When we apply for a loan, it is usual for the financial institution in question to ask us for our credit history to assess whether we are good candidates to receive it. In this article we tell you what credit history is, how to ask for it and we give you a series of tips to have an excellent credit history.
Credit history: what is it?
The credit history or credit history is a report that includes all the important information about the financial behavior of an individual . The document contains everything related to pending invoices or debts, as well as whether you have kept your payments up to date. This allows the bank to know what is your way of managing the bonds and, based on this information, make the decision whether or not to grant you the credit.
The preparation of the credit history is carried out from the data provided by different financial companies such as electricity, telephone, car, insurance companies, among others.
Tips for having a good credit history
Maintaining good financial health is paramount to achieving optimal credit history. It can happen to all of us that some specific month we are late in paying bills, but if this becomes a frequent behavior you can have problems and seriously damage your credit history.
The actions that improve your credit history are the following:
- Have a credit card or line .
- Have savings greater than the loan fee you want to apply for.
- Maintain a positive balance in your checking account the last months before applying for the credit.
- Have a mortgage or loan granted.
- Have a medium / high income.
On the other hand, the facts that make it worse are:
- Return expense receipts.
- Being on a delinquent list .
- Contract microcredits.
- Take overdrafts into account.
- Have defaults that can trigger liens.