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Understand quickly and easily how your credit score is calculated. And how it can influence the release of loans and credit cards.
Have you ever been in a situation where your loan was not approved without knowing why?
In advance, understanding how the score is calculated is essential to knowing which points need improvement.
However, having a clean record does not always mean that credit will be released.
Therefore, there are several situations that creditor companies evaluate.
Such as: personal data, default rate in the zip code, value of current debts, among others.
But after all, how is the credit score calculated?
Initially, the points count is done by converting the customer's data into numbers. This way, when combined, they result in an average that can be good or bad.
The institution then weighs all the factors, generating a number that can range from 0 to 1000 points. At the same time, based on the average result, it decides whether to approve the credit or not.
In this sense, each piece of information can influence more than others, see this in the following topic.
8 Factors that influence the score
1 – Personal Data
First of all, personal data is the first to be analyzed.
In other words, banks take into account information such as date of birth, address and CPF.
Furthermore, each one has a weight at the time of calculation.
2 – Age
At the beginning of the analysis, the date of birth plays an important role.
Well, generally the younger group of people tend to have uncontrolled consumption habits.
Therefore, it is common for these people to have a lower score.
3 – Region where the consumer lives
Then, another factor that influences the score is the region where the consumer lives.
Since, at the same time the index and default in the CEP is also analyzed.
4 – CPF registration status
Subsequently, financial institutions analyze the CPF.
That is, the amount of overdue debts, electoral issues and legal proceedings in the name are included in the sum.
5 – Payment History
The customer's payment routine is taken into consideration in advance. This way, it is possible to know what the number of times the consumer sought credit on the market.
Therefore, if your CPF has several loan application histories, it shows companies that you do not have a controlled financial life. In this sense, your score tends to drop.
6 – Places where debts were recorded
It is also possible to find out where you got into debt. In fact, During credit analysis, institutions are able to classify whether a certain purchase was made on impulse or not.
7 – Value of outstanding debts
Many outstanding debts result in a low score. Therefore, the higher the amount, the lower the score. credit score number.
8 – Existence of legal actions
Finally, another item that is included in the sum is the existence of legal actions.
For example, the search and seizure of assets in the name due to unnegotiated debts, after several unsuccessful attempts, are verified.
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