In a recent interview on El Campanazo, Juan Santos, financial expert and certified real estate agent, shared his best tips for improving and maintaining a good credit score. As Juan explained, a good credit history is essential to obtain loans with low interest rates, access credit cards with benefits and ensure better financial stability.
What is a Good Credit Score?
Juan Santos detailed the credit score ranges in the US:
• 300-579: Very low; It is considered a financial “heart attack.”
• 580-669: Risk range, where interest rates are highest.
• 670-739: Good score that allows for better loan options.
• 740-799: Very good; Lenders look for clients in this range.
• 800-850: Excellent, reached by only 1% of the US population.
The Importance of Maintaining Good Credit
Santos emphasized that a good credit score not only makes it easier to access loans and credit cards, but also allows you to save on insurance and other financial services. “A good credit score opens doors in all financial aspects of life,” he noted.
Tips to Improve and Maintain your Credit
- Pay on Time: Avoid late payments so as not to negatively affect your credit history.
- Keep Credit Usage Low: Do not exceed 30% of the limit on your credit cards so as not to affect your score.
- Review Your Credit Regularly: Juan recommends obtaining an annual report from each of the credit agencies (Experian, TransUnion and Equifax) to review errors and possible fraud.
- Know the Cut-Off and Expiration Dates: Santos explained that it is ideal to make the payment around the closing date of the cycle to have effective control of the balance.
How Do Credit Cards Influence Your Score?
Juan debunked the myth that using a credit card automatically improves credit. “It is essential to be up to date and not exceed 30% of the card’s capacity,” he stated. Additionally, he suggested that the best time to make large purchases is at the beginning of the card cycle to make the most of the payment period.
How to Get a Free Credit Report?
Each year, the credit bureaus offer a free report to each consumer. “It is important to review the report and detect any errors or suspicious activity,” Santos advised.
To obtain your credit report, visit the website AnnualCreditReport.com or consult an expert like Juan Santos for personalized guidance.
Maintaining a good credit score is key to achieving financial stability and taking advantage of better opportunities in the market. Follow these tips from Juan Santos to improve your credit history and achieve your financial goals.
