Mercado Pago Credit Market – Find out how it works now!

Mercado Pago's Mercado Crédito is a diversified, hassle-free product. Read on for more details!

Mercado Pago is a digital bank with approximately 36 million active users. It offers diverse products to its customers and stands out for its ease of use. 

Among the main services it offers as a fintech, we find Credit Market. A versatile, hassle-free financial product that can be requested even by those with bad credit. 

In today's text, you'll discover the main details about this service: how it works, the application process, and much more!

Don't miss it! 

How does Mercado Pago's Mercado Crédito work?

Mercado Crédito is a line of credit offered by Mercado Pago to its customers. The available credit limit can be used, for example, to apply for a loan, pay bills, and make purchases without needing a credit card. 

This credit isn't available on the card, only in your account on the platform. However, you can withdraw it when applying for a personal loan, as the requested amount is immediately available in your account. 

How does the limit work?

The limit works like a credit card. You have a certain amount available to use in the Mercado Pago or Mercado Livre apps. 

If you have a loan available, you can request it from your limit and withdraw it or use it as balance in your account. 

With the Mercado Pago Credit Market You can pay your purchases and bills in up to 12 installments, but with interest added. 

Interest rates are personalized and tend to be high, even if the customer already has a good relationship.

But it is possible to have access to a more attractive interest rate as your level increases Points Market, MP rewards program or if you are a seller on the platform. 

Your credit limit is reset every time you pay your bill, but you must consider the interest discounts added. 

Regarding the limit increase, it happens automatically according to the use of the current credit, and it can even decrease due to X factors, for example, late billing. 

Is it possible to increase the limit more easily?

Mercado Pago doesn't hold back when it comes to granting credit. You can get great credit limits, even if you have a bad credit history. 

First, you must be a Mercado Livre customer and make frequent purchases online.

Once Mercado Crédito is available in your app, you can start using your limit.

As you use it and pay correctly, it will gradually increase. To speed up this process, continue using your Mercado Pago account to receive payments, send money, pay bills, port bills, etc.

Additionally, you can acquire new financial products, for example, cryptocurrencies or some other investment model.

Over time and depending on your behavior in the app, the limit may increase automatically or the bank will provide a button where you can request a credit increase.

You enter your income, and they'll increase your limit immediately, within seconds. After the limit increases, this option will disappear and only reappear after at least three months.

Even if you have a bad credit history and have already obtained credit from the Public Prosecutor's Office, new debts linked to your CPF can prevent your credit from increasing, and can even cause it to decrease.

Personal loan

With Mercado Pago's Mercado Crédito, you can also apply for a personal loan to use as you wish. 

The amount varies depending on your limit. If you wish, you can request your entire credit as a loan. 

The money appears in your Mercado Pago balance instantly, and you can use it however you like, including withdrawals.

It is worth noting that personal loans are not available to everyone with a limit on Mercado Crédito.

If you already have credit, but the option to apply for a personal loan hasn't appeared in your app yet, keep using the service, as it may appear soon! 

One of the main disadvantages of applying for a personal loan this way is that the interest rates can be high, especially if you have a bad credit history.

Therefore, it's crucial to only apply for this loan in extreme cases. Also, avoid paying in multiple installments, as the larger the number of installments, the higher the interest accrual. 

If you need an urgent loan, research cheaper alternatives first, for example, loan assigned by Auxílio Brasil. 

How do I use Mercado Pago's Mercado Crédito for installment purchases at partner online stores?

There are many stores that partner with Mercado Pago and therefore accept Mercado Crédito as a payment method. 

Choose the “Mercado Crédito” option and proceed with the payment in your Mercado Pago account.

Can I use Mercado Pago's Mercado Crédito to pay in physical stores?

Yes. To use credit in physical stores, simply pay with a QR code. Scan the store code in your app and choose Mercado Crédito as your payment method. 

To do this, you will need to have your cell phone with you at the time of purchase and have internet access to access the app. 

Bill payments and top-ups

As mentioned above, this service is quite diverse, allowing you to use credit to pay for a variety of services and bills. You can also pay in up to 12 installments. 

You can, for example:

• Recharge your cell phone;
• Add credit to the transport card;
• Recharge your prepaid TV;
• Pay for streaming service subscriptions.

You know those electricity or water bills that were so high that you couldn't pay them and they're already piling up? 

Node Mercado Pago Credit Market You can pay your utility bills and pay in up to 12 installments.

This way, you'll have more time to pay without risking having your service canceled. The only downside is the interest rate. However, in a pinch, it's very useful.

Is the Mercado Pago credit card limit the same as Mercado Crédito?

No. The limits are different. However, customers who already have a limit to use with Mercado Crédito will have an easier time receiving approval when applying for a Mercado Pago credit card. 

This card is still new to the market and is being gradually released to customers who were already on the waiting list.

If you wish to register on the waiting list, you can do it through the Mercado Pago app or website.

The Mercado Pago credit card has no annual fee, and with it, you can pay for purchases on Mercado Livre in up to 18 interest-free installments. 

Your purchases also earn double points on Mercado Pontos. You also get access to exclusive discounts and free shipping on some ML products.

How to activate Mercado Crédito?

If you are already a customer and have the Mercado Pago app, access the menu and click on “Mercado Crédito or Activate Mercado Crédito for Free”. 

If you already have an available credit limit, the amount will be displayed. If you don't have any credit yet, you can request it. 

The application process is simple and straightforward, and you will receive a response in no time. 

The bank will request some information to ensure the security of your account and will also send a verification code to the phone number registered in the app.

If the answer is no, continue using the Mercado Pago app; you will certainly have an approved credit limit shortly. 

For those who are not yet a customer and want to check if they can get a credit limit right away, simply download the MP app and open an account.

The recommendation if you don't have a credit limit is the same: continue using the app frequently and using the services it offers.

Is it worth using Mercado Pago's Mercado Crédito?

Having a credit limit available to use whenever and however you want is not bad at all, on the contrary, besides being good, it can get us out of trouble! 

Furthermore, having credit in the market even if you have a negative credit rating, when you couldn't get it anywhere else, is also great!

However, everything comes at a price! In this case, it's the interest rate. Use this service only if absolutely necessary and do some financial planning before purchasing. 

Unfortunately, the MP interest rate may make this financial product not as advantageous as we would like, especially if the client does not have a good financial track record.

In short, it's worth applying for, as it's a hassle-free, diversified loan. However, it can be expensive. 

Therefore, use it with great care, discipline and wisdom to avoid getting into debt and running out of credit.  

Conclusion

Know how to manage this financial product well. While it's useful in emergencies, it can be costly, as interest is charged and the rates aren't among the most attractive.

Use the Mercado Pago Credit Market with caution and intelligence so as not to fall into over-indebtedness. 

If you need a loan, consider cheaper alternatives before applying. 

Read also: What to do with credit card debt? Learn how to get rid of them efficiently!