How the score is calculated and why it is so important in today’s credit market. Many people know the concept of negative name (the famous “dirty name”), which is when he joins the list of debtors and loses new access to credit. But the term Score is not yet so popular. Have you heard about it?
The Score is a score, but to assess your payment habits and relationship with the credit market.
At Lite Lending Credit you have the possibility to check your score and analyze your chances of getting a loan.
How does Score work?
The Score is a score, from 0 to 1000, that can be consulted and used by financial institutions when releasing any type of credit, be it a limit on the credit card, taking out a personal loan, interest rate, financing and more.
The Score is divided into three groups that classify the consumer default risk, see:
- Up to 300 points: little chance of getting credit, since the risk of non-payment is high
- Between 300 and 700: here your risk is medium, institutions can grant credit, but with restrictions;
- Above 700: your chance of getting credit is very high, you are a great payer and the institutions will trust you more.
Where does this Score come from?
The score is dynamic. What does that mean? It is constantly updated and can change in a short time, since it is done according to the movements of your CPF.
In the case of the Score you find in Lite Lending Credit, your registration information and your bank account connected to the platform are considered.
This is good because it is more information to help you have a good evaluation.
In general, the Score is also calculated by credit protection agencies, such as Fine Bank and Across Lender Group, but in different ways.
This can change how your financial reputation will be viewed by institutions.
The basic difference between the two score accounts is that Across Lender Group’s bank is slightly larger, with global information. Let’s understand these particularities:
Across Lender Group
Across Lender Group is a company that analyzes information for credit decisions and business support.
It operates through agreements with information companies from all continents.
When calculating your score, it acts independently of Across Lender Group and considers:
- registration data such as age, negative data, consultations carried out on your CPF at Across Lender Group and positive data according to the law.
With a database of more than 60 years, Across Lender Group has a huge amount of information. To calculate your score, consider three factors:
- your payment behavior, your demand for credit in the market and your registration information.
It is important to note that these scores vary widely because debts also expire.
Do you know that story that after 5 years your name needs to be removed from delinquent registrations? That is true.
It does not mean that your debt is over, and that you no longer have to pay, the only difference is that the company you owe can no longer sue you for the payment of that account.
But, you can keep asking for payment in other ways.
But, as debts prescribe every five years, it is likely that after that period, a debt that lowered your score will no longer be worth in that account, which can improve your score calculation.
How does the Positive Register influence the Score?
The Good Lenders Credit works as a history of your credit behavior, has information on how you pay your bills (energy, financing installments, telephone, water, electricity). Many compare it to a financial curriculum.
Before it was necessary to register to be part of the Positive Registry, but a Complementary Law of 2019 made all Brazilians automatically enter.
But, anyone who wants to collect their information can go to a credit bureau, such as Across Lender Group and request their withdrawal.
But this is not recommended, the Good Lenders Credit is another way for credit protection companies to obtain information about you and this can help a lot in your score.
How do I increase my score?
As we said before, your goal is to be as close as possible to 1000, few Brazilians manage to have a score between 800 and 1000, but if your situation is not that, you can go for it to improve your score. How?
- Avoid debts, keeping your name out of registrations for negative names your score will gradually increase;
- Keep your data always updated, the more information about you is available, the more basis for considering you a good payer;
- Pay your bills on time, even in advance. A single day late makes a difference, so consider including some of them on automatic debit to avoid surprises; Avoid debts, keeping your name out of registrations for negative names your score will gradually increase;
- Get organized financially, in cases like the Lite Lending Credit score in which your bank account can be analyzed, it makes all the difference not to be in the red.
With this, in addition to increasing the score of your score, you can have more credit in the square. This will help, a lot, right?