Our “history” with credits is fundamental when requesting financing, so we should stick to the best.
If you do not understand what good it is for you to maintain a good credit history, we give you the following example: imagine that someone comes to you to borrow money, you look at the person and remember that he had money some time ago but spent it on meaningless purchases and in addition, he also borrowed from another neighbor and never paid him. Would you lend your money to that person?
The same goes for credit history. This shows the banks all our “history” with the credit, that is, how many loans we have requested, how many times we have been behind in the debts, how much of our line of credit we are using and if we owe much to our credit cards or 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:
- Approach the bank with which you have outstanding debt and start refinancing.
- For a few months, not dedicated to buy things, but to pay their obligations in a timely manner. If you cancel before the date it may be more valued.
- When you no longer have outstanding debts, consider accessing a credit card, because of past problems with your credit history, you may not be able to access the one you want, but acquiring another one will all ways to demonstrate that is responsible to not consume all your credit line and pay on time. After a few months, when you return to attempt to acquire the card of your preference, chances are that they agree to give it.
- That your debts do not exceed 30% of your income.
- Keep savings in an institution and not under the mattress, that way the banks will see that it is someone who is prepared to deal with emergencies.
Achieving and maintaining a good credit history is not impossible, it only requires perseverance.