon as possible.

Automatic debit is a simple way to not miss any payments that most service providers offer.

An alternative is to include in the calendar of the cell phone and choose the option “alert”, so you will be warned. In that case, add all the necessary alerts for the month.


3) Update your data and make the Positive Registration

To improve your credit score, update your data on credit protection agencies. The more up-to-date the information provided, such as address, telephone and referrals (bank, card administrator, among others), the greater the possibility of increasing the credit score.

You can also avail to perform your Positive Registration, which functions as a financial curriculum. The Positive Registry records information about its financial attitudes, such as payment of bills, financing and loans.

With this, your financial history can be consulted by companies and you can get credit more easily if you are a good payer, of course.


4) Turn multiple debts into one

After renegotiating debts, starting to pay installments and having your name cleared, you can turn multiple debts into one.

Good alternative is to choose a personal loan with installments that fit in your pocket and anticipate the repayment of your debts.

In addition to lowering your total debt and paying less interest, you will not have to worry about paying multiple bills in the month.

With the maturity on a single date, it is simpler if you schedule for the payment and also reduce the possibility of forgetting. It is a smart move that can increase your credit score in no time.

Now that you already know the amount you need for personal loan, keep in mind how much you can afford, according to your income and total expenses.

Do not forget that the portion of the personal loan can not jeopardize the payment of essential expenses such as electricity bill and water. Only then will you be able to keep your accounts up to date without fuss and help increase your credit score. Good right?


Credit score: what are the main myths?

Credit score: what are the main myths?

CPF on the invoice increases the score. MYTH
The higher the income, the higher the score. MYTH
Checking the score decreases your score. MYTH


How do I apply for my personal loan?

The largest online credit mall, you increase your chances of getting your personal loan.

Without leaving home and with total security, you have access to various loan options, according to your profile. You do not have to waste time to look for the best loan in various banks and financial.

Credit Lender has several partners who evaluate your loan application at the same time, and in a few minutes, you can already know what loan options are available to you.


How Does Personal Payday Refinance Work?

Personal Payday loan refinancing functions as a renegotiation of consigned credit debt .

This is because, instead of releasing a new loan, the bank releases the customer the value of the installments he has already paid, so he can use again.

How Does Personal Payday Refinance Work?

How Does Personal Payday Refinance Work?

Personal Payday loan refinancing works as extra credit for clients who already have an open loan in a bank but have compromised the full salary / benefit limit that is earmarked for the use of Personal Payday.

When the client makes the request, the bank assesses whether he is eligible for refinancing, that is, whether he has already paid at least 20% to 30% of the current loan.

Recalling that the refinancing may not be approved, depending on the benefit and the conditions established by the Bank. Therefore, it is necessary to verify with the institution the possibility of refinancing.

After that, if refinancing is approved, the bank will restart the loan and the customer’s assignable margin. That is, it will release the value of the installments already paid, added to the amount that has not yet been removed.

Margin – This is the part of the salary that can be used to deduct the value of the installments of the Personal Payday loan. Learn more in the post: Margin: What is it and how does it work?

To better explain refinancing, let’s look at the example:

That is, the Bank added up the value of the 18 installments with those that had not yet been paid and divided the total value by 72 times.

What is the refinancing interest rate?

What is the refinancing interest rate?

The Personal Payday interest rates may vary by bank. They amounted to around 2.11% per month, being one of the lowest in the market, compared to other credit modalities.

It is important to remember that in refinancing, the interest rate should be equal to or less than the rate applied at the beginning of the loan. Thus, the installments will not be worth more than the current loan, which makes the process advantageous for those who request it.

How do I pay?

The refinancing installments are automatically deducted from the Personal Payday of the INSS beneficiary or public servant. The discount is made by the paying institution, be it the INSS, in the case of retirees and pensioners, or the SIAPE, in the case of municipal, federal or state public servants.

The Central Bank regulates that the amount of the discount can not exceed more than 30% of the beneficiary’s income . But if you want to pay a higher amount than the maximum stipulated by the margin, the client can request the advance of the installment, and thus, repay the loan faster.

Can I refinance in another bank?

Can I refinance in another bank?

No. Refinancing must be done at the same bank where you have the loan. To refinance in another bank, first, you need to do portability, which is to transfer your loan from one bank to another.

It is important to remember that you can only do portability if the Target Bank has the same or lower interest rate than your current bank.

For example, if the current interest rate is 2.10%, you can only carry your loan to another bank if the interest rate is equal to or less than 2.10%.

To learn more about loan portability, read: Bank Portability: Know what it is and know the main advantages .

know more

Refinancing can be helpful in many situations, but just like other credit operations, it is important that you evaluate your financial situation and the conditions offered by the bank before you place your order.

It is also important that you understand the operation well. So, read the post: Personal Payday Refinancing: Know the details of this operation and know everything about the process.

Denominated credit – a loan in a currency other than the currency of the country

Denominated credit – is a currency loan, granted in a currency other than the currency of the country in which it was obtained. Its repayment also takes place in the currency in which it was granted, and not in the currency of the state of which the borrower is resident. Under a denominated loan, its amount is converted into foreign currency upon preparation of a loan agreement based on the exchange rate applicable on that day in a given bank.

Characteristic for denominated loans is the fact that the borrower knows exactly the amount of his foreign currency debt, but does not know its amount in the currency of the country in which the loan was obtained. As a result, the borrower does not know what amount will be transferred to his account by the bank.

Currently in Poland almost no way to get a loan in a different currency than a zloty.


Interest formula

The interest rate on a mortgage in a foreign currency is based on the interest rate in foreign currency and not on interest rates based on the national currency rate of the given borrower. Therefore, a loan in foreign currency should be considered only if the interest rate is much lower there than the borrower can obtain from the liability contracted in its national currency.

Credit denominated and risk

Credit denominated and risk

A denominated loan is associated with a higher risk of increasing the value of debt than in the case of loans taken in the currency of the country in which it is obtained. This means that as a result of unfavorable movements in the currency markets, the amount to be paid increases significantly in relation to the amount originally borrowed by the borrower.

When taking out a loan denominated, attention should be paid to the issue of cyclical changes in exchange rates. Changes in the value of the national currency in relation to the currency in which the loan was obtained lead to exchange differences in the total loan amount. Depending on changes in the exchange rate of the loan currency to the national currency, the loan amount may decrease or increase. In the first case, this leads to capital savings for the borrower, and in the second it leads to capital loss.

Currency transformation

Currency transformation

If the loan value is large, it is possible to reduce or reduce the risk associated with currency exposure by hedging it. The borrower may authorize the management of the loan on his behalf (through a limited power of attorney), in which the intermediary will exchange the borrower’s debt incurred in a foreign currency at the time of its change in relation to the base currency. Effective action then transfers the debt of the borrower to the currency whose value decreases in relation to the base currency. The loan can then be converted back to the base currency (or other depreciating currency) at a better exchange rate, thereby reducing the loan value. Another advantage of this action is the free choice of a currency with a lower interest rate than the base currency, which means that the borrower can thus obtain significant interest savings.

Indexed credit

The opposite of the denominated loan is an indexed loan. It consists in the fact that the borrower knows exactly the amount of the loan expressed in dollar, which is converted into a foreign currency at the time of loan disbursement. If in the period between the conclusion of the loan agreement and its payment, the zloty appreciates in relation to the credit currency, then the debt in the foreign currency will increase.