What is Credit Score? Simple explanation

Q: What is Credit Score?

A numerical score that indicates the probability of a person paying their bills on time. Ranges from 0 to 1000 in Brazil.

What is Credit Score?

Credit score is a note from 0 to 1000 that credit bureaus (Serasa, SPC, Boa Vista) give to you. This note indicates to banks and stores what the chance is of you paying your bills on time.

Score ranges

Range	Score	Meaning
Very low	0-300	High risk of default
Low	301-500	Considerable risk
Good	501-700	Moderate risk
Very good	701-1000	Low risk, good payer

What affects your score

Increases:

Paying bills on time
Having a long history of good payments
Having accounts in your name (electricity, phone)
Active Positive Registration

Decreases:

Delaying payments
Having a negative name (SPC/Serasa)
Many credit inquiries in a short time
Using too much of the credit card limit

How to improve your score

Pay all bills on time (even small ones)
Activate the Positive Registration on Serasa
Negotiate and pay off open debts
Avoid applying for credit in many places at the same time
Keep registration data up to date

Why the score matters

With a high score you can get:

Lower interest rates on financing
Higher credit card limits
Easier approval for rentals
Better conditions on loans