In these days, having access to good credit is not only necessary but important to improve our quality of life. For this reason, it is important to understand what a credit score and credit history is all about.

When you have a credit, you are asking for a loan and promising to pay back within a specific period of time. The credit score is a statistical method to determine the probability of an individual to repay the loan


Credit bureaus that issue these qualifications have different evaluation systems, based on multiple factors. Some of them may only consider the information in your credit report. The main factors used to calculate your credit score is your payment history, actual debt, duration of the loan, type of credit and the frequency of new credit applications.

Because rating systems are based on different criteria analyzed in different ways, the three main credit bureaus of the United States (Equifax, TransUnion y Experian) may issue different credit scores for an individual, even though the results are based on the same information in the credit report.

The credit score determines the risk to lenders when a credit is given. This could be a bank, business or individual. When you request a credit card, mortgage, and search for employment, purchase a car, rent an apartment or install a telephone line, your credit score is always a factor.


If you have a bad credit score, unless it is very terrible, lenders will still offer the loan but at a significantly higher rate. Eventually, you will end up paying much more than the original amount.

I know it’s difficult to maintain a clean credit history! However, following these tips and taking practical steps can help your score to remain high and not low.

These tips will really help you to manage your credit:  

Keep a record of your expenses

What, how, where and when each expense was made. Keep track of written checks, credit and debit card transactions. Check monthly expenses and collect the data. There are applications to help you like MINT, which allows you to maintain your monthly bills day by day and avoid losing time between papers and tickets.

Do not exceed your credit limit

The available credit is the amount of credit you have left in your credit line or credit card; this is your credit limit minus the pending amount. Always try to keep your expenses below this amount.

Pay your debts

Always pay at least the minimum amount per month. Do not skip payments. To do this effectively, your account must always be organized with due / expiration dates and any other monthly expenses pending. Do not forget payment due dates! You can put an alert in your calendar or subscribe to automatic payments. Then it will be automatically withdrawn from your account in a timely manner.

Have an emergency fund

I know it may seem impossible, but try to keep a safety net of 15% of your available credit in case of emergencies. You may also choose to have an emergency savings fund that will give you a breather if something unexpected happens. This could be job loss or anything that requires extra funds.

Keep in contact with your creditors

Get in touch with your lenders immediately if you fall behind payments or if an emergency crops up and you need to reschedule your payment date. The majority of creditors are willing to provide payment options if you inform them ahead of time about your current situation.

Request credits and / or loans only from safe sources

You may be desperate for relief but getting robbed or scammed on top of your financial problems is much worse! For this reason, only accept credits and loans from trustworthy sources like banks.

I hope this information has been useful! Good luck!