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Month after month, the cycle repeats itself: bills and invoices flood into your email address or mailbox. With so many papers and due dates, you need to keep track of them to avoid leaving anything behind. Delays generate financial costs in the form of fines and interest. What's more, when they recur, they signal something is wrong with your financial life, reducing your chances of obtaining credit if necessary.

The effort to maintain punctuality pays off: this is a decisive element in the composition of the credit note (or score). You may have come across this expression when trying to make a purchase, hire a service, apply for a mortgage or even rent a property - anything that requires a credit analysis.

Based on your payment history, the credit score indicates the probability of default associated with your credit behavior and profile. This assessment is dynamic and changes according to your new payments, giving consumers the opportunity to improve their relationship with credit and obtain higher scores. The higher the punctuality, the better the credit score; the lower the history of negative credit records, the better the credit score.

The transformation of credit history into relevant information for business has benefited from information technology and data science. Combined with the new positive credit record, the credit score indicator has become increasingly accurate in predicting the behavior of creditors. consumer and mitigate the risk of default.

A survey carried out by the National Association of Credit Bureaus (ANBC) showed that the majority of Brazilian consumers already know what a credit rating is. According to a survey carried out between August and September 2021, this percentage was 66%. Also according to the survey, 501,000,000 said they knew their own bill, and of these, nine out of ten had taken the initiative to consult it.

For those who still don't know, the credit note is in the palm of your hands. With just a few clicks, you can check your credit score for free. The credit bureaus make the information available on their websites and apps. At the end of the text, we've listed the addresses where credit scores can be consulted, remembering that there may be variations between them due to the adoption of different analysis models.

For those who started the year wanting to organize their financial life, the first step is to make a diagnosis of the situation. Consulting your payment history and credit rating is a good start. From there, the consumer should take action, investigating the reason for the delays. In some cases, this is due to a lack of organization when paying bills. In other, more serious cases, they reflect the consumer's over-indebtedness and insolvency. Both situations deserve treatment, not least because the first case can lead to the second.

If the simple record of denial provides a snapshot of the moment, the credit score is equivalent to a movie, giving credit grantors more security. In addition to being more complete, the credit score makes it possible to evaluate consumers almost instantaneously, and its low cost makes it easier for small businesses to use. For consumers and the credit market in general, the dynamism of the credit score creates an incentive for punctual payments. We know that, in economics, incentives are powerful.

The widespread knowledge of the credit rating is yet another chapter in the maturing of the credit rating industry. Brazilian credit market. The bureaus will continue to work to build ever more accurate models and, at the same time, to empower consumers with the information they need to take control of their financial lives.