Nearly 80% of Brazilians used credit during the pandemic – survey

RIO DE JANEIRO, BRAZIL – A survey conducted by Serasa and Opinion Box shows that 79% of Brazilians resorted to some credit during the pandemic, with credit cards being the most used source – 62% of respondents.

In addition, 62% of people say they intend to use some source of credit during the recovery period.

The survey, ‘The Role of Credit in a Time of Recovery’ polled 2,068 people in all country regions between June 22 and July 2, 2021. The margin of error is 2.2 percentage points, and the confidence level is 95%.

In addition to credit cards, loans from friends and relatives (14%), overdrafts (12%), and salary advances (11%) were used during the pandemic.

Three out of ten Brazilians had to resort to credit six or more times during this period. The purpose of the funds was mainly purchases in general (of essential items and other products) and payment of other debts.

According to the survey, 37% of Brazilians were denied credit during this period. After being negative, 37% sought credit again from digital banks, and 28% gave up borrowing.

About 40% said that the rejection was because the income was considered low, and 35% said they were “dirty”, that is, in default.

Of those who intend to use credit after the pandemic, 40% said credit cards would continue to be the primary source, followed by unsecured personal loans (8%), payroll loans (8%), and financing (8%).

According to the study, borrowing in this second moment is still to buy essentials and pay off debt.

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