Serasa launches credit score notifications option in Brazil

Serasa’s Cadastro Positivo indicator has a score that ranges from 0 to 1,000 points which are used by companies when granting credit to consumers. Actions such as paying bills on time generate increases in the customer's credit score; on the other hand, late payments of bills and instalments subtract points from the score. Another new functionality offered to consumers is access to a report with the diagnosis of the possible factors that reflect the change in the index.

Sources at Serasa state that clear communication about the scores helps consumers understand how their actions impact it and help avoid surprises when seeking credit. Cadastro Positivo has helped Brazilians become aware of how their personal history of timely payment of bills and loans can be useful. Until then, the country's financial system operated based on socialisation of losses: the default of a minority of the population generated costs that were shared among the majority in the form of higher interest rates.