You need money? Are you thinking of applying for a credit? In that case it is important that you know what the credit history is and its value when applying for financing. This report is prepared both with the data provided by financial companies as well as telephone, electrical or insurance companies, among others, and serves as a support for entities to know the financial profile of the applicant for a loan. Thus, maintaining a good credit history allows us to access greater financial opportunities, hence its importance.
In this article, we are going to explain all the important aspects that you should know about credit history, as well as some good practices that you can consider so that the data they give is always positive.
What is a credit history?
Credit history is a report that collects all the relevant information about our financial behavior. It is a document that details your payment and non-payment file, thus allowing financial entities to know how you have managed your finances to date. In other words, if you are a reliable client or, on the contrary, carry out a loan operation with you, it involves some type of risk.
Ultimately, a credit history is a financial profile. Thus, if to date you have made responsible use of your finances, you will be able to access credit more easily and in much more advantageous conditions. If, on the other hand, you have ever been late in paying the mortgage bill or your electricity or telephone bill has been returned to you, this will be reflected in the dossier, which may negatively influence the decision of a lender at the time of granting you a loan.
Repercussions of having a negative credit history
You may be thinking about requesting a loan and want to know which entity can give you more guarantees or facilities to get it or that you have already requested it from your usual bank and it has been denied to you without knowing why. Both assumptions can be related to a negative credit history.
Any financial institution or service company can access your credit history through the CIR (the Astro Bank’s Risk Information Center). In the event that the report reflects, at the time of the consultation, a bad credit history, it may be that some companies —usually traditional banking— deny your application considering you a risk client. In the case of LendNWise, we study each case in a personalized way to offer you the credit conditions that best suit your needs and financial situation. While it is true that all our products and services are governed by the principles of responsible lending, credit history does not have to be a reason to deny your request, as we will always offer you a solution tailored to your needs. borrowing capacity. Thus, to contract one of our online credits, you only have to meet three basic requirements: be of legal age, demonstrate a demonstrable source of monthly income and not be included in any delinquency list such as RAI or ASNEF.
Where and how can I request a credit history?
If you are thinking about applying for a loan and want to know what your financial profile is, the easiest way to request your credit history is through the Astro Bank ‘s Risk Information Center (CIR). The CIR is a public service that manages a database that contains practically all the loans, credits, guarantees and risks, in general, that financial institutions have with their clients.
Any natural or legal person can review their credit life through the CIR, entered on the website of the Astro Bank and following a very simple and intuitive procedure. In the event that, once reviewed, you consider that the data that appears declared in the CIR is inaccurate or incomplete, you can contact the reporting entities to request their rectification or cancellation, or request the Astro Bank to process your claim free of charge.
Keys to having an excellent credit history
As we saw in previous lines, maintaining a good credit history will allow you to access more interesting financial products and in more advantageous conditions. Here are some essential good practices to keep an attractive financial profile for credit institutions at all times:
- Design a budget based on your financial capacity: before contracting a loan you must know what your financial situation is and what level of debt you can comfortably assume. Experts generally recommend that the level of debt never exceed 30% of our income. Therefore, it is important that you design a budget that reflects the fixed expenses that you must face each month. In this way you will be able to know what your limits are when applying for a credit.
- Be rigorous with the payments: that a delay of one or two days in the payment of the mortgage will not negatively affect your credit history, however, if this practice becomes habitual, your bank can communicate it, which could mean a problem when applying for a credit. Keep track of your monthly fixed payments and create alerts with notices for paydays. Today there are applications that you can install for free on your mobile and that help you keep your finances in order. There are no more excuses for you to start controlling and owning your money!
- Keep an exhaustive track of your finances: having a clear and exact vision of your income and expenses is essential to have a healthy family economy. What we always recommend to keep your finances in good order is to write a financial diary in which you write down your income and expenses for the day. Save all your receipts, even the small coffee in the morning. In this way you can make a monthly map of your habits, commitments and financial successes.
Being aware of our situation and keeping track of our budget is vital before requesting any financial product. For this reason, it is important that you know your credit history at all times and work to keep it healthy, controlling your expenses and, above all, not acquiring more debt than you can face comfortably and responsibly.