Access to the financial system through loans, savings accounts or credit products is essential for citizens, as it allows them to expand their business, study or buy a home, among others. However, many people fall into difficult economic situations, which prevent them from meeting their obligations and which result, after a while, in negative reports in risk centers.

(This is how the reports work in credit centers such as Datacrédito).

The people reported may end up outside the formal financial system, with the inability to acquire loans or credits. This scenario leads many to unsuccessfully request a second chance, and to resort to dangerous alternatives such as ‘drop by drop’.

Hence, financial education, planning and savings are important to keep a good record and, above all, avoid resorting to dangerous alternatives such as ‘drop by drop’. For this reason, the Financial Doctor of Mibanco, a company of the Credicorp Group, brings you 4 tips to avoid being reported negatively in risk centers and what to do in case of being reported.

1

Take care of your credit history: Pay your bills on time, including the cell phone, and schedule the fulfillment of your outstanding debts. This will not only help improve your credit score, with which you can access more products, but it will also allow you to obtain better loan terms in the future.

2

Do not apply for more credit than you can afford: Financial planning is essential to take care of your history with the power plants and, therefore, with the banks. Make sure the loan amounts you apply for fit your income and expenses, and create a plan to repay them. Remember that a suitable range to borrow is between 35% or 40% of your total income per month.

Another decisive point when taking on a debt is to know the interest rate that you will pay. The credits bring interest and it is relevant to know if the rate is fixed or if it can vary over time.

3

Regularly review your credit report: Centrals such as Datacrédito, Transunion and Procrédito have portals where they can consult their report, identify if they have a report and, incidentally, detect possible errors or inaccuracies. Don’t forget that identifying alerts and acting on time can make a difference in your credit history.

4

Think twice before co-signing: Although many people support friends or family out of solidarity, it is important to have detailed information about the person who took out the credit: can you ensure that they do not have delinquent reports? Do you have a workable plan to repay the loan? In case I can’t afford it, could you bear the cost? Being a co-debtor entails great responsibility and, according to Datacrédito, it is one of the reasons why negative reports end up.

(Platform lends money to people with a report in risk centers).

Even so, despite having healthy finances and recognizing the importance of paying on time, many citizens ended up informed in credit centers. If this is your case, immediately contact the entity that reported it and verify the accuracy of the information. Remember that, if there are errors, you can request a correction. If the report is accurate, create a payment plan that allows you to meet your obligations as soon as possible.

Finally, if you don’t know how to get started, remember that there is always the option of seeking professional advice; Entities like Mibanco have experts dedicated to guiding you to have good financial health, without getting too much debt and allowing you to maintain your ability to pay.

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