Brazilian fintech Serasa has launched an automatic notification service warning consumers of 15 points of a credit score change up or down.
Serasa’s Cadastro Positivo indicator has a score ranging from 0 to 1,000 points which is used by companies when granting credit to consumers. Actions such as paying bills on time generate increases in the customer’s credit score; on the other hand, late payment of invoices and installments subtract points from the score. Another new feature offered to consumers is access to a report with the diagnosis of possible factors that reflect the evolution of the index.
Serasa sources say clear communication about scores helps consumers understand the impact of their actions and avoid surprises when applying for credit. Cadastro Positivo has helped Brazilians realize the value of their personal history of paying bills and loans on time. Until then, the country’s financial system operated on the basis of the socialization of losses: the failure of a minority of the population generated costs that were shared by the majority in the form of higher interest rates.
Cadastro Positivo has changed that because every consumer is responsible for their own financial and banking history through their credit score, company officials said. Each risk analysis office, in addition to banks and fintechs, has its own methodology and score for clients. Higher scores translate to lower interest rates when taking out credit.