Have You Checked Your Credit Score Through a Private Credit Bureau? Discover the Differences!

Various factors can lead to banks or financial institutions rejecting your loan application, including having a low credit score.

What is a Credit Score?

A credit score numerically represents and ranks an individual or business based on their historical performance in honoring payment obligation as well and the likelihood of them defaulting or not in the future. The higher the credit score, the better the creditworthiness of an individual or business among financial institutions, which results in easier access to better financial services!

Suppose an individual’s credit history is proven good, without any negative records, and with a low-risk level. In that case, they will more likely have easier access to credit from prime lending institutions. The same holds true for businesses.

Given its strong link to financial health, it’s vital for individuals or businesses to stay mindful and honor their payment obligation as well as routinely review credit-related information circulating on their behalf.

President Director PT CRIF Lembaga Informasi Keuangan (CLIK) Leonardo Lapalorcia explains that a healthy credit score ‘opens many doors’. Credit Bureaus and Credit Registries play a crucial role in the service industry and a bad credit record can negatively impact consumer and business capability to access credit or even other general services. While a good credit history and score makes simple and faster accessing prime financial service.

Our Assessment Tools Are Complex, but You Might Pass the Bar!

A Private Credit Bureau (PCB) is an institution that collects and manages data related to an individual’s or company’s repayment history. The processing of this data is used to generate insights about the character and credibility as prospective borrowers and customers applying for loans or services.

Although similar to the Financial Information Service System (SLIK) managed by the Financial Services Authority (OJK), CLIK’s data coverage is more comprehensive and unlike OJK CLIK leverages predictive analytics and the most advanced technologies to develop scores. CLIK is not limited to banking data but also includes transactional data from different industries such as pawnshops, e-commerce purchases, mobile credit top-ups, digital service subscriptions, and utility bills.

PCB plays a role in bridging supply and demand in the financial sector. CLIK is devoted to promoting access to credit for consumers and companies for which limited credit data is available in SLIK. By advanced analytics and having access to many more data points CLIK can effectively provide 85% of the active Indonesian population!

Maintaining Your Credit Score’s Health

In addition to providing credit reports, Credit Bureaus can also help customers maintain a healthy credit score.

Once you have obtained your credit score, you can analyze which areas of transactions need improvement. This way, you can adjust your transaction patterns to return your credit score to an acceptable level.

PT CRIF Lembaga Informasi Keuangan (CLIK) is licensed by OJK and is an affiliate company of CRIF SpA, one of the leading credit bureau in the world with over 35 years of experience. CLIK obtains financial information reported by financial institutions to the OJK through the Financial Information Service System. This information, along with non-financial information obtained from non-reporting financial institutions and non-financial institutions, is collected to create products ranging from credit scores to portfolio warnings. The products produced by CLIK enable institutions to make efficient and accurate decisions involving customers and potential customers through transparency and closing information gaps.

Read also: Building a Better Credit Score: Essential Tips for Responsible Credit Card Use