How to Increase Your Credit Quota: Tips and Advice from Experts

Bogotá — Having access to credit is important and can be very useful to meet personal and work goals, however, you may face several obstacles in the process. Between these: that the amount they can lend you is too little for what you need.

In technical words, That amount that banks enable for you to use is known as the quotaeither in credit cards or other types of loans.

If you want to buy a car, a house or apply for any other type of credit, but the amount they are offering you is too low for your needs, Bloomberg Línea consulted experts to find out how to improve that quota, so that the bank lends more.

Tips to improve your credit score

According to Juan Pablo Cifuentes, CFP personal finance and investment advisor at Skandia, These are some recommendations that could be useful to improve the chances of obtaining better places in credit cards or loans in banking entities:

• Be aware of making payments on time, be it from your credit cards, loans or any other financial obligation. This will help improve your credit score. What’s more, if you can make extra installments or make loan or credit card payments before the established date, it’s much better.
• It is not advisable to use all the quota of credit cards, this can generate a perception of having too many debts. Try to keep debt low and use your cards only for necessary purchases.
• Demonstrate stable income it could help to obtain better conditions in the loans; It is important that banks see a support for the debt.
• Try to reduce your debts before applying for a new loan. By having many debts, banks could consider you as a risk and reduce the chances of having the loan you need.
• If you have several unused credit cards, cancel them; since the approved quotas that these have reduce the capacity to improve the loan that you are requesting.

Other practical tips

Don’t forget that falling behind in utility payments and issues such as the cell phone bill, are breaches that undermine the credibility of your credit historyrecalled Ana Vera, chief economist at IN ON Capital.

It is also key to use credit cards responsibly, ideally at a fee and paying obligations on time. “In general It is not about earning more, but also that it is evident in your credit history that you honor your obligations on time no matter how big or small they are”, added the expert.

To give a specific example, Vera said that in the case of housing loans for families, sometimes it is a good idea to marry the couple or be under the figure of free union, “since sometimes household level it is easier to count the income of family members when they are legally united and supported by the income of more than one to fulfill the obligation.”

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