To start, your credit score is a number that is made up of three digits. Three powerful digits! Which many companies use to know how our “financial health” is. A high number represents that you are in good financial health and a low number may represent the opposite. It is important that you know that this number is not fixed, it can improve or deteriorate with the use and management of credit over time.

No one knows exactly what method is used to calculate the “credit score”. Of course, according to the leading company in analytics solutions for organizations, FICO, the range is between 300 and 850 points. It is also stated that very few people have less than 500 and more than 800. This score is not based on income, age, race, gender, age or religion. It is based on past use of credit history, which is maintained at the credit reporting agencies: Experian, Equifax and TransUnion.

_{What is the importance of credit score?}

This number is crucial in all the financial decisions you are going to make, especially the purchase of a home, with a mortgage. It represents a letter of introduction to the bank where you will make the loan.

Three fundamental actions to improve credit:

• Don't have excess cards – If you have too many cards, it is recommended that you limit yourself to three. Try to keep the debt at 30% of each person's credit limit.
• Pay on the established date – Experts advise scheduling the payment automatically to avoid missing the payment date. If you pay late, your credit will be affected. There are tools that allow you to create alerts for payments and even automate them.
• Check your credit – We recommend that you check your credit at least twice a year and 6 months before making a major purchase. This may give you time to improve it if you need to or wait a little longer before making that decision.

^{What do you gain with a good credit score?}

You win a lot! It is proven that the best credit offers come to people with a credit score of 720 or more. Plus, having a good score will help you get a lower interest rate when you apply for a loan or credit card.

Finally, do not forget that applying for various credit accounts in short periods of time can have negative consequences for your “scoring”. Instead of responding affirmatively to each credit offer, think and analyze the financial objective that drives you to do so, and in this way you contribute to having an excellent cover letter.