Does Mexico Have Credit Scores and What You Need to Know

Mexico does have a system of credit scores, but it's not as widely used as in the US. The most common credit score in Mexico is the SCTR, which is calculated by the main credit bureaus: Círculo de Crédito, Equifax, and Experian.

Credit scores in Mexico range from 1 to 1,000, with higher scores indicating better creditworthiness. A good credit score in Mexico is typically above 750.

To build a good credit score in Mexico, you'll need to demonstrate responsible payment behavior, such as paying bills on time and keeping credit utilization low.

A different take: What Is Good Credit for a Car Loan

In Mexico, credit scores are not as widely used as they are in the United States, but they're becoming increasingly popular.

Mexican credit scores, known as "scores de crédito", are calculated based on a person's payment history, credit utilization, and other factors.

Most Mexican banks and financial institutions use the SICOFI credit scoring system, which assigns a score between 300 and 900.

A good credit score in Mexico is typically considered to be above 600.

Mexicans can check their credit scores for free through various online platforms, such as the SICOFI website or through their bank's online portal.

Having a good credit score in Mexico can make it easier to get approved for loans, credit cards, and other financial products.

In Mexico, credit scores are used by lenders to assess the risk of lending to a particular individual or business.

Mexican credit scores are also used to determine the interest rates that individuals or businesses will pay on loans.

Mexicans can work to improve their credit scores by making on-time payments, keeping credit utilization low, and monitoring their credit reports for errors.

Credit scoring in Mexico is a bit more complex than in other countries, but it's still an essential tool for lenders to assess creditworthiness.

Research published by Mexico Business reveals that 7 out of 10 Mexicans cannot obtain credit from traditional banks because they lack access to banking services. This is largely due to a preference for cash transactions and limited use of credit cards and other banking products.

Suggestion: Credit Scoring in Banking

Traditional credit scoring in Mexico utilizes borrower credit history data from the Official Credit Bureau—Buró de Crédito to make lending decisions. However, even this may not be sufficient to receive a positive response to a credit application.

Digital credit scoring in Mexico involves using data from various non-traditional sources to assess the creditworthiness of applicants. Mexico Business News mentions common alternative data sources used in Mexico, including transaction history on savings and checking accounts, tax information, and digital footprint analysis.

Digital footprint analysis is particularly relevant for credit organizations in Mexico, as a large part of the population is active internet users. According to Statista, in 2023, there were 96 million active internet users in Mexico, accounting for over 75% of the country's population.

The number of Internet users in Mexico is expected to exceed 131 million by 2029. This significant growth in internet usage opens up opportunities for digital footprint analysis, allowing lenders to assess creditworthiness based on online activity.

Here are some common alternative data sources used in Mexico:

In Mexico, credit limits are calculated based on the credit score, company size, and revenue, ensuring an accurate assessment of a company's creditworthiness.

Companies with insufficient information, bankruptcies, or actions by the SAT (Servicio de Administración Tributaria) may not receive a credit score.

Our Mexican credit reports use standard activity codes (SIC or Mexican NAICS) and include essential company identification numbers (RFC), which are critical for accurate company profiling and credit assessment.

To mitigate risks when engaging with Mexican companies, it's essential to have access to comprehensive credit reports and regular updates, which Creditsafe provides through its extensive database.

Credit limits for companies are calculated based on the credit score, company size, and revenue, making it easier to assess a company's creditworthiness and make informed business decisions.

Discover more: Credit Reports with Scores

Mexico has a significant economy, ranking among the top 15 countries globally with a GDP of $1.414 trillion, second only to Brazil's in Latin America.

The country's economic system is growing, with a fintech market that's expanding rapidly due to insufficient access to traditional banking services and the COVID-19 pandemic.

A comprehensive study by Santander Mexico found that the fintech ecosystem consists of 515 companies, with 266 of them created in recent years.

Experts predict that the financial technology market in Mexico will continue to develop, with a Compound Annual Growth Rate (CAGR) of 14.2% over the next eight years.

Online taxi calling services are also popular in Mexico, with a forecasted CAGR of 5.02% over the next five years, according to Mordor Intelligence.

This growth in fintech and online services is a testament to Mexico's adaptability and resilience in the face of economic challenges.

In Mexico, traditional credit scoring methods don't work for everyone, especially those without a bank account. This is because 7 out of 10 Mexicans cannot obtain credit from traditional banks because they lack access to banking services.

Fintech companies are using alternative data sources to assess the creditworthiness of potential borrowers. These sources include mobile operator records, utility and rent payment history, and other non-traditional data.

Digital footprint analysis is particularly relevant for credit organizations in Mexico, where over 75% of the population is an active internet user. By 2029, this number is expected to exceed 131 million.

To create a more comprehensive financial profile of consumers, Mexican digital lenders use alternative data from various sources, including social networks, subscription services, online delivery and taxi calling services, and gig economy platforms.

Here are some common alternative data sources used in Mexico:

These alternative data sources allow Mexican digital lenders to extend credit to applicants without a credit history or with insufficient credit ratings.