Credit history is the detailed relationship that describes your bank or non-bank credits and is summarized in:
- How many credit cards do you handle: Visa, Mastercard, or American Express?
- How many loans are you paying?
- What do you owe?
- Are you up to date with your payments?
All this information generates your credit history and reports your behavior on how you use the money that you have been loaned and… well, if you pay on time you will have a good credit history that indicates that your “account is current.”
An ideal good credit history reaches a score between 650 and 750 points (on a scale of 400 to 850).
A Score is the credit score calculated with the information obtained from your payment history and issued by the Credit Bureau.
What good is having a good credit score for me?
If you have a good credit history, they will call you on the phone to loan you money. The higher your score, the more chances you have to get your credit application approved.
Having a good credit payment history makes your life easier … and that means:
- You access the best credit cards.
- Lowest rate mortgages
- You pay less for a loan to buy a car or to pay off loan payments. Therefore, you are saving money.
- You access a greater amount of money to be able to afford a mortgage.
- And also, it gives you the POWER to choose who lends you money and not they to you.
Score ranges Score
- From 400 to 500 points. It is a low credit score that makes it difficult to approve a loan or credit card.
- Above 500 points. You could qualify for a loan, but with high rates.
- Between 650 and 750 points. You are attractive to banks, it is good to an excellent score. You will likely get moderate to competitive rates.
- The highest score is 850 points. You will probably get the lowest rates on the market.
INFONAVIT also checks your credit history
The Institute of the National Housing Fund for Workers (INFONAVIT) is a public housing program that offers credit to Mexicans, so they can buy their own homes, build or remodel their homes.
And a good history of credit payments before INFONAVIT will help you obtain a greater line of credit to be able to mortgage yourself.
Recently, their requirements changed. Here we bring you the updated information requested by the Institute.
To access a loan, the first thing they do is pre-qualify to see if you are a candidate for a loan. It is a filter that the Institute does before approving a loan to know if you meet the minimum requirements to grant a loan.
To prequalify you, INFONAVIT evaluates your work history:
- Do you receive a fixed salary or a stable monthly income?
- What is the company where you work?
- What is the amount of your salary?
- How old are you?
- Do you have savings in the Housing Subaccount?
In addition, INFONAVIT wants to make you the loan because it is its function, but it also wants to make sure by checking your history in the credit bureau if your salary covers the payment of the credit as it is a large sum of money.
It is optional for INFONAVIT to review your history.
If you authorize it: The Institute may grant a greater credit line of 80% of the total capacity of your credit. If you do not authorize checking your credit history, the total credit capacity will be reduced to 60%.
I recommend trying the INFONAVIT simulator. Calculate the average of your monthly salary concerning your age and the amount that could be loaned to you, how much you would pay monthly, the rate, the payment term, etc.
For example. If you are a person who is 35 years old and earns 5,000 pesos per month. INFONAVIT can lend you $ 340,556.00. You would pay $ 1,459.96 monthly, with a rate of 2.78% over a 28-year term.
If you have a bad history, you can also access a loan, but the amount will be less than what you requested.
Build a good credit history
- To know your free credit history. Request your Special Credit Report from the Credit Bureau.
- At the same time or once you have obtained your Special Credit Report, request My Score. It is a “key” document that completes your report. It is important because it helps you know the status of your current credit situation and gives you advice on how to improve it. The Score Score is a 3-digit figure that ranges from 400 to 850 points and qualifies if you are a good payer.
- If you fall behind on payments, catch up as soon as you can. It’s the single most significant thing you can do to build a good track record.
- Don’t be tempted to apply for new credit cards that you don’t need.
- All is in your hands. You are the only one who can improve your credit, paying before the due date. If you do not pay on time, you are affecting your history and your score, significantly.