How to increase my credit score? Every citizen living in the United States of America has a Social Security Number (SSN) number attached to it and has a factor that determines just about everything, is the Credit Score – credit report. The qualification of a person is simply measured through points.
That’s what you read and … there’s nothing to it. To process all this credit information, there are 3 most important companies that do the calculations to have the credit score. Equifax , Experian and TransUnion .
Another company that makes all the difference in this process – Fair Isaac Corporation, also known as FICO, was the first institution to create a system model as what they currently have that is Credit Score in the year 1958. In the FICO system, the score minimum credit is 300 and the maximum of 850 points, and 60% of the credit reports are 650 and 799 points, above this is exceptional.
What is the best score on the Score?
A good credit score is around 750 points, with this you can do almost everything when it comes to people loans, financing and services and financial products. My credit score is 600 , is that bad? Yes, 600 points is considered a bad or rotten credit. SCPC and Serasa credit scores have been released since the beginning of the month.
In Brazil, the Score starts at 300 and goes up to 1000 points. The game starts to look good from 701 points.
It is a preponderant factor in the life of the citizen since the Credit Score tells you what you can buy and how often you can pay. However, it has benefits, with good credit score , the citizen has access to lower interest rates, this is due to the risk stated in the report.
The influence of the score on financial life
Each time a US citizen or SSN carrier, corresponding to the Brazilian CPF, buys a financed product or service and pays everything up to the end, some points are added to the report.
But, on the contrary, every time a payment is not made and left behind for accounts and debts, some points are deducted from the Credit Score. The influence of the score is so great that it can change a person’s life.
To form the calculation, much information is used in the Credit Score, an example: the number of times the person accessed the financial market in search of credit, loans, credit cards or credit products and financial services. Read more on our site the “My Credit Score” series of articles.
Over the years as a positive credit score , your report starts favoring higher jumps, an above-average score when buying a home or a vehicle with much lower interest rates.
Or the other way around. As a low score, it shows to those who are selling to you that you are facing a risk buyer and therefore the interest rates should be higher or if you want, you can decide not to sell you anything at all.
Serasa, SPC Brasil and SCPC, Boa Vista – what are they?
They are private companies that measure the Score and allow the consultation of the credit reports of the Brazilian citizen. In Brazil, a model like the American Credit Score would let a lot of people go wrong, in my opinion, the Serasa system and the SPC do not have transparency, our credit system shows simply what you did not pay for, but it does not show if you honored the credit responsibilities assumed in us for many years.
Currently we have a system called ” Positive Registration ” but it is mandatory and few people have joined or know that the punctuation system exists to benefit who is enrolled in it. It is worth remembering that Credit Score is used even to look for a job, and many companies make use of the query to hire their employees.
My credit score needs to be high?
The Score is based on showing the degree of responsibility that a citizen has about his or her personal financial finances and the way he conducts his or her life.
Of course, if you, for economic reasons, ended up ruining your credit and are currently with the dirty name, with restriction on Serasa and SPC and can not get credit anywhere, you can start eliminating your negative points and start a process to increase Score , as is happening to a lot of people now.