Making payments with credit cards to either pay in installments or simply settle the bill is something that is part of people’s routine. However, if you have a “stained reputation,” it is ideal to find a credit card for those with negative credit history.
Check below the list that Olhar Digital has compiled with the main options.
PagBank: The PagBank credit card can be an excellent choice for individuals with negative credit histories.
It has no annual fee, is international, and also offers various discounts and benefits for the customer. Moreover, the card’s limit can be defined by the customer, with a minimum value of R$ 300.
Superdigital International: Mastercard Another option for someone with negative credit history is to opt for a prepaid credit card.
That’s what the Superdigital International Mastercard offers. You recharge the card with the desired amount and can then make your purchases.
The downside of this card is that its limit is only what you load onto it.
SX Card: With no annual fee and recommended for individuals with a low credit score, the SX card is from Santander bank and offers discounts, cashback, and credit card withdrawals.
To apply for it, it is advisable to open an account with the financial institution.
Santander SX University: Card If you are a student, this can be a good choice, as approval is easier, but like the previous one, open your account with the bank.
Olé: Card This credit card for those with negative credit history is consigned, meaning you make your purchases normally with it, and at the end of the month, a minimum amount is automatically deducted from your payment.
The remaining balance must be paid within 30 days after the due date.
Caixa: Card Especially for INSS beneficiaries and federal public servants. A portion of the bill payment is deducted, corresponding to 5% of your salary, pension, or retirement. If requested at the time of hiring, it is possible to have 20% to 70% of the credit limit in cash in the account.
How to clean your name and remove negative CPF from the defaulters’ list?
A step-by-step guide to clearing your name, restoring financial balance, and regaining access to credit to pursue your projects.
The Consumer Indebtedness and Default Survey (PEIC), conducted monthly by the National Confederation of Commerce of Goods, Services, and Tourism (CNC), reveals that, in July 2022, 78% of Brazilian families were in debt. Economic crisis, pandemic, unemployment, and other factors disrupt the finances of many families.
As a consequence, an even larger number of people ended up with the so-called “dirty name,” meaning their names were included in the defaulters’ lists at Serasa, SPC, Boa Vista (credit bureaus), and other companies operating in credit protection.
In other cases, CPF may be negatively affected because a person forgot to pay a bill.
It’s effortless to find out if you’re in this situation: simply check your CPF for free on credit bureau websites or, alternatively, on debt collection and credit recovery companies that offer free consultation services.
Found out you’re in default? Stay calm: we’ve prepared this special article to help you clean your name and get rid of a problem that troubles millions of people.
What is “dirty name” When someone buys a product, service, or takes out a loan and fails to pay on the due date, after some time, their name ends up on lists of people with credit restrictions.
This is what became known as the “dirty name.” Generally, before this happens, creditors try to collect the debt amicably and give a deadline for payment.
If it is not paid, they can request the inclusion of your name in defaulters’ registries. These registries are maintained by companies such as Serasa, SPC, and Boa Vista and aggregate information, by CPF, about unpaid debts, protested titles, and bounced checks.
These data are consulted by companies and financial institutions that want to protect themselves when granting installment plans, credit cards, loans, or financing.
It’s straightforward to find out if your name is on the defaulters’ registry (credit protection lists): just visit the website or go in person to a service point of one of the credit protection agencies (Serasa, Boa Vista, and SPC) and check your CPF for free.
You can also access the websites of credit recovery companies in the market and verify if they are responsible for any debts in your name.
WHAT ARE CREDIT PROTECTION LISTS
These are databases that store and organize information about the credit history of individuals and companies, whether positive or negative (overdue and unpaid debts, protest records, from public and official sources, and bounced checks).
The most well-known are managed by Serasa, SPC, and Boa Vista, but there are others, such as Quod and Deps. In addition to information about negative CPFs, these lists also influence the credit score.
Disadvantages of having a dirty name According to the Serasa Experian Consumer Default Index, in June 2022, there were 66.8 million Brazilian consumers with a dirty name. But what are the implications of not paying overdue bills? Here are some consequences:
Suspension of benefits offered by financial institutions;
Lack of credit options for emergencies;
Difficulty in financing a home and contracting installment plans;
Loss of purchasing power by having to pay in cash;
Problems in getting a job.
In addition to these implications, indebtedness harms relationships, causing disputes, and mental and emotional health problems, leading to sleep loss, and in some cases, even depression.
In these cases, or if you realize that you shop compulsively, it is necessary to seek help. The Unified Health System (SUS) provides free psychological assistance through CAPs – Psychosocial Care Centers.
With your SUS card (Unified Health System) in hand, go to the nearest health unit and request the service.
“66.6 million Brazilian consumers have a dirty name.”
Do debts expire?
How long can my name be “dirty”? According to the Consumer Code (article 43), the maximum period for the debtor’s name to be kept in the credit protection agency’s registry is five years.
After that, your name should be removed from the defaulters’ lists. When this happens, the debt is usually said to have “expired.”
The debtor’s CPF then stops being negative, but this does not mean the debt is canceled. On the contrary, it remains pending, and the creditor can continue to collect, either directly or through specialized agencies. They may even file a lawsuit.
Therefore, it is not advisable to wait for the debt to expire for several reasons: during this period, the debtor will hardly be able to finance a car or a home, for example.
Even after five years, the establishment or institution that was left unpaid may continue to deny credit to the debtor.
Throughout the negotiation process, always have your identity card and CPF on hand.
It is also important to gather all documentation related to the debt, such as proof of payment of previous installments and loan agreements. If you already have all the necessary documents in hand, let’s get started!
- Contact the creditor The first step is to contact the creditor, whether it is a company, store, or bank, to pay or renegotiate the debt. In general, creditors are willing to eliminate interest and extend deadlines to lower the installment amount.
Many companies and financial institutions have channels for delinquent customers and often offer special conditions for those looking to get out of debt and clear their names.
Check our article on how to negotiate debts with banks for tips and suggestions for renegotiation.
- Negotiate the debt so you can afford it Develop a proposal that fits your budget and present it to the creditor. This shows that you have good faith and a willingness to resolve the situation quickly, as well as opens up the possibility of paying an amount that will not completely compromise your budget.
When it is not possible to reach a viable agreement, request mediation from the Consumer.gov.br service, through the Gov.br portal, which brings together information and facilitates citizens’ access to thousands of public services, including debt renegotiation assistance.
This service is maintained by the Consumer Secretary, Public Prosecutor’s Office, state Procon offices, and brings together companies and banks around the proposal of helping Brazilians get out of debt.
To access the service, you need to have a Gov.br account. Want to know more about the topic?
Read our special article that covers everything you need to know to create and upgrade your Gov.br account.
- Take advantage of negotiation events and debt clearance fairs It’s worth keeping an eye on debt clearance fairs and debt renegotiation events! Febraban (Brazilian Federation of Banks), in partnership with banks, organizes some events throughout the year. Serasa and other credit bureaus also hold fairs nationwide.
Participating in negotiation events is straightforward: find out when they will happen, go to the website, and fill out a registration. You will be directed to a page that shows the list of all participating institutions, and, if desired, you can proceed to negotiation.
- Check if your name has been removed from the defaulters’ list After paying or renegotiating the debt, the creditor must request the removal of your name from the registries within five business days. You can also go to credit protection agency service points with the proof of the paid debt (the so-called Quitation Letter), and your name will be automatically removed from the list of debtors.
In English, the word “score” means a score. And the credit score is exactly that: a score given to each individual and used by financial institutions, companies, and retailers to decide whether they will grant credit to that person or not.
The score is calculated by credit bureaus and some banks and stores that do their own scoring of their customers.
The score is used as a risk assessment parameter, meaning companies use your history to estimate whether you will be able to pay for what you are buying or hiring.
The higher the score, the higher the likelihood of payment. Check out our video on the topic, on My Bolso em Dia TV.
The score ranges from 0 to 1000. If your score is up to 300 points, you are in the group of consumers with a high risk of default. From 301 to 700 points, in the medium-risk range, and from 701 to 1000 points, low risk.
A series of data is taken into account to establish the score: the presence of the CPF on the defaulters’ list, payments of bills overdue or on time, financial transactions, and updated registration information are some of them.
Also considered are requests for new credit cards, increases in the limits of the cards you already have, and your frequency of seeking credit.
The score is not fixed. It can change at any time, according to your behavior. However, this does not happen overnight. If you have a low score, even if you pay off overdue debts, for example, it may take a while to achieve an average or high score because the calculation considers a certain period of time and not just the consumer’s current situation.
To improve your credit score, follow these tips:
Clean your name;
Pay bills on time;
Anticipate the payment of debts;
Keep your information up to date;
Keep your credit limits and balances under control.
The positive registration works as a “financial resume,” in which good payment habits are rewarded with positive points. It gathers information about how commitments of a certain CPF were settled.
Paid off your loans, financing, and installment plans on time? Kudos to you! The positive registration records the quantities and values of credit operations, as well as the consumer’s behavior and punctuality in paying their bills.
Adhering to this registry is interesting because, over time, it is possible to build a good history, which increases the chances of obtaining more personalized credit offers with lower interest rates, reducing the possibility of debt.
Having a dirty name in the market brings nothing good. On the contrary, being in this situation generates various difficulties for financial life and increases stress levels.
On the other hand, paying off debts and clearing your name not only ensures greater access to credit and increased purchasing power but also usually brings more emotional health and well-being.
Often, the difficulty in clearing your name is related to a lack of information. Next, we will clarify some common doubts about the subject.
Is it possible to clear your name online? Yes! Banks and other financial institutions, as well as recovery and credit bureaus, offer online debt negotiation channels. To access the service, simply visit your bank’s website or the bureau or company, register, and log in.
Then, you will be directed to a page with proposals to negotiate debts with the companies to which you owe and payment plans. You do not have to accept the first proposal.
See if it is suitable for you. After closing the agreement, just print the ticket and pay the installments on time.
Is it true that the name clears automatically after 5 years? Yes.
However, it is not advisable to wait for this deadline because, in addition to the consequences of having a dirty name, such as difficulty in accessing credit to meet the needs of the family or yourself as an entrepreneur.
Is it possible to clear the name for free? Yes. Banks and other financial institutions, as well as recovery and credit bureaus, offer the service of clearing the name completely free of charge.
The only money you will need to spend is the amount of the installments agreed upon in the debt renegotiation.
How long does it take for the CPF to stop being negative? After the debt is paid or renegotiated, the deadline for your name to be removed from the defaulters’ list is up to five business days.
If this does not happen, contact the creditor, company, or institution responsible for the negotiation, and with the proof of debt settlement in hand, request your name to be excluded from the list of debtors.
Is it possible to get a loan with a negative CPF? Yes. There are companies specialized in providing personal loans to people with a negative name.
The release of credit usually depends on the loan amount, and interest rates are usually much higher than those accessed by those with a clean name.
This happens because the risk for the lender is also higher. And risk has everything to do with the interest rate charged.