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But what is the score for? First of all, the score is an indicator of the consumer's financial profile, widely used by companies and banks. After all, it is the parameter that makes companies decide what amount of credit limit can be released without losses for both parties.
Therefore, the score varies between 0 and 1000 and through it, institutions can have a basis on the probability that the customer will delay paying their bills or not.
In that regard, the closer to 1000 points, the better the person's financial profile is. This way, the chances of having a loan or approved credit cards are quite high.
However, The lower the sum, the greater the chances that the consumer will not honor the payment of debts.. For this reason, the credit application is denied most of the time.
What is a credit score for?
First of all, the credit score is used to indicate the chances that the customer has of being a good payer, or not. Therefore, each sum indicates a risk of default:
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- up to 300 points: high risk;
- 300 to 700 points: medium risk;
- above 700 points: low risk.
In advance, the consultation is carried out with the aim of obtaining more information when analyzing the risk of default.
Therefore, companies that hire consultation services through Serasa have access to the customer's score.
Thus, the score is analyzed whenever you buy a product in installments, such as electronics, cell phone plans, credit cards, clothes, among others.
Which companies check credit scores?
Above all, the analysis made on the score indicates that you are looking to make purchases in installments or on credit, right? See below which companies always make this necessary inquiry:
- Internet and telephone operators;
- Car insurance company;
- Stores;
- Construction companies;
- Real estate;
- Banks and Financial Institutions.
Therefore, this means that even when you rent a house through a real estate agency, your score remains on the radar.
In other words, it is of the utmost importance to always keep your score in the green!
What can increase the score?
After learning what the credit score is for, and which companies perform the consultation for this procedure, now find out what factors can increase your score!
Let's go! Primarily, to improve the score to increase the score, always pay your bills on time. Because late payment of debts significantly reduces your credit score.
On the other hand, Paying off debts, loans and financing in advance increases your score quickly. As well as, it improves your financial resume in positive registration!
