More Brazilians denied access to credit

The percentage of Brazilian nationals who attempted to make a purchase on credit or tried unsuccessfully to get a loan last May rose from 21% to 25%. Most were unable to show proof of income or have their names on a list of indebted people.

Figures were released today (Jul 5) by the National Confederation of Shopkeepers (CNDL) and the Credit Protection Service (SPC Brasil).

The survey is conducted every month in 12 regions across Brazil. Eight hundred people are heard from all walks of life and both sexes, aged 18 and above. The research aims to gather data on the variation of credit use and general consumption.

In a note, SPC Brasil head economist Marcela Kawauti says that “easy and debureaucratized credit may seem like a good idea if you need money right away; however, because it involves high interest rates, it may lead consumers to indebtedness and an unbalanced budget.”

The study found that six out of every ten Brazilian consumers (58%) did not resort to any form of credit. The remaining 42% said they used at least one of the options available in the market. The most sought-after possibilities were credit card (35%) and store cards and consumer-credit sales (16%). Overdraft was the choice of 7% of the respondents. Five percent declared they took out a loan, and 4% long-term finance.

Translated by Fabrício Ferreira