It is possible to get a loan for a low score, but it is likely that the interest will be higher or that it will take you longer to find banks. Searching for secured credit or payroll-deductible credit is a way to get a loan for a low score more easily. See other tips in this article!
A survey by the Boa Vista credit bureau showed that 91% of Brazilian consumers have been in a situation of denied credit at least once during their financial life. Can you guess the main cause of the negatives? If you thought about the credit score, you’re right. And he probably understands the weight of this factor in the evaluation of banks.
According to the survey by Boa Vista, the credit score represents 43% of the negative ones, even ahead of restrictions on the consumer’s CPF, which comes in second place. The study was carried out with approximately 3,000 Brazilians, who cited the justifications given by banks for not releasing the requested credit.
Is it possible to get a loan with a low score?
The reasons listed in the survey give a good idea of the factors considered in a maturity loan appraisal. This is because companies take several factors into consideration when analyzing whether they will grant credit to a customer. Registration information, income, CPF regularity and… credit score.
As the research suggests, this last expression often seems to be decisive for getting a maturity loan, taking out a loan or having a new card. However, a high score is not synonymous with guaranteed credit, just as a low score does not necessarily mean that it will be impossible to get a loan.
We have already stated that it is possible to obtain a loan with a low score. With some tips listed below, the task becomes easier. However, before showing how to apply for credit in this condition, it is important to understand what a credit score is and how to increase your score.
In this article, you will understand more about it and check out tips for getting a loan for a low score, even when the situation is urgent.
What is credit score?
The credit score is a score based on the consumer’s payment history, functioning as his resume within the financial market. It is used by banks and institutions to analyze loan requests, and can interfere with interest conditions, deadlines and even the release of money.
The score ranges from 0 to 1000 and indicates to financial institutions how likely it is that the person will pay for the credit they apply for. That is, the score shows the applicant’s default risk. The higher the score, the greater the chances that the bank is dealing with a good payer.
How is the credit score calculated?
The grade is awarded by credit protection agencies (also called credit bureau or credit bureau ) such as Boa Vista, SPC and Serasa. During the evaluations, the services of these bodies are consulted by banks, fintechs, finance companies and other companies that work with credit concession.
Each of these bureaus has its own formulas for calculating the score and, therefore, the values may vary in relation to the same CPF. For example: in one agency the consumer may have a score of 530 and in another, 550.
In addition to the different calculation methodology, one of the reasons for having a different score in each bureau is the fact that a debt can be activated in Boa Vista, for example, but not be activated in the Serasa bank. Although each company uses its own method to calculate the score, we know that the result is statistical and that it takes into account personal data and financial history.
Among the factors considered in the calculation are:
- Number of loan requests;
- Transactions in accounts;
- Loans and financing outstanding;
- positive registrationmaturity loan ;
- Participation in companies;
- Frequency in which bills are late;
- Updated personal data;
- Age.