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How to improve your credit score to qualify for a loan: steps and timing - La Nacion Propiedades
Source:
www.lanacion.com.ar
November 19, 2025
Entities use it to determine the likelihood that the debtor will pay or not.
By Candela Contreras
A credit score is a record of a person's financial information.Towfiqu barbhuiya / Unsplash
It's not your profession, your income, or the money in your bank account that can prevent you from accessing credit . A simple three-digit number can open or close the door to a person's financial future: your credit score . But what does this mean?
A credit score is a record of a person's financial information ; it's a kind of rating that financial institutions use when deciding whether or not to grant a loan, such as a mortgage, or any other financial product. "What it does is indicate the probability that a person being evaluated will repay their debts ," explains Pablo Blanco, CFO of Alprestamo.
To clarify, Blanco explains that it refers to a statistical analysis , based on a series of variables, which yields a number from 1 to 999: the higher the number, the greater the probability of timely payment. The financial institution decides the minimum credit score required to receive specific assistance . "It's not linear; each institution decides how to use it," he states.
From the other side of the counter, Gabriel García Mosquera, general manager of Equifax, the company behind Veraz, explains that the calculation is based on five pillars :
Its objective is to anticipate the probability of compliance within the next 12 months. “ It doesn't measure assets, but rather conduct ,” explains García Mosquera.
In practice, this report is how banks and companies evaluate each applicant before granting a loan or offering a new line of credit. But it also serves as a mirror: it helps each person understand how the system views them before considering applying for credit .
Credit scoring is the way banks and companies evaluate each applicant before granting a loan.Inna Kot - Shutterstock
Blanco delves into another silent but crucial aspect: the "no hit." This is the limbo for those without a credit history. It's not inherently bad, but it is a problem. Without prior information, lenders cannot assess the risk. The solution? Start building a credit history with simple products, such as a low-limit credit card . Not to accumulate debt, but to demonstrate payment behavior.
When analyzing what affects the credit score, Blanco mentions two extremes that deduct points: having no debt and having too much . The system penalizes both a complete lack of credit and over-indebtedness. He also warns about another very common mistake: structuring debt poorly, regardless of the amount . “In Argentina, the level of indebtedness is low—it doesn't reach 9%—but the monthly payment requirement is high because there are no long-term loans. This pushes many people to make bad decisions,” he explains.
Regarding the timeframe for improving the credit score, both specialists agree: it depends on the previous damage. If the score is low due to prolonged delinquency, the recovery is slow and gradual. If the reason is a lack of credit history, the improvement is usually faster.
Banks, for their part, adjust their criteria whenever the economic climate becomes more uncertain. They raise the minimum requirements for sensitive loans—such as mortgages—and exclude anyone who cannot demonstrate solvency and stability. Credit scoring is not the only filter, but it is a key component of this comprehensive evaluation .
She explains that for those starting from scratch , the steps are straightforward: open basic accounts, pay on time, avoid debt spikes, and monitor your credit history. " Building a good credit profile doesn't require magic, but it does require patience and a methodical approach . "
Therefore, in a system where banks are increasingly refining their policies, taking care of the scoring becomes a discipline as relevant as any financial decision .
www.buysellba.com
Source:
Cómo mejorar tu scoring para calificar a un crédito: pasos y tiempos
Las entidades lo utilizan para saber qué probabilidad hay de que el deudor le pague o no.
www.lanacion.com.ar
November 19, 2025
Entities use it to determine the likelihood that the debtor will pay or not.
By Candela Contreras
A credit score is a record of a person's financial information.Towfiqu barbhuiya / Unsplash
It's not your profession, your income, or the money in your bank account that can prevent you from accessing credit . A simple three-digit number can open or close the door to a person's financial future: your credit score . But what does this mean?
A credit score is a record of a person's financial information ; it's a kind of rating that financial institutions use when deciding whether or not to grant a loan, such as a mortgage, or any other financial product. "What it does is indicate the probability that a person being evaluated will repay their debts ," explains Pablo Blanco, CFO of Alprestamo.
To clarify, Blanco explains that it refers to a statistical analysis , based on a series of variables, which yields a number from 1 to 999: the higher the number, the greater the probability of timely payment. The financial institution decides the minimum credit score required to receive specific assistance . "It's not linear; each institution decides how to use it," he states.
From the other side of the counter, Gabriel García Mosquera, general manager of Equifax, the company behind Veraz, explains that the calculation is based on five pillars :
- Payment compliance
- Credit history
- Indebtedness
- Participation in financial products
- Recent behavior
Its objective is to anticipate the probability of compliance within the next 12 months. “ It doesn't measure assets, but rather conduct ,” explains García Mosquera.
In practice, this report is how banks and companies evaluate each applicant before granting a loan or offering a new line of credit. But it also serves as a mirror: it helps each person understand how the system views them before considering applying for credit .
Credit scoring is the way banks and companies evaluate each applicant before granting a loan.Inna Kot - Shutterstock
How to improve your scoring?
The Equifax manager sums it up with simple logic: pay on time , avoid late payments , maintain active financial relationships , and keep your debt level reasonable . "Consistency is key," he says. Added to this is a habit few have: periodically reviewing your own credit report to detect errors, omissions, or debts you thought were closed.Blanco delves into another silent but crucial aspect: the "no hit." This is the limbo for those without a credit history. It's not inherently bad, but it is a problem. Without prior information, lenders cannot assess the risk. The solution? Start building a credit history with simple products, such as a low-limit credit card . Not to accumulate debt, but to demonstrate payment behavior.
When analyzing what affects the credit score, Blanco mentions two extremes that deduct points: having no debt and having too much . The system penalizes both a complete lack of credit and over-indebtedness. He also warns about another very common mistake: structuring debt poorly, regardless of the amount . “In Argentina, the level of indebtedness is low—it doesn't reach 9%—but the monthly payment requirement is high because there are no long-term loans. This pushes many people to make bad decisions,” he explains.
Regarding the timeframe for improving the credit score, both specialists agree: it depends on the previous damage. If the score is low due to prolonged delinquency, the recovery is slow and gradual. If the reason is a lack of credit history, the improvement is usually faster.
Banks, for their part, adjust their criteria whenever the economic climate becomes more uncertain. They raise the minimum requirements for sensitive loans—such as mortgages—and exclude anyone who cannot demonstrate solvency and stability. Credit scoring is not the only filter, but it is a key component of this comprehensive evaluation .
What are the advantages of having a good score?
As García Mosquera explains: “ A good score opens doors ,” so among the benefits are:- Access to better credit conditions (lower rates and higher amounts).
- Faster digital approvals.
- Greater access to financial products such as cards, loans, accounts or financing for housing or businesses.
- Better alternatives when renegotiating debts.
She explains that for those starting from scratch , the steps are straightforward: open basic accounts, pay on time, avoid debt spikes, and monitor your credit history. " Building a good credit profile doesn't require magic, but it does require patience and a methodical approach . "
Therefore, in a system where banks are increasingly refining their policies, taking care of the scoring becomes a discipline as relevant as any financial decision .
www.buysellba.com
