Debts will be in the credit bureau for less time in Ecuador

Ecuadorians will soon see their credit histories updated more frequently, with new regulations shortening the time that debt information remains in credit bureaus. The Junta de Política y Regulación Financiera y Monetaria (JPRFM) approved a reform on August 20, 2026, that reduces the maximum period for credit information retention from six years to four years, counting from when a debt is legally extinguished.

This reform also alters the data used for credit scoring. Credit bureau reports will now only include information on active, overdue, or canceled debts from the previous two years, a decrease from the previous three-year window. This means older financial history will have less impact on an individual's credit assessment. However, authorities emphasize that this change does not erase outstanding debts or guarantee new loans.

While the reform aims to make it potentially easier for individuals with past payment issues to access credit, it does not eliminate the obligation to repay debts. A debt remains legally binding regardless of its presence in credit reports. Financial institutions will still consider factors such as income, current debts, and repayment capacity when evaluating loan applications. The reform is to be implemented gradually and in coordination with regulatory bodies.