The concept of a credit score gained momentum in the 80s. Until then, the decision on the granting and conditions of credit depended solely on human judgment, based on the so-called “name on the square”. In other words, creditors used their experience in observing consumers' past behavior when taking out credit to evaluate new consumers. As well as being prone to flaws, this was a slow process, unthinkable nowadays, when countless credit applications are processed every day.

The appearance of the score has made this decision faster, more reliable and fairer. This is because the score is based on numerous variables and statistical data, involving the analysis of factors related to the consumer's history of credit behavior, such as paying bills on time, negative debts, financial relationships with companies and up-to-date registration data. The score generally ranges from zero to 1000 points, and the higher the score, the more power the consumer has to negotiate facilities and select creditors.

The score brings clarity to the relationship between those who offer and those who ask for credit, since both have access to the information. Those who need credit can use a good score as a tool to negotiate better conditions, such as lower interest rates or longer terms. And organizations that work with granting credit, such as banks, financial institutions, commercial establishments, telephone companies and various service providers can make safer and faster decisions.

In countries like Germany, the United States, France and Italy, the credit score is widely used and its benefits recognized by all those involved. In Brazil, the use of the score is still low, but it tends to gain momentum as it comes to be seen as a facilitator of credit concessions, with benefits for all parties involved. In the first half of this year, credit bureaus began providing the score to consumers free of charge, in a quick, simple and practical way via their websites. By registering, consumers can see if they have any overdue debts in their name, identify their credit score and, in addition, get extra help to control their financial life.

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