Your loan application was rejected because it turns out you have a bad credit history or credit history? Or was it rejected because it had no historical credit before? If you have a case like this, maybe you can start checking your credit score.
One of the main reasons why potential borrowers fail to obtain a loan is Historical Credit. As usual, historical credit will match your credit score. The higher the credit score you have, the sooner your bank or online Non-Credit Lending will approve your application. Your own credit score is the primary record used by banks, online Non-Credit Lendings or other Financing agencies to determine your loan application eligibility.
This credit score you can search for your loan history
Payment cycle, number of delays and how much credit you have. This data is also linked to Bank Indonesia through BI Checking which is part of Bank Indonesia’s Debit Information System (SID).
However, from January 1 of this year, the service began transitioning its management to the Financial Services Authority (OJK) through the Financial Information Services System (SLIK). So, if you are wondering why your loan application was rejected or even accepted but get a higher interest rate, you should try checking your credit score.
To check it, you can access OJK or BI Checking. Here are some steps you can take to improve your credit score while getting a loan after getting rejected. Let’s check it out!
Check the data in BI Checking or SLIK
You can do this through Bank Indonesia or the Financial Services Authority’s website, or come directly to their office. Well if it turns out that your credit performance is poor even in the blacklist category, you are required to pay for your entire installment first. After that to speed up the process, you can report the debt settlement to the nearest BI office immediately. Well, Good Finance, don’t get into the system blacklist by BI Checking, because to recover, the delinquent records can take up to 24 months. Try to always pay your bank bills or Non-Credit Lending installments on time. That way, your credit score will improve.
Use a credit card
Aside from poor credit performance, there are other possible reasons why a potential borrower may be denied a loan application due to a lack of historical credit. To prevent this from happening, you can apply for a credit card at your bank. However, you should be able to use your credit card wisely, friend, so that you can have a good credit rating, paying the bills on time every month.
Take the number of installments that you can afford
Ideally, the maximum amount of a debtor’s loan should be 30% of your earnings per month. If your installment is over 30%, then your credit score will decline. Because at a rate of over 40%, the Bank will consider you a risky customer. So, before picking up a new installment, first pay for the previous installments, my friend.
When your application is rejected, do not apply directly to the same bank again. You may want to take a few months to improve your credit score and pay off the previous installment. Discussing your credit score is far from commitment and discipline. If you are disciplined to pay your bills or installments on time, your credit score will be well taken care of.