Serasa launches credit score notifications option in Brazil

Tuesday 18 January 2022 14:02 CET | News

Brazil-based fintech Serasa has launched an automatic notification service warning consumers of 15 points in credit score changes up or down.

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.

Cadastro Positivo has changed this as each consumer is responsible for their own financial and banking history through their credit score, company officials have stated. Each risk analysis bureau, in addition to banks and fintechs, has its own methodology and score for customers. Higher scores translate into lower interest rates when taking out credit.

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Keywords: credit scoring, fintech, product launch, lending, online banking
Categories: Banking & Fintech
Countries: Brazil
This article is part of category

Banking & Fintech

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