Credit history: what is it and how to apply?

You need money? Are you thinking of applying for a loan? In that case it is important that you know what the credit history is and its value when requesting financing. This report is prepared

You need money? Are you thinking of applying for a loan? In that case it is important that you know what the credit history is and its value when requesting financing. This report is prepared both with the data provided by the financial companies and the telephone, electrical or insurance companies, among others, and serves as support for the entities to know the financial profile of the loan applicant. 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 provide is always positive.


What is a credit history?

credit line for individuals?

Credit history is a report that collects all relevant information about our financial behavior. It is a document that details your payment and non-payment file, allowing financial institutions to know how you have managed your finances to date. That is to say, if you are a reliable customer or, on the contrary, carrying out a loan operation with you carry some type of risk.

In short, a credit history is a financial profile. Thus, if you have made responsible use of your finances to date, 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 the electricity bill or telephone has been returned to you, this will be reflected in the dossier, which can negatively influence the decision of a lender at the time of granting you a loan.


Impact of having a negative credit history

credit history

You may be thinking of asking for 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 without knowing why. Both assumptions may be related to a negative credit history.

If it is the case that the report reflects, at the time of the consultation, a bad credit history, it may be that some companies – normally, traditional banks – deny your request when you consider yourself a risky customer. In the case of Fine Bank, 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 (responsible lending English), the credit history does not have to be a reason to deny your request, since we will always offer you a solution adapted to your borrowing capacity Thus, to contract one of our online credits,


Where and how can I request a credit history?

credit history

If you are thinking of applying for a loan and want to know what your financial profile is, the easiest way to request your credit history is through the Risk Information Center (CIR) of the Agree Bank. The CIR is a public service that manages a database that includes, 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 Agree Bank and following a very simple and intuitive procedure. In the event that, once reviewed, you consider that the data that are declared in the CIR are inaccurate or incomplete, you can contact the reporting entities to request its rectification or cancellation, or request the Agree Bank to process your claim for free.


Keys to having an excellent credit history

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 at all times an attractive financial profile for credit institutions:

  • Design a budget based on your financial capacity: before hiring a loan you should know what your economic situation is and what level of debt you can comfortably assume. In general, experts recommend that the level of debt never exceed 30% of our income. Thus, it is important that you design a budget in which you reflect the fixed expenses that you must face each month. In this way you can know what your limits are when applying for a loan.
  • Be rigorous with the payments: that you delay one or two days in the payment of the mortgage will not adversely affect your credit history, however, if this practice becomes habitual, your bank can communicate it, which could mean a problem when requesting a loan . Keep track of your fixed monthly payments and create alarms with notices for pay days. Today there are applications that you can install for free on your mobile and that help you keep your finances organized. There are no more excuses for you to start controlling and owning your money!
  • Keep track of your finances: having a clear and accurate view of your income and expenses is essential to have a healthy family economy. What we always recommend to keep your finances well organized is to write a financial diary in which you write down your daily income and expenses. Save all receipts, even those of the small morning coffee. 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.