Credit scores can be obtained from your financial history, especially credit. If you are smooth and late paying your credit, then your credit score will be high. Conversely, if your credit payment is bad, you will get a low credit score and consequently the bank will refuse your next credit application. In Indonesia, the customer’s credit history is managed by the Financial Services Authority (OJK) through the Financial Information Services System (SLIK), whereas credit scores in Indonesia are provided by Credit Information Management Institutions or private credit bureaus and others.


Credit score

Credit score

The use of credit scores in the United States is almost the same as in Indonesia, namely to determine whether a person is eligible for credit from banks. However, credit score management is not coordinated by the government, but by private companies.

Magnitude credit score (Giant score) obtained from credit payment history (banks, credit cards, car loans and others), the number of account ownership and value, personal records (bankruptcy, lawsuits, taxes, etc.), and several other aspects. Not only is used for credit assessment, but the Giant score is also used for the recruitment and promotion of employees as well as the consideration of the apartment owner in determining his tenant occupancy.

A low credit score gives an indication of the possibility of a credit application being rejected. Here are a few tips on increasing your credit score:

1. Be punctual in paying every bill
2. Reduce debt
3. Have fixed assets and income
4. Avoid applying for credit simultaneously

Why does a credit score matter so much? The answer is simple. A credit score is an indicator of your eligibility in undergoing credit as seen from a credit history that includes all credit transactions that you have ever done with any financial institution.


Apply for a credit card at a bank

Apply for a credit card at a bank

Now, in addition to conducting surveys and other provisions, the bank will also see your credit score that can be obtained from the Financial Services Authority (OJK). OJK is an authorized party to issue Individual Debtor Information (IDI) which contains your financial track record, especially in credit matters.

From there, the bank will look at your credit score to determine whether you deserve the credit product they have. This is done to avoid credit problems that often occur because the debtor is unable to pay arrears that continue to run in accordance with the pre-determined tenure.

Therefore, it is very important for you to continue to oversee your credit activities so that credit scores do not drop dramatically to the lowest credit score group, namely Collectibility 5 aka bad credit. At the very least, you must be in the Collectibility zone 2 so that you can more easily move up to the Collectibility 1 zone as your digital financial credibility. However, don’t forget to use your credit wisely so that you don’t get into debt arrears on those who have the credit product.

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