The growth of bank credit in Indonesia continues to experience a pretty encouraging increase. The rate of bank credit looks increasingly positive in 2018 and this positive trend continues in 2019. The Financial Services Authority (OJK) recorded bank credit growth in June 2018 of 10.75 percent. OJK data also shows that the ratio of bad loans or non-performing loans (NPLs) in the banking sector has declined.
According to OJK records, gross banking NPL in June 2018 was 2.67 percent. That number is down 0.12 percent compared to the NPL in May 2018 which reached 2.79 percent. A decreasing NPL shows that the public is more obedient in paying the proposed credit. Along with the times, “Credit Scoring” was not only used in financial institutions or banks, but also can be used in online investment or savings and loans based on information technology. Giants use this system to assess borrowers. In fact, most borrowers have not been touched by banks or financial institutions. This is because, the characteristics of borrowers are rural people who do not have access to banking (unbanked).
With the existence of a giant community in the village or even remote areas can enjoy access to online loans in order to get “Credit Scoring” easily and can follow the world trend of globalization in financial services, especially online credit loans. A credit score is a reflection of a financial reputation that can illustrate a person’s level of compliance in meeting his financial obligations. Credit score is the value given by the bank / fintech to prospective borrowers based on financial historical data. Usually this credit score is used by the lender to determine the eligibility of individuals in getting a loan.
How do you maintain a good credit score?
Know Credit Taken and Ongoing
The average loan facility or credit facility provided by banks or other financial institutions is generally known to the public. Ranging from Unsecured Loans (KTA), Home Ownership Loans (KPR), to Motorized Vehicle Loans (KKB). Which of the credits did you take?
Pay Installments Before Maturity until Paid In
Late payment of credit installments to the extent that arrears is the root of the problem why BI Checking is judged to be so bad that it is included in the BI Checking Blacklist. That is why it is important to always remember and pay credit installments before maturity.
Know the Limits of Using a Credit Card
Indeed, you choose a credit card because the limit offered is as you wish, for example Rp. 6 million. You are free to make transactions up to Rp. 6 million. However, it would be wise if using less than the specified limit. Because if at any time you happen to delay paying credit card bills of Rp. 6 million, this will make the credit score considered bad. The good, use less than 30% of your credit card limit.
As much as possible Avoid Credit Card Minimum Payment
Using the minimum payment option or minimum payment to pay credit card bills is OK. As long as they are ready to bear the consequences of poor BI Checking. How can? There is no guarantee that your debt will not pile up, causing you to have trouble paying credit card bills.
Save Proof of Transaction for Use in Overseeing the Credit Report
Sometimes mistakes can be done by banks so that credit bills reported to you look unnatural. To avoid this case, it is better to keep evidence of credit card transactions. That way, the error will be corrected by the bank and you avoid credit bills that may be beyond your ability.
Take Credit according to Your Needs and Pay Ability
If you don’t need it, why do you take it? Moreover, far from being able to pay? Existing instead creates a problem of bad credit, aka default. So, consider whether you really need two credit cards? Or have to take Alphard credit? Be aware of the extent of your ability to pay. Do not for the sake of pride, you get to print a lot of debt.
Remember, Don’t Forget to Pay this Month’s Installments
From the explanation that has been stated above, in short, bad credit scores due to delinquent credit installments. Do you want to maintain a good credit score? Always pay the installments before they are due until they are fully paid. Credit scores are one of the factors used in credit decision making to minimize the risk of default and ensure that credit decisions are taken objectively.