How to improve Credit Score and what do you gain from it

How to improve Credit Score and what do you gain from it

It is important to have a good rating in credit bureaus to access more products.

The credit ‘score’ is the score or qualification that people have before the financial system, it is the ‘business card’, the key to a healthy relationship with the financial system.

It is important to take care of your ‘score’ and have, as a basis for doing so, two premises: compliance and discipline.

However, according to Hernán Arcioni, CEO of Solvent, a ‘fintech’ that works for financial education, people need precisely that: learning.

” Implementing financial education in schools is key to combat the problem of lack of knowledge, but beyond these issues, which are the spring of public policy in each country, there are many things that every citizen, regardless of age or training, can know and do to protect your score and enjoy the benefits of keeping you healthy, “he added.

Thus, Solvent gives a series of recommendations so that you know how to take care of your score:

Knowledge and discipline:

We all have a history in credit bureaus, which comes from the report made by all kinds of entities (financial, commercial, public and private services, cooperatives, administrations of residential units and hypermarkets, among many others) on our habit of paying obligations acquired in installments. What makes the difference between being reported
positively or negatively is precisely the ‘score’, which is higher and positive to the
extent that there is compliance with the agreed payments. Be good pay, pay.

Don’t get over-indebted:

Verify that the share of these financial products or services purchased in installments does not exceed 35 – 40% of your income. In this way you will avoid, not only that your score is lowered due to having many obligations in force, but also an over-indebtedness that can end in making it impossible for you to comply with the payments, generating that unwanted negative report.
One of the important points for a good score is not to get into debt.

Ask questions and find out:

Before establishing a financial or commercial relationship with any entity, ask whether or not it makes a report to a credit bureau and to which one (s) it does. Read all the documentation regarding the product or service you are purchasing to know the conditions and make the best decision regarding terms, dates, amounts, and payment methods.

Avoid multiple requests:

Every time you request a loan, the entity will consult your financial resume in the central offices, precisely to make sure that your payment behavior is good. But multiple inquiries from different entities in a short period can lower your ‘score’, even more so if in several of them the product or service you requested was denied.

This generates distrust in the next entity that consults it and, probably, will add a new denial. Don’t mistreat your ‘score’.

Get to know yourself:

Find out about the credit bureaus existing in the country, such as Datacrédito, Central de Información Financiera (Cifin), Final check, Covinoc or Procrédito, among others. Check if they have an ‘online’ consultation system, a telephone, or any other means by which you can find out if you are being reported and if that report is positive or negative. Knowing it is the only way to control and take care of it.


If you have already consulted and know that your ‘score’ is low due to late payments, reach agreements with the entities, even in the case of small amounts. It is better to catch up, even with small installments, than to pay nothing.

Start small:

If you haven’t had credit experience, choose small, flexible credit options to get started. The ‘fintech’ sector leverages that first step through loans of small amounts and short terms, an opportunity in which, if there is a good payment habit, a healthy credit score will begin to be built, which in the long term will favor.

And what did you gain from having a good credit score?

This may be wondering, so the answer is the following:

  •  A better letter of introduction to the financial system or entities with which you want or need to establish a business relationship.
  •  Access to more financial products and services, and under better conditions.
  •  Option to solve an emergency that requires immediate availability of money.
  •  More options to finance life projects of great importance such as home, vehicle, study, or business
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By Michael Caine

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