finance a car

Are you going to finance a car? Learn more about positive registration 2021

finance a car

finance a carfor a person to be approved for credit to finance a vehicle, they need to prove their income and have no restrictions attached to their name.

But, following the trend in other countries, financing companies in Brazil are going further and basing themselves on the client’s history, and one of the ways to do this is through a positive registration.

Do you already know him? To learn more about positive registration and understand how it reflects on your finance a car financing conditions, continue reading this article. car loan

finance a car 2021

finance a car are passionate about cars, and buying their own vehicle is among the priorities of many people. However, the crisis scenario in the country in recent years has led many people to have their fixed income reduced.

According to the Continuous National Household Sample Survey (PNAD), 44% of economically active workers are informal. With this, people have more difficulty in proving income compared to those who have pay stubs, for example.

Given this scenario, finance companies need to resort to new methods that help in analyzing the customer profile, which seems to be working. In the first quarter of 2019 alone, R$ 34 billion were released forfinance a car, against R$ 28 billion in the same period in 2018.

CAN PEOPLE WITH THE NAME “DIRTY” finance a car?

It is well known that a restriction linked to the name is an impediment to the approval of a car loan. And the worst thing is that, today, more than 60 million Brazilians face this reality.

While we know that failing to pay a bill is not always bad faith, the truth is that if you don’t, getting credit becomes very difficult.finance a car

Suppose an individual became unemployed and was unable to pay an installment on time. With the interest generated, the debt became a snowball, making it even more difficult to settle the debt balance. Then, as a way out, he seeks to purchase a car to use as a tool for self-employment.

In this case, financing may even be possible, but at high rates compared to someone with the “clean” name.

finance a car
Who is in default can even get the financing, but will pay more for it. On the other hand, having a “clean name” is not enough to obtain the best financing conditions nowadays.

Banks have used the Credit Score to assess the consumer profile and analyze the investment risks that the bank takes. This system is a computerized tool that gathers information about the customer.

Among them,  finance a car public data, such as the Census and default rates by territory, and the consumer profile, which is considered based on the following elements:

• profession;

• proof of income and residence;

• education;

• lawsuits;

• protests at the notary’s office.

AND THE POSITIVE REGISTRATION, WHAT IS IT?

The positive registry has a proposal similar to the credit score, but it is based on a federal law. Its purpose is to create and consult databases with information for building a credit history. Such history generates a score for the consumer, which can be favorable or unfavorable for the offer of a financial product.

The positive register exists since 2011 (Law No. 12,414) and came into force in 2013, but so far there has been low adherence, probably due to the need to request inclusion in the register, making the database with little information about consumers.

However, in April 2019, changes in the Positive Registry law were sanctioned by President Jair Bolsonaro and will take effect in October this year. From then on, every consumer will automatically enter the Positive Registration list without prior authorization. However, participation is not mandatory. If you wish, you can ask to leave.

The positive record in operation means that banks will have more information to identify the “good payer” profile of the potential customer, including for vehicle financing.

HOW DOES POSITIVE REGISTRATION WORK
The positive register shows the consumer’s history, the accounts he has and whether payments are made on time, and how much of his monthly income is committed to debt. Experts indicate that this type of information guarantees greater security and less risk of default for the financial institution.

Information for positive registration is collected by channels such as the SPC (Credit Protection Service) and Serasa, which are already sources of consultation for defaulters.

It is estimated that, with the functioning of the positive registry, approximately 22 million Brazilians who are without credit in the market will be able to regain their purchasing power in the long term.

Any consumer can be part of this list, including those who are negative. By looking at its history, a situation such as the example we presented above may lead to more flexible rates for financing.

HOW TO GET A GOOD SCORE ON THE POSITIVE REGISTER
Having a good reputation in the positive registry will facilitate the financing approval process under favorable conditions of fees and installments. A good positive record score increases the credit score for a vehicle loan.

To get a good score in the positive registration and be able to finance your vehicle at the best rates, try to keep your name “clean”, pay the bills on time and keep your data updated in the positive registration.  https://www.barclays.co.uk/loans/car-loans/

Saving, investing in Tesouro Direto or even in shares does not affect your status in the positive register. But if you want to invest in stocks, always check the stock and investment reviews available.

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