How to improve my credit score 2021

by Lisa Baker

How to improve my credit score

One of the most important criteria that financial institutions take into account when authorizing a loan is the credit score. The credit score is a score that measures your behavior in the payment of loans. It is a score that is in a range between 449 and 775 points.

The fewer points your score has, the more risk it represents for the financial institution and the loan becomes unattractive or unviable. It is common for finance companies to reject loans requested by users with low credit scores and, if approved, they typically carry high interest rates.

A high credit score, on the other hand, represents safer credits for financial entities and the probabilities increase that different financing will be authorized. Having a good credit score gives you access to more credits and having better payment conditions.

For this reason, it is very important to take care of our credit score, which works as our letter of introduction to financial institutions. In today’s post we share a few recommendations to maintain and / or raise your credit score.

Pay in a timely manner

Naturally, this is one of the factors that impacts your credit rating the most. Paying on time tells the institutions that you are a responsible and compliant payer. It’s also a good idea to add more than the minimum payment to your account.

Payments made (or missed) more recently have more impact. This is why it is a good idea to always be up to date. It weighs more on your credit rating if you currently let a month go by without paying than if you were late in your payment 6 months ago, for example.

Take care of your level of debt

Having many credits is not a good message to communicate to institutions either. Having a lot of debt and being close to the limit of your line of credit not only increases the chances that you will not be able to meet your financial commitments, but also negatively affects your credit score. Be measured with your loans, taking into account your credit limit. It is advisable not to get too close to your credit limit since that, from the perspective of financial institutions, could be a sign that you cannot meet your credit commitments in a timely manner.

Number of bureau inquiries

Another aspect that takes into account the credit score is the number of inquiries to your credit history. If it is detected that a client’s history is constantly reviewed by financial institutions, it could be a sign that the person is looking for loans that other institutions have declined and this has a negative impact on your score.


Seniority is a positive factor in calculating your grade. The longer the information that banks have available about your financial behavior covers, the easier it is for them to trust you.

Related Posts

Leave a Comment