Maintaining positive credit references can open doors for you to grow, either through loans for a postgraduate abroad, to grow your business or a mortgage. If these milestones in life appear in your dreams, the investment is great, but the benefits are greater and it is worth investing with a loan in yourself. Before applying for this large loan, go forming a strategy so that you can realize that dream and not stumble due to lack of knowledge of how to handle a loan. Maintains a clean record with the Panamanian Credit Association (APC), the bureau that records the payment status of several entities. This will give you greater opportunities in the future.
The logic behind the loan and how to organize
Below, four key tips, directly from Easy Finance to maintain a good credit that can work as a positive reference for banks:
1. Do not incur expenses that you can not pay later.
Establish as accurately as possible the amount you need, whether to invest, spend, remodel, or any other use. And take note of this important clue: even if they lend you $ 10,000 to cover your school expenses, a remodel, or a credit card, banks and lenders penalize you if you are “full”. That is, if you barely cover what you earn, cover that loan .
In addition, the fact of using the entire amount, especially a credit card, indicates that you depend too much on that line of credit, which does not help you improve your credit score. You do not have to spend the entire amount they lend you. It only borrows in amounts where you can live comfortably with the payments every month and do not spend every penny they offer you.
Even with personal or business loans in particular you have more control and you can ask for the loan amount to go down . On the other hand, the TDCs tend to want to monopolize your entire credit capacity, in other words, if you have shown that you are a good customer, sometimes the credit limit is raised. Apparently, they are doing you a “favor”, and they congratulate you. But in itself what happens is that they claim that you can not ask for a TDC from the competition because that increase already monopolizes that recommended proportion of debt vs. income. They may refuse to lower the credit limit . In this case, you have the right to close the account with them, which sometimes
2. Investigate and learn thoroughly about the loan conditions, especially with regard to the interest rate that will later be charged to your card.
Check and detect the “hidden costs”, that is, all the commissions and extras that some institutions charge without notifying their clients. The daily phrase is “small print”, which can be harmful to your credit if you fail in a detail of that little letter. For example, even if you believe that you have managed the transaction to pay your bill, if a holiday falls or after a certain time, sometimes the payment is not recorded until later. This can make the account in arrears for a few hours or days and sometimes with that nothing else can make you jump the interest rate to double or triple the original agreed.
Even paying your bill in advance can give you an upset. Something unexpected is the penalty with which some financial institutions will fine you for paying your amount in advance. This usually happens with car loans because they want to have the interest they are charging you. By canceling your debt in advance, you take away the additional money with whom they counted.
3. Do an analysis and plan when and how you will return the borrowed money. Put structure to your budget.
It’s easier than you imagine. The first step is to sit at the desk. Choose realistic dates and goals for amounts you want to accumulate for those dates. Take out uncontrolled shopping accounts that you do. Sometimes looking at them and how it impacts you helps control you. Remember that the dream of a good future is bigger than an expensive caprice today.
Commit yourself to the dates and budget that you have designed during a certain months. This will help you keep up with payments and create that good track record. Test your budget and dates for a few months, review them and adjust them if necessary.
4. Fix your credit history
If for any reason you have not been able to fulfill an obligation on time, come to your bank or the institution that has lent you and ask for a statement of account up to date. Ask to arrange the payment, even in partial payments or installments. Do not hesitate, many people face eventualities and financial institutions are used to late payments. Addressing the issue with the bank or financial institution shows them two things: 1. your intention to pay, 2. the payment itself of the debt by issuing a cancellation report to the APC your history will be cleaned up again.