Is your credit score low? How can you increase your score? Don't worry, there are techniques for rebuilding your financial reputation and increasing your score. Follow these tips to make creditors trust you again.

Firstly, remember that your credit score is an assessment that lenders use to decide whether or not to grant you credit. If you want to buy a property, a car or a new mobile phone plan, your credit rating will be checked.

Getting to know the Credit Score

The credit score is the most important score in your financial life: it tells you how likely you are to pay a bill on time and honour your commitments

This "score" is linked to the CPF and ranges from 0 to 1000. It is calculated for credit protection services such as SPC and Serasa.

The higher your score, the better your reputation in the credit market. This means more opportunities to sign contracts for financial products such as loans, financing, credit cards and other services.

Very high scores can mean not only access for you, but also a guarantee of the best deal on these products, with the lowest interest rates, the best payment conditions and other benefits.

 How to increase your credit score

There is no easy way or person who can help you increase your score. And there is definitely no company that can increase your score - if you see any adverts promising this, report them as soon as possible. 

Not having old problems on your credit report is definitely important for your score. A good credit rating is a consideration whenever you borrow money, whether it's to buy a car, take out a mortgage or apply for a credit card. 

A bad credit score can increase your interest rate or force you to have a guarantor, if your credit application is approved. Monitoring your credit rating is therefore an important financial responsibility.

What is considered a good score?

A good score is usually between 600 and 900. If your score is below 500, you may have trouble getting a loan or other credit. If it's over 700, you're considered an excellent payer.

To improve your credit score, you'll need to earn the trust of your creditors by showing that you have good habits. To do this, it's important to focus on a few key points:

Budget your bills correctly

Have you overcome financial problems in the past and are starting to consider taking out a new loan to finance a project? That's great! But before you do anything, start by identifying the causes that led you into debt to avoid falling into the same traps. That way, you'll start off on the right foot.

Make your payments in full

If you're the type who pays the minimum on your credit card, you need to do things differently to increase your credit score. Of course, paying the minimum amount is better than nothing. But if your goal is to improve your score, you still need to pay your bill in full and on time.

Make a payment as soon as possible

Another way to improve your credit rating is to pay your bills, cards and credit lines on time. This means paying BEFORE the due date, not waiting until the day it's due. 

This applies even to small bills, as any delay has an impact on your score. Also, be aware that the later you pay, the more your rating will be affected.

Don't use all your credit

Use less than 70% of your credit limit. For example, if you have a limit of R$ 1,000 on your credit card, never use more than R$ 700. In this way, the institutions that analyse your score will understand that your financial life is in order. Your score at the banks will also improve.

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Keep your old accounts open

It's always good to have a long credit history. So if you don't need to change banks, don't do it for nothing. Keep old accounts (card or credit line) for as long as possible.

This will allow you to show creditors that you are capable of maintaining stability. And if your history shows that you are a good payer in the long term, this will be positive for your score!  

Check your credit report

If you're applying for a loan, always ask to see your credit report first to make sure there are no mistakes. Even if you're not in need of a new line of credit, it's even advisable to check your file once a year. That way, you can analyse whether there are any incorrect entries on your CPF.

Have few credit cards

It's generally not good practice to have several credit cards. For many people, this leads to a lot of debt. What's more, having several identical types of loans (such as several credit cards) is bad for your rating. So whenever possible, use one credit card - the one you've had the longest.

Vary your loans

Try to vary your types of loans. A car loan, a credit card, a home loan are all different types of loans. Of course, there is always the risk of getting into debt when you multiply your loans. But if you're able to handle several types of loan and make all the repayments on time, this will give lenders confidence.

Avoid making too many credit applications

Making repeated applications for loans suggests that you run the risk of getting into debt. And if you have several denied applications, it's still bad for your score.

So whenever possible, avoid it:

• Applying for a credit line just to see if it will be accepted
• Accept a credit card for discounts or gifts

Instead, make several requests at the same time to various institutions. If you make several requests in a fortnight, this will only count as one enquiry to your file.

For example, if you apply for a home loan with three different banks in the same week, this will be considered as a single enquiry from your file.

On the other hand, if you make the requests two months apart, three consultations will be recorded, which could jeopardise your rating.

Show your stability

Obviously, it's not something you can always control, but lenders like to see their clients with a stable address and job. This reassures them about your ability to pay. As much as possible :

• Stay at the same address
• Have a stable job

Conclusion

Having a high score is just a matter of planning. In order to keep your score rising, it's also important to have the right plan. The Top Score Method course is the best way to plan efficiently!

The course, made up of recorded lessons, is fully accessible for 12 months so you can watch it whenever you want and put it into practice. Remember that students have a 7-day cancellation guarantee and can get all their money back.

Without a doubt, the personalised support, the quality of the lessons and this super guarantee make it stand out, the best brazilian course to increase your score.

Get to know the Top Score Method:
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Low Credit Score: The credit score is a key factor in the approval of any financial service with the bank, so it's essential to have a high score in order to be approved straight away.

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