Manage your credit payments, plan your purchases, and improve your credit history. Learn how to do all of this in this article and build yourself an excellent credit history that will open many doors.
Your credit history is a report that tracks your behavior with all the credit you've applied for. This way, the bank can look at this data and assess whether you're a candidate for a loan or even an increase in your credit limit.
Maintaining a good credit history allows you to have access to greater financial opportunities. That is why it is so important. But how can you achieve this? Here are some good practices that you can consider:
1. Know your payment capacity
Before making financial commitments, it is important to determine your ability to pay. Roughly speaking, your debts should not exceed 30% of your income. Consider this to ensure an excellent credit history.
Also, keep in mind the fixed expenses you have to pay each month. This way, you will know what your limits are and whether you can take on new commitments. Also calculate a margin for possible unforeseen events. Ideally, even with the total of your expenses plus the amount of your credit, there will still be some money left in your account.
2. Punctuality in payments
This is one of the main tips for having an excellent credit history. By being responsible with payment dates, you will be demonstrating financial solidity, which is perceived by the bank as a good sign, as it will give the impression of a good payer.
Obviously, a one or two-day delay in paying a debt won't affect your credit history. However, if it becomes a constant, it will affect your credit history and could mean problems when applying for future credit.
3. Organize your finances
Being clear about your debts and income will allow you to have better financial health. This way, you can make payments on time without affecting your personal finances. This way, you will avoid having debts of any kind if you always organize yourself.
Finally, before making an expense, remember to evaluate whether it is really necessary. This way, you will not acquire debts that could cause you problems in the future. Being well organized, not only financially, will always be good for your life.
With a good credit history, you can access pre-approved credit more easily, and it will also be much easier to apply for another credit card or some type of loan that you need, because, in the eyes of agencies and financial institutions, you will not represent a risk, since you are a good payer, so your chances with them increase.