Credit access challenges impact Brazilian consumer consumption

In Brazil, consumer credit access is becoming increasingly difficult, impacting household consumption intentions. In Cuiabá, the Family Consumption Intention (ICF) index has seen its third consecutive decline, dropping from 114.1 points in May to 107.7 points in August. This -5.9% variation is linked to a rise in families reporting difficulty obtaining credit, which grew from 40.3% in May to 48% in August.

Financial institutions appear to be applying more rigid criteria for credit assessments. This trend is compounded by high levels of household debt, as many families rely on credit to supplement their domestic budgets.

As an alternative to traditional credit increases, digital banks like Nubank are offering features such as ‘Nu Limite Garantido’. This tool allows users to convert their own investments, such as Treasury bonds or savings, into immediate credit limits. While the funds are used as collateral and remain unavailable for immediate withdrawal, they continue to earn interest, providing a way for customers to increase purchasing power without relying solely on standard risk analysis.