The Credit Score is a fundamental indicator that shows us the ease with which we can obtain a financial loan or that the bank offers us a credit or debit card. And for this, a calculation is made to determine the feasibility of fulfilling the corresponding commitments.
How the score is composed
Although the score ranges from 0 to 1,000 points, it is established within a four-point table to determine risk levels for each individual or legal entity.
- Less than 619 points: High risk
- Between 620 and 649 points: Medium risk
- Between 650 and 749: Low risk
- More than 750 points: Zero risk
How to determine my credit score
The way to know exactly the score that the person has is through platforms such as Equifax or El Veraz. They will obtain this information and they will give it to you in case you need it. But it has a cost and it is not usually low at all, so if it is not urgent, we do not recommend making an expense of that magnitude.
How to know your credit score for free
Although it is not as accurate as with the consultations to private companies that are specifically responsible for this, at least you will be able to know an estimated value.
The first thing you should do is check the status of your debts with the BCRA. Just by entering the platform, you will be able to know if you are debt-free or not.
A fundamental factor to know is to analyze the delays in your debt payments in case you have had them. Did you always make payments on time and in good shape? Have you ever had a delay in this regard?
And it doesn’t need to be a loan as such, but it can also be card maturities, for example.
In case you have taken a loan from a bank, the longer it has lasted, the better for the score. As long as you have paid with the corresponding formality as we have mentioned above.
Finally, the type of debt you have had has a lot to do with it. The ones that are of the mortgage or auto loan type are good and contribute positively.
Benefits of having a high score
The higher the credit score, the more benefits you can obtain from the banks. And it is not only a matter of agreeing to give you the corresponding credit, but they will also offer you benefits with the interest rate.
And it is that as it happens with any type of investment that is made, the lower the risk of non-payment on your part -or at least that the entity presumes-, the lower will be the rate that they will ask you in real terms.
How to improve the credit score or truthfulness score
The best recommendation that we can give you to optimize your level or bank score is that you comply with all the obligations assumed at the time of taking on the financial debt. Even if you can, try to automate all possible payments so as not to have any problems in this regard.
On the other hand, the sooner you use a credit card, the better. This will allow you to start building your credit history from an early age by thinking about the long term.
Finally, the best advice we can give you is to control your expenses. Although it is the hardest part, it is what will work best for you to access the best loan rates on the market thanks to a high credit score.