Back to Learn
CreditBasic

What is a credit score?

4 min readM1

Your credit score is a number between 150 and 950 that tells banks, finance companies, and fintechs how likely you are to repay your debts on time. In Colombia, the primary reference system is DataCrédito Experian. A high score opens doors: better rates, higher limits, fewer requirements. A low score closes them. Understanding how it works is the first step toward using it to your advantage.

How your score is calculated

DataCrédito does not reveal its exact formula, but the most important factors are: payment history (whether you pay on time or late), debt level (what proportion of your available credit limit you are using), age of your credit history (how long you have been in the system), type of products (cards, loans, CDs), and how often new institutions query your history. Consistent on-time payments for 12 months can raise your score by 50–80 points.

What moves your score up

Always paying before the due date is the highest-impact factor. Keeping your card usage below 30% of your credit limit also helps — if you have a $5,000,000 limit, using less than $1,500,000 is ideal. Diversifying your products (having both an active loan and an active card) and not opening several new products at the same time also contribute positively.

What brings it down

Delinquencies of more than 30 days cause the most severe damage and can stay on your record for up to 4 years. Consistently using 70–80% or more of your available credit limit also hurts. Too many credit inquiries in a short period (when you apply for several products at once) sends a warning signal to lenders. Closing an old card erases positive history, which can also lower your score.

How to check your score for free

You are entitled to one free monthly query at datacredito.com.co. Register with your ID, verify your identity by answering questions about your past financial products, and you can see your current score and details of what is affecting it. You can also check with TransUnion Colombia and CIFIN (from the Banking Association). Crenti consolidates this information and shows you personalized recommendations in one place.

Key takeaways

  • Scores range from 150 to 950 — above 700 already unlocks good terms.
  • Paying on time is the single highest-impact factor.
  • Using less than 30% of your card limit actively improves your score.
  • Delinquencies over 30 days can stay on your record for up to 4 years.
  • You can check your score for free once a month at DataCrédito.
View my credit profile