Have excellent score !!! The credit query to Serasa or SPC and other means will always exist whether you like it or not, just as your credit score will define what kind of consumer you are. A good score is critical to getting personal credit, more affordable real estate mortgages and loans, as well as cheaper car loans and consumer durables.
How to have an Excellent Score?
In addition to what was said in the paragraph above, it can also play an important role in determining the value of your auto insurance and other insurance. There are hundreds of factors that influence punctuation that are analyzed and reported by the “Serasa Score” and “Positive Consumer Boa Vista” that concentrate some key metrics.
You should already know how credit score works, how it is calculated and how important your credit report information is. In Brazil there are three main credit agencies that can generate their report on time. By the way, no one can claim that you do not have access to reviewing this information, you can even get the full report for free if you register for these agencies.
Anyway, not everything is perfect, you may be proud to have an excellent credit score and score , however, when you applied for a small loan or credit card, you were denied. How could this have happened? Despite what many of us believe, an excellent credit score is no guarantee of approval or acceptance. We list five reasons why you may be refused, even if you have an excellent score above 700.
1. You have a lot of debt in relation to your income
Most people do not understand that the credit score does not know everything, for example it does not know how much money you earn regardless of your income, even you having an excellent score, making payments always up to date and keeping the use of credit low.
If you are wanting to apply for a home equity loan for example, the bank or lender will want to understand how much money you earn and how much you pay off of debt with that money earned. Even if you have a great score, you may be rejected for having too much debt in progress.
2. Your credit history is too short
It takes a surprisingly short time to get a great score. After six months, the credit bureaus have enough data to calculate your credit score and create your Score, especially if you are enrolled in the positive register. After a year, you can easily get a good score (625-699) or very good (700-799).
However, some lenders require people to have a minimum credit history period. You may have managed your credit well in the last nine months, but that does not mean that you can qualify for a real estate mortgage or high value car financing. Some lenders may require a few years of history before approving your application for some type of credit or financing.
3. You let past debts in the past
It usually takes about five years for the CPF restrictions to disappear from your credit report – depending on the type of debt, it may be more years. However, people can recover financially relatively quickly. Within a few years it is possible to have a very good credit score (700-799).
On the other hand, some lenders may have rules that prohibit loans to people with internal debts even if they do not appear on your credit report and regardless of your score. So your score may not be worth much if you failed to pay off an old debt, they can refuse any request from you.
Clearly, you may realize that banks do not like to lose money with clients be they good or bad profile, and they will not approve default customers when they come back in the future.
In Brazil and around the world, credit card companies have made rules ever more rigid for these people to be rejected regardless of credit score.
If you do not want to get into trouble with any lender, pay all your debts, including the oldest ones, which you may have forgotten because it does not appear in your history.