Tips to increase your credit score: check out the main ones

Learn practical tips to improve your credit score and unlock better financial opportunities

If you’ve ever tried to finance a car, rent an apartment or even take out a credit card, you’ve probably heard of the infamous credit score. This number, also known as a score, is like a thermometer of your financial reliability.

But if your score isn’t quite up to scratch, don’t worry – there are a few things you can do to improve your record and open doors to better opportunities. Want to know what they are? Then read on to the end!

What is a credit score?

First of all, it’s important to understand what a credit score is. Basically, it’s a score that goes from 0 to 1,000, indicating how likely you are to pay your debts on time.

The higher the score, the more confidence financial institutions have in you. This score is calculated based on factors such as:

• Payment history;
• Level of indebtedness;
• Frequency of queries to your CPF;
• Financial relationship with companies and banks.

Now that you know the basics, let’s get down to business: how to boost this score.

Understand credit score boosting tips

1. Pay your bills on time

It may seem obvious, but many people underestimate the impact of delaying a bill. Making payments on time is one of the main factors in boosting your score. If you have trouble remembering the due dates, use tools such as bank apps or cell phone alarms.

Another option is to put your bills on automatic debit, so you don’t run the risk of forgetting.

2. Negotiate and settle overdue debts

If you have outstanding debts, it’s time to put your house in order. Get in touch with your creditors and negotiate terms that suit you.

Once these debts have been settled, your name will be removed from default registers such as Serasa and SPC, which will have a direct impact on your score.

3. Maintain a good relationship with the market

Having a history of healthy relationships with banks and businesses also helps to improve your score.

This means having active accounts, such as a credit card or current account, and using them conscientiously. Paying bills on time and avoiding overspending shows that you know how to manage your finances.

4. Don’t overcommit your income

One of the factors that influences your score is the level of debt in relation to your income. If you commit a very large portion of your earnings to debt, this may indicate a greater risk to creditors.

Try to keep a lid on your budget and avoid making financial commitments that you’re not sure you can meet. This way, you can increase your credit score in a simple way.

5. Beware of excessive inquiries into your CPF

Every time you apply for credit, the company checks your CPF. Too many queries in a short period of time can lower your score, as they give the impression that you are in financial difficulties.

So, before applying for a loan or card, make sure you assess the need so that you don’t use up your score and limit your credit rating.

6. Update your registration details

Keeping your personal information up to date with credit bureaus is essential. Incomplete or outdated registrations can damage your score. Make sure your address, telephone number and other information is correct.

7. Use your credit card wisely

Having a credit card can help build a good financial history, but only if you use it responsibly. Always pay your bill in full, avoid installments and don’t exceed your limit. A good use of the card shows that you know how to handle credit.

8. Join the Positive Register

The Positive Registry is a tool that takes into account not only your debts, but also the payments you make on time, such as water, electricity and telephone bills.

Therefore, signing up for the Positive Registry can be a quick way to improve your score, as it shows that you are a good payer.

9. Be patient

Finally, remember that increasing your credit score is not something that happens overnight. The process takes time, organization and discipline. Small changes in your financial behavior can make a big difference in the long run.

Improving your credit score may seem like a challenge, but with these tips, you already have a good starting point. Remember: taking good care of your finances isn’t just about getting easier credit, it’s also about ensuring peace of mind for your future. Start today and reap the rewards of your good choices!

Written by

Juliana Raquel