Clipping of news on Brazilian Culture, Law and Citizenship
6/13/2017
This article was translated by an automatic translation system, and was therefore not reviewed by people.
The score indicates the chance of you getting loans, finances and bills. See what this note can mean and how to get a good score
By Júlia Lewgoy access_time 12 Jun 2017, 09h37 - Posted on 12 Jun 2017, 05h00 more_horiz
São Paulo - Maybe you do not know, but you have won a great consumer right in recent months. Serasa Experian and Boa Vista SCPC, two of Brazil's leading credit bureaus, have released an online, instant and free consultation to their credit score, a score that indicates the chance of getting loans, financing and bills on the market.
Many companies use the score calculated by credit bureaus to measure the risk of default by providing consumer credit. There are other banks and shops, however, that calculate their own score, with their own methodologies. Score is not the only determining factor for getting credit, but it is an important indicator.
The ability to know and understand your banknote is a major step forward from the point of view of consumer law because it allows you to see where you are wrong and plan your financial life better.
Thus, Serasa and Boa Vista open the way for large banks and retailers that produce their own score systems to do the same - and improve the relationship of transparency with the consumer.
"Access to credit score is a basic right of everyone. The risk scoring system is an indispensable component of consumer society today, but it needs to be transparent and can not function in the dark, "says Rafael Zanatta, a technology researcher at the Brazilian Institute for Consumer Protection (Idec).
To calculate the score, credit bureaus analyze information such as current account payments, history of negative debts, frequency of search for credit in the market, and updated cadastral data. Personal Loan: Remove your debts with rates starting at 2.8% per month with Just Online Sponsored
"Behind a number presented in a simple way, there is a large set of information about the ballasts you left on the market," explains the director of SerasaConsumidor, Fernanda Monnerat.
Both Serasa and Boa Vista SCPC encourage consumers to update their free register, a kind of financial curriculum, that can show everything they have done well in their financial lives. This data can help you get a good grade.
"Positive registration is the easiest way to understand if you are evolving in the marketplace. The more complete the information about you, the better, "explains the Superintendent of Consumer Services of Boa Vista SCPC, Pablo Nemirovsky.
Credit score can not discriminate against consumer
Most banks and large stores in Brazil still do not openly disclose the consumer credit score nor the criteria used to calculate the score.
The problem is that lack of transparency enables companies to use data that they should not form to make their grade - and ultimately deny credit from hasty and prejudiced conclusions about you.
Data such as address, education level, skin color, sexual orientation and political opinion can not be taken into account when a company decides to give or deny credit.
"Algorithms carry the same preconceptions as men and exclude the less favored classes from access to credit. We must be careful to create systems that do not increase the discrimination that already occurs in society, "says Mario Viola, a researcher at the Institute of Technology and Society (ITS) in Rio de Janeiro and coordinator of a research that analyzes the use of personal data By credit bureaus.
For the researcher, it will only be possible to have a more horizontal treatment of consumers when there is a law of protection of personal data. There are currently three lawsuits in the Senate dealing with the matter.
Also, it is very important for consumers to check their credit score, use available channels, and question their credit score. Anyone who has access to credit that is denied without justification can report the company to the consumer.gov.br website or to the Procon of their city.
All companies, including credit bureaus, have the duty to inform the consumer about the databases consulted to develop the credit score methodology. "It is mandatory to explain how the score was calculated and which data weighed more," says Zanatta, from Idec.
How to check your credit score
To check your credit score on Boa Vista SCPC, you must register on the Positive Consumer portal, where you can also check for past due debts on your behalf. The score ranges from 0 to 1,000. The higher, the lower the risk of you being defaulted and getting credit in the market.
To check your score on Serasa, go to the Serasa Score website. The score also ranges from 0 to 1,000. The score is dynamic and evaluated at the time of the consultation, considering the information available in the Serasa database.
The score can change for the better if the consumer cleans the name, pay their bills on time, maintains up-to-date cadastral data and opens the positive register.
The main causes for having a low score
After two months of Serasa Score on the air, many consumers scoring under 300, with high default risk, came to Serasa by letter, agencies and social networks to better understand their score. Based on this sample, Serasa did a survey and concluded that having the negative name is the main reason for having a low score.
Most were delinquent because they lent their friends or relatives the name to get credit, and did not even know they were being denied. Other consumers were left with a low score due to divorce, unemployment, accident or illness. There are also those who forgot the debt because they changed their address and did not change the registration data with the lender.
Some consumers had their name recently removed from the delinquent register, but the score had not yet been updated. Others had low scores because they were not in the habit of using credit and had no data available because they did not open a positive register.
There are also those who get low marks because they had their personal documents stolen and were a victim of identity fraud.
Source: Exam
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This article was translated by an automatic translation system, and was therefore not reviewed by people.