Are you planning to apply for a loan from a financial institution? If you are in the credit bureau, surely you have heard about the credit scoreThis time we will tell you what it is, what it is for and how many you should have to make it a good score.

Credit Bureau: What is the credit score and what is it for?

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What is the credit score and what is it for?

The credit score It is the score of your behavior before the Credit Bureau, and financial companies are based on this score to know if you are a candidate for credits, loans or any other type of financial service.

The Credit Bureau considers «good behavior» when you pay on time and in good shape when contracting a loan. However, this is not the only thing you need to get a good credit score.

How many points should a good credit score be?

According to a website specialized in finance, the score that you must generate before the Credit Bureau so that you have a good credit score, is 760 points. Reaching these points is possible within a span of more than a year. But you must behave well with your credits or loans.

The objective is to verify that in the course of at least 12 months, you comply with your financial commitments established in the contract, this shows the financial institution that it does not run greater risks when granting you financing.

Likewise, there is not only one rating, but in total there are four categories, which order the behavior of each person before the Credit Bureau.

  • Bad: Ranging from 456 to 550 points, it indicates to financial institutions that you have overdue debts and possibly they will decline your request.
  • Regular: It is from 551 and up to 630 points shows that you have had delays in some financing, which can complicate some loan applications.
  • Good: This is from 631 to 680 points, and maintaining it is simple, you just have to continue to be fulfilled with each payment in a timely manner, in addition to not requesting financing at all times. The latter so that your rating improves and goes to the last category.
  • Excellent: Here it is counted from 681 and you can reach the maximum of 760 points, this is the best qualification of credit score, the chances of being approved for a credit or loan are very high. seek to use your credit in favor.

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What is the credit score and what is it for?