The credit record is a report or record of all the credits you have requested, either through credit cards or bank loans. Everything is listed: if you have been punctual in your installments or not, date of last payment, type of guarantee and interest.
But why is it so important?
Having an excellent credit record is transcendental for everything, even to be a candidate for a new job, because nowadays some companies are requesting credit history certification from the Credit Risk Information System, SIRC, credit bureau of the Superintendency of Banks , SIB.
Duty is not normal
If you usually have everything you want just by passing the credit card and making the minimum payments, you will definitely feel identified with this story:
This is an extreme and true case lived by a young man who came to have 7 credit cards, of which the minimum payment was higher than what he earned monthly. Even so, he believed that if he paid the minimum fees fully, everything would still be fine, because he thought: “the important thing is to maintain a good credit record.”
The young man in the story got to the point of taking cash from one card to pay for the other. A strategy that, although it gave him a break, also deepened the financial hole in which he found himself.
Generate more income to face that great burden of commitments
He began to strive to generate more income to face that great burden of commitments. However, no matter how much he earned extra, he was always in economic trouble.
To recover his financial health he learned techniques that helped him out of his problems.
Now he recovered his financial balance and rebuilt his credit record with these steps
Make a diagnosis. This helps you to know the exact financial condition in which you are. For that you have to make a complete list of all the commitments you have. It includes all possible information such as: names of the institutions with which you have a commitment to pay, total amounts of each, minimum monthly payment, annual interest rate and contact person.
Action plan to exit payments
This planning should include: list of pending payments ordered from highest to lowest. Then negotiate with the creditors lower monthly installments. Start by canceling the smallest commitment. Upon full settlement add what you paid from that account to the next in size. Do it this way until you pay everything in full.
Meditate on the option to consolidate your commitments by requesting a loan with lower interests and granted to you without so many requirements. This helps you pay in less time and reduce interest.
Unleash your creativity to generate extra profits that help you get out of economic burdens sooner. Get another job or sell things that don’t work for you and that are in good condition.
Every time you reach the goal of canceling a card or loan, ask the company to extend a settlement to serve as proof. Although it has an extra cost it is very important that you have that document.
Take care of your credit record and financial balance by using your credit card as if it were cash, what does this mean? That you can only spend what you have. Never see it as extra money.
Before accepting the membership of a card, check its annual cost. It is also healthy to ask for a detail of the charges charged each month in addition to your consumption as insurance in case of loss or cloning. Pay more than the minimum always. Ideally, you will cancel the total balance as soon as possible so that you do not generate interest.
The smart handling of the card also means never taking it to the top. Ideally when you consume leave 30% of the total credit limit free. Also avoid withdrawing money from the card, because almost all of them charge you a commission for that service and you will end up paying more than what you withdrew.
Try to buy after the cutoff date. So you enjoy almost a month and a half to cancel that consumption.