Credit cards as a tool for building credit history in Peru

In Peru, credit cards serve as a primary tool for individuals to build a credit history, which is essential for securing future loans with preferential rates. A credit history reflects financial decisions made over time and is used by banks to assess risk.

Credit bureaus such as Equifax and Sentinel, along with official reports from the SBS, track various data points including personal and vehicle loans, mortgage details, credit lines, and current or overdue debts. This information is updated monthly and categorizes borrowers into classifications ranging from 'Normal' to 'Loss'.

Financial institutions weigh defaults more heavily than punctual payments. Consequently, even a single late payment can have a significant and prolonged negative impact on a person's credit rating, regardless of whether the debt is eventually regularized.