The report of Asobanc and Aval Buró shows a decrease in the number of clients achieve low credit 2022 in Ecuador, as many have moved to the higher ranges of this score, which is crucial when applying for a loan. Having a high number on this measurement indicates a good paying character. These figures were achieved despite the context of the economic crisis in the country.
There is a decline in customers with a score between 1 and 377 points, from 5.22% in December 2020 to 3.44% in December 2022. Even participation is below that recorded in 2019 (4.8%).
How to check your credit history in Ecuador
A credit score is a score between 0 and 999 that measures the likelihood that a client will not pay their loans on time. A score between 689 and 999 points means that the client has little or no unpaid debts in the last 36 months.
While a score between 377 and 689 points reveals that the client – in his credit history – presents some arrears. While a score between 1 and 377 shows that clients have been late in paying their debts several times in the last 36 months.
When the client pays his debts on time, his score will be higher. But, if you don’t cancel in time, your score will drop.
This type of payment behavior is not the same as outstanding obligations in the financial system. “A good credit score is important for access to credit. It opens the door to financing opportunities with better terms and enables the achievement of financial goals,” the report states.
Women received more loans
Of the 925,703 people who accessed credit (including new clients) in 2022, 49.4% are men and 49.9% are women (no information available for the remaining 0.7%).
Women opted for microloans from private banks. According to the report, 59 percent of new microcredit operations (322,000 operations) were granted to women last year.
What it means and how to interpret your score and credit history in Ecuador
Also, women are better payers than men because they have a better credit score on average. For example, women aged 26 to 35 have a score of 726, while men of the same age have a score of 715.
Young people under the age of 25 also had access to more loans. Of the 100% of people who accessed credit in 2022, 110,826 are young micro-entrepreneurs under the age of 25 who received financing. This means that six out of every $10 allocated to young people goes to microloans.
While 76,431 young people under the age of 25 accessed financing in private banks for consumption, an important segment that provides immediate access to liquidity, facilitating the purchase of goods and services, the study shows.
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