How can I read my credit history and how does it affect me?

He credit history it’s built with any credit product that goes from a credit card to a store-bought installment product, a cell phone contract, and even a college loan.

Having a credit report does not mean that the client is poorly paid, on the contrary, he can be credited if he shows up-to-date payments.

A good record shows how responsible and reliable the client is to be subject to future loans, but How to know if we are a reliable customer or not?

To know how reliable you are as a customer, Directorate for Consumer Protection and Defense of Market Competition (Acodeco) He offered some tips on how to read the numbers from history and how it affects your credit score.

The first thing you should know is that they have been read from left to right for the last 24 months. It is ideal to have only one (1) showing that payments are normal or up to date by the 9th, which is the most critical and shows the account is more than 365 days past due.

In this way, the reading starts from code 0 which indicates that the associate did not report data in the specified period, followed by code 1 which indicates normal or that it is up to date; 2 already indicates a delay between 1 and 30 days, doc code 3 undergoes a delay between 31 and 60 days; he code 4 shows a delay of 61 and 90 days.

On that same line, code 5 indicates a delay of 91 and 120 days; he code 6 shows a delay of 121 and 150 days; followed by code 7, which goes from 151 to 180 days; he code 8 shows 181 to 365 days late, and finally, code 9 whose delay exceeds 365 days.

Of the observations you may have in your history, bill against reserve It is one of those that affects the consumer the most, it shows that the debt has become uncollectible, and the company will perceive it as a high-risk client, and most likely the request will be rejected, experts from Akodeco explain.

It is important to know that the data reported in the credit history will prescribe 5 years from the date of the last payment to the corresponding obligation, as established by Law 195 of December 31, 2020, as amended by Law 24 of May 22, 2002.

Eye! Even if the account disappears from the report, this does not release the client from the responsibility of paying the debt.

What to do if you do not agree with what is stated in your credit history?
The first thing would be to give the company an opportunity to clarify the report or correct it; If this does not happen, then you have the option of filing a complaint with Acodec, with appropriate evidence of the case.

Acodeco has registered 81 fines for credit history violations (Act 24 of 2002) so far this year, totaling $200,200.00.

Banks lead Acodeco Appeals Committee with 25 fines totaling up to USD 62,400.00, as the business entities that were punished the most.

Financial companies are in second place with 18 sanctions totaling up to $44,300.00); cooperatives with 8 for $32,500.00) 12 fines to collection agencies for $27,000.00 each; telephone service companies with 10 sanctions totaling $21,000.00, among others.

How to maintain a good credit history?
Make an analysis of your financial situation (income and expenses) and check your ability to pay. Try to keep your payments up to date and make a detailed budget of all expenses to keep track of your finances.

If for random reasons you are late with your payments, try to reorganize and when you get income again, you can make up for it and get out of the situation.