Depending on the type of credit contracted, financial entities grant a risk category that, in general, is based on late payment.
Depending on the payment behavior, the advantages of having a good ‘credit score’ allow negotiating better conditions for loans or credits with financial institutions.
How can I know if I have one or more debts in the financial system?
But, what does a credit score consist of? And what do financial institutions rely on to rate their clients? Taking into account that it is a rating that will allow you to access better credit conditions, the credit ‘score’ represents the risk of non-payment of a loan, that is, your credit risk about a financial institution.
It consists of a score that summarizes your credit behavior, so the higher your ‘score’, the less risk you will represent for the company that evaluates you. And, the higher the score, the better credit offers.
Payments improve, two out of three reduce their debts with financial institutions
HOW DOES IT WORK?
According to the Superintendency of Banking, Insurance, and AFP (SBS), the classification is made according to the type of credit contracted.
In the case of consumer loans, for example, the classification is based on late payment and alignment.
And, it is defined as alignment –a say of the regulatory body– to the procedure by which the companies of the financial system are obliged to modify the assigned risk category, according to the higher risk category than another entity has reported.
WHAT ARE THE RATINGS?
Considering that the ‘score’ depends on the type of credit, officially, the SBS Risk Center handles five risk categories: normal (0), potential problems (1), deficient (2), doubtful (3), and loss (4).
For consumer loans (credit cards, personal loans, and vehicle credit), the ‘normal’ category is granted when the client pays on time or registers a maximum delay of eight calendar days; and that of ‘potential problems’ considers arrears in payment, from 9 to 30 calendar days.
The ‘deficient’ category is granted when there are delays in payment of 31 to 60 calendar days; that of ‘doubtful’ is granted when the arrears are from 61 to 120 calendar days and will be considered as ‘loss’ when there are arrears in payment of more than 120 calendar days.
In the case of mortgage loans, the ‘normal’ category is granted when the client pays on time or registers a maximum delay of 30 calendar days; and that of ‘potential problems’ considers arrears in payment of 31 to 60 calendar days.
The ‘deficient’ category is granted when there are arrears in payment of 61 to 120 calendar days; that of ‘doubtful’ is granted when the arrears are from 121 to 365 calendar days and will be considered as ‘loss’ when there are arrears in payment of more than 365 calendar days.
Having control of the expenses that are made with credit cards will help to have good credit behavior (Photo: Pixabay)
But, in addition to the information handled by the SBS, there are also private risk information centers, which “collect and provide information regarding the payment behavior of natural and legal persons. “
As the regulator refers, in our country companies such as Equifax, Sentinel DataMóvil or XChange Peru operate, which act as indicated by the Law that regulates the Private Centers of Risk Information and Protection of the Information Holder (Law No. 27489), but they are not under the supervision of the SBS.
In these cases, each company manages its ratings and scores, and in addition to including the information reported by financial entities, many of them also consider data from Sunat, the Lima Chamber of Commerce, telecommunications and services companies. BASIC.
But, there are also some applications that – with the help of technology – are used to access information on debtors, payment behavior, and risk level of customers, partners, suppliers, and tenants. Khalifa and Valorabien are a case in point.
In the case of Kalifika, for example, the application monitors the variation of your ‘score’ (six categories with scores from 200 to 700) every month and allows you to check your credit history from anywhere; while Valorabien is the first marketplace of credit bureaus in Peru and works as an intermediation platform in which Equifax and Credit Circle are present.