The main reason that a person’s credit history begins to become a negative one is payment arrears. By not fulfilling your obligations, financial institutions report you as a bad payer. This is visible in the next credit evaluations that you do, each time you apply for a loan, causing you to be more likely to deny it.
But how can saving be an answer to this?
Basically, because the reason why most people fall behind in their payments is because the budget for the month did not reach. Whether for an emergency or some additional payment that arose and was not planned, the money is not enough, and they begin to be delayed. If this happens and the person has an emergency fund or some amount saved, it would only be a matter of approaching his bank to make use of that money and thus cover the impasse without falling behind in his financial obligations.
However, by not having money saved, the only solution they see is to stop paying and find where to get the money in the shortest possible time, which even leads them to request another loan.
Overindebtedness is another reason why a good track record ceases to be. When you borrow more money than you can afford, you are clearly overindebted. This is done because the money is not enough to cover expenses and they see credit as the only solution. Loans are good when they have a timely and beneficial purpose, but cannot be used to cover all the expenses of the month.
Here again the importance of saving is carved out, since having had an amount X saved, they could resort to that and not look for credits.
But can everyone save?
The answer is yes. Although many doubt it, it is possible to save a certain amount if we pay attention to our consumption habits: what you buy, how often, what activities you do, what you spend money on, etc. If saving is what you propose, no matter how much you earn monthly, you can manage to separate a certain percentage, but to achieve this you must pay attention to your own consumption.
In addition, having a savings account that pays good interest is ideal, because that way you will see how your money grows month by month and even if it is a little bit, it will continue to produce.