Sometimes the purchases we make are guided solely by our emotions, without thinking rationally if we will have the money to pay them, even if they are months without interest. And I am not saying that credit is bad. In fact, credit cards have great advantages, one of them is to build your credit history. The problem comes when there is no organization to pay before the deadline, so we fall behind in the payment and begin to stop paying our credit little by little.
But how much does the debt affect my credit history?
First, it must be clarified that appearing in the Bureau is not bad. If we have had a credit card, from department stores, automotive or mortgage credit, then we are discharged from a Credit Information Society (SIC), either in the Credit Bureau or in the Credit Life. There we are reported all the credits that we are processing throughout life and you can see if we are good or very bad payers.
Now, if we were bad payers, that brand can stay up to 6 years! in our credit history. It all depends on the amount of our credit. These amounts vary over time. You can review them at any time on the CONDUSEF website or in the Law to Regulate Credit Information Companies. The calculations were made according to the value of the UDI as of March 10, 2019:
- Debts less than or equal to 25 UDIS ($ 156.15 dollars) , are eliminated after one year.
- Debts greater than 25 UDIS ($ 156.15 dollars) and up to 500 UDIS ($ 3,123.02 dollars), are eliminated after two years.
- Debts greater than 500 UDIS ($ 3,123.02 dollars) and up to 1000 UDIS ($ 6,246.05 dollars), are eliminated after four years.
- Debts greater than 1000 UDIS ($ 6,246.05 dollars) , are eliminated after six years as long as: they are less than 400,000 UDIS ($ 2,498,422.80) , the credit is not in judicial process and / or you have not committed any fraud in your credits.
As you can see, with “little money” you can harm your future for the next 6 years. That is why it is important to always take care of your credit history since if you want to request a loan for a car or a house, it will be difficult to get it if you have already been qualified as a bad payer.
Tips to improve your credit history
If you find yourself in the situation that you are only paying the minimum (or not even that: v), here are some tips so you can get rid of those debts that take your sleep away:
Refinance your debt
Most problems are resolved by talking about them and this is no exception. Go talk to your bank and discuss your situation. They have the possibility to reorganize your debt and offer you a payment plan that you can meet.
But if what you want is to save time from having to physically go to the branch and avoid training more than an hour to be treated, I recommend that you refinance your debt with Marcel. The whole process is 100% online and you can complete your application in less than 5 minutes.
Get a cheap loan
It seems imprudent to have to borrow money to pay another loan, but this is not always a bad idea. Imagine for example that you stopped paying for your new cell phone on your credit card. It’s been 2 months and they’ve been charging you 70% in interest (no kidding). However, you could request an immediate loan with an annual rate of 35% and in this way you would be saving half the money in interest.
Be careful, you have to be careful with this double-edged sword, because if you don’t pay the debt totally and decide to spend the money borrowed on something else, you will no longer have a debt but two! And as they say, the broth will be more expensive than meatballs.
Check your credit history
I recommend you check your credit history frequently. It’s free! If you request it once a year. You can complete the procedure directly with Buró in this link. In the same way, they have a free service called “Alert Me”, where they send you an email every month with a summary of the changes that your credit history has had, whether new credits or modification of your data. It is also very useful to monitor if they ever request a loan in your name without your consent.
So there is no excuse to stay idly by watching the bank take your salary every fortnight in interest on your credits. Get down to work and follow these tips immediately if you find yourself in that situation.
Remember that in Marcel we can help you reorganize your debt and improve your credit history through a simple fixed payment plan at a much lower rate than banks.