How credit analysis works in banks and finance companies?

In order to avoid default and even offer lower rates for those with a good payment history, financial institutions do a credit analysis before granting a loan.

This analysis, which consists of a series of checks, is important for both the finance companies and the customers themselves. Without it, interest rates would be much higher and, in addition, there would be a risk of customers getting involved in debt. Are you curious to know how credit analysis works? Then read on!

Request for registration information

Request for registration information

First of all, the bank needs to know who you are, doesn’t it? Therefore, the first stage of credit analysis is the provision of registration data, which must always be true. In general, it is requested:

    – full name (with identity card and CPF);   

    – date and city of birth;

    – name of your parents;

    – contact information (address, phone and email); 

    – professional data (your profession, income and employer, when applicable);

    – information about your spouse, if any.

In some cases, it is common to request data on your assets, such as assets, means of payment and personal and professional references – the information requested changes depending on the credit line. Registering for a personal loan, for example, tends to be simpler, while real estate financing asks for more details.

Restriction analysis

Restriction analysis

With your information in hand, the institution will do the first verification: analyze whether your name has any financial pending. This analysis is made both in the financial institution’s own database, as well as in external services.

Credit profile check

Credit profile check

To understand how credit analysis works, it is necessary to know what a credit score is, since this is one of the main tools used by finance companies to verify that you are within the proper profile.

The credit score is a personal score, taking into account information such as:

    – payment of bills to maturity;    

    – debt payment history;    

    – financial relationship with companies.

You can check your credit score online, two of the main companies specialized in this subject in the country. To improve the score, the ideal is to pay your bills on time, pay off or renegotiate your debts and keep your details up to date at banking institutions.

Documentation check

Documentation check

If, after all the verifications, you pass the credit analysis, the company will ask for your documentation in order to verify the authenticity of the registration information. The most requested documents are proof of residence and income.

Ready! Now you know how credit analysis works in financial institutions. It is worth mentioning that, although this verification involves a lot of information, it is usually quick – in personal loans, for example, it is common for the amount to be released on the same day, since, with the increasingly advanced technology, many of these analyzes are made automatically.

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