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This month, consultations on the positive register were released, a record that takes into account the payment of bills on time to find out if the client is a good payer, including a score. This is a measure that can be used by financial institutions to facilitate the release of credit.

For the time being, however, not all payment information is taken into account. Those who use a credit card or make purchases in installments, and pay these bills on time, may have a better score than consumers who prefer to pay cash.

Less credit, lower score

Cash payments, in cash or by debit card, are not part of the information in the positive register and are therefore not used to compose the score, according to SPC Brasil, one of the institutions responsible for the register, called credit bureaus, alongside Serasa, Boa Vista and Quod.

If you don't use credit, you provide less data, which affects your score.

“The score is based on the information received about payment behavior. If there's no information, there's no way of assessing it,” says Elias Sfeir, president of ANBC (National Association of Credit Bureaus).

He uses the US as an example, where the economy is very much based on credit.

“If you go to the US, you don't exist in the system. If you have no credit, you have no history. Those who go there are looking to pay something back in order to get into the system,” he says.

Only bank details are used

For the first time, the score is only calculated on the basis of consumers' banking information, according to SPC Brasil. In other words, for the time being, anyone who doesn't have a bank account or doesn't use these services is not included in the register.

For credit cards, only information on due dates and payment amounts is included in the positive register. There is no information on places or products purchased.

In the next phases, information on the payment of water, electricity, telephone and credit accounts should also be included. “This is important because it will bring together people who are not banked, but pay their bills on time,” says SPC Brasil.

Reinaldo Domingos, president of Abefin (Brazilian Association of Financial Educators), praises the positive register, but advocates that more information on cash payments be included.

“We've come a long way. Before, [the consumer] had to get the information there [in the positive register]. Now it's automatic,” he says. “But people who buy with cash can be penalized. This can be improved. All purchases have to be analyzed.”

It's not about getting into debt

The volume of credit used influences the score. “The more information about consumers” credit history that can be analyzed, the more assertive the score will be, because the score will be made up of all this history of the good payer's behavior," says SPC Brasil.

So, if you want to increase your score or make sure you are perceived in the right way by institutions, the more information you send, the better, according to the president of ANBC.

“That doesn't mean you have to buy everything on credit to get a better grade,” he says. “Everyone has to look at their economic situation. Sometimes you get a discount upfront, sometimes it doesn't pay to pay in installments. It's a balance.”

SPC Brasil is also warning.

“It doesn't mean that consumers should make multiple purchases in installments or take out multiple loans, as high indebtedness can also be a problem and cause defaults,” he says. “The right thing to do to get a good score is to use credit in a conscious and balanced way, always keeping your commitments up to date.”

How can I improve my score?

Sfeir says that there is no magic formula for getting a good score, but there are good practices that help improve your score. He lists a few:

• If your name is in the red, settle or renegotiate overdue debts
• Avoid delays in paying bills such as invoices and boletos
• Put bills on automatic debit, avoiding the possibility of arrears
• Check with companies whether they are sending your payment habits to the positive register
• Put at least one household account in your name to build up history, if you are not responsible for the accounts
• Keep your registration details up to date with credit protection services
• Avoid using credit or credit cards to the limit of your ability to pay
• Track your credit score

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