Profile of good payer analyzed in research justifies increase in credit; while another portion of users (14%) believe the limit should be reduced.
Considered the villain of finances due to consumer misuse, credit cards still have room to grow in Brazil. This optimistic scenario remains, even in the face of the high default rates still faced by the majority of families.
The possibility of increasing credit card limits is discussed in a study by Serasa Experian, a data-tech company specialized in intelligence solutions for risk and opportunity analysis, which shared the research results exclusively with InfoMoney.
The methodology of the research is structured on data collection from customers of four financial institutions in Brazil, whose names were not disclosed. The four banks use Serasa’s analytical intelligence solution, which claims to have analyzed at least 4.5 million CPFs.
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According to Serasa, it was possible to verify that there is room to increase the limit on 27% of the customers’ cards from the four financial institutions analyzed. In value terms, the current credit card limit of R$ 4.9 billion could potentially increase by 67%, an increment of R$ 3.1 billion, reaching R$ 8 billion in total credit granted on credit cards.
For the evaluation of this group of customers, Serasa used the Score, a score that indicates the chances of the consumer paying bills on time over the next six months. The closer to 1,000 points, the more this customer is understood as a good payer, and the further from 1,000 points, the higher the possibility of default.
The average score of CPFs that could have their credit card increased was 798 points, a level considered “very good” in Serasa’s classification – indicating that the customer has good credit behavior in the market.
Credit reduced
If there is potential to increase credit card limits for a portion of customers, on the other hand, the limit for another group should be reduced due to potential default risk.
According to Serasa Experian, 14% of the CPFs analyzed have an average score of 366 points, considered “regular.” For this group, the ideal would be to reduce the credit card limit by 33%. The total amount granted would decrease from R$ 1.5 billion to R$ 1 billion, avoiding a possible loss of R$ 500 million, according to the data tech company.
The data tech explains that the group that should have credit reduced consists of customers who show poor credit behavior in the market, with late or outstanding payments, in addition to a high probability of default.
How to use a credit card?
The possibility of increasing the credit card limit is always a risk, especially if the consumer ventures into debts that financial institutions offer: credit card revolving, now limited to 100% of the debt – which is activated when the customer cannot pay the full bill.
Serasa Experian explains that the credit card limit should not be what the financial institution has set for the customer, but what they can afford according to their budget. If the limit granted is higher than their capacity, they should contact the bank and request a reduction.
“As the consumer shows to be a good payer, honoring their commitments on time, it is common for banks to increase the credit limit granted to them. It is up to the consumer to go to the bank’s app and reduce the limit to adjust it to what is feasible within their income,” emphasizes Paula Bazzo, a specialist from Planejar (Brazilian Association of Financial Planning).
For Serasa, the ideal is to limit credit card expenses to 30% of the consumer’s monthly income. “Brazilian families already have about 30% of their income committed to housing.
In addition, it is necessary to include other essential expenses such as food, health, transportation, and, as much as possible, a longevity plan. Therefore, the limit suggested by Serasa helps families to not act recklessly with their finances,” concludes Bazzo.
However, the specialist points out that a credit card can enable dreams, such as a means of payment for travel or the acquisition of a durable good, like a refrigerator, which represent higher expenses that require a credit limit greater than 30% of income.
“The right thing is always to save some money every month until you can make a purchase. But the general behavior of Brazilians is not that.
In fact, the consumer uses credit counting on future income. In these situations, it is necessary to pay attention to the value of installments so that they do not get out of control and end up consuming exorbitant proportions of the family’s income,” explains the Planejar specialist.
