Can’t you access a loan because of your credit score? Find out how the Credit Bureau works and what you can do to improve your score.
Accessing a mortgage loan to acquire a new home, improve your current mortgage, or mortgage your house to cover an emerging expense is a very good option if you want to obtain a low interest rate on your loan.
However, there are multiple obstacles to obtaining this type of financing, including having a positive rating from Buró de Crédito.
If you wonder how the Credit Bureau works and what measures you can take to raise your current score and thus access a mortgage loan, we recommend that you continue reading.
What factors determine your credit bureau score?
- ⚫ Payment history
- ⚫ Use of credit
- ⚫ Length of credit history
- ⚫ Credit mix
- ⚫ Consultations with the Credit Bureau
Although the way the works is by analyzing multiple factors in addition to your payment history. This element is one of the most important to determine your score in the credit report of any financial institution.
For this reason, if you are looking to enjoy a positive score, it is extremely important to cover the payments of any current credit in a timely manner and not fall into default, in order to have a positive payment behavior.
Use of the credit line
The use of the credit line refers to the comparison between the level of indebtedness that you can access. Against your current level of indebtedness.
To have a positive Credit Bureau score it is necessary that you do not use a percentage higher than 30 or 50% of your credit line. That is if you have a credit line of up to 800 thousand pesos. It is better than your debt it is not between 240 and 800 thousand pesos.
Length of credit history
The age of your credit history is also an important factor in determining the calculation of your score in the Credit Bureau. This is because credit-granting banks can better understand your credit behavior by studying a broader history.
Because of how the Credit Bureau works. Having a variety of different loans can also have a positive impact on your credit score. This can be achieved by having a mortgage loan at the same time as a credit card or a departmental card.
However, it is very important to handle your variety of loans carefully. Since if the Credit Bureau determines that you have an excessive number of loans or credit cards, your score will suffer.
Consultations with the Credit Bureau
Surprisingly, inquiries to the Credit Bureau also play a role in calculating your credit score. This occurs because by receiving multiple inquiries in a short period. This institution assumes that you are in a bad financial situation and therefore require multiple financing.
If you are looking to increase your Credit Bureau score. It is recommended that you only consult it once every 6 months, in addition, you should refrain from making a credit application immediately after another application is rejected.