Tips to Keep Your Credit Score Clean: Follow These Steps

Before applying for a loan, there are several requirements that applicants must meet. One of the most important is ensuring that your name does not appear on the blacklist of any financial institution.

Banks use these requirements as part of their risk management process, ensuring that the credit facilities they provide are granted to trustworthy borrowers. To assess this, banks will always check the applicant’s credit history, often referred to as BI Checking in Indonesia.

To avoid being blacklisted and to maintain a clean credit record with a good credit score, here are several practical tips you can follow.

1. Monitor Your Loans Regularly

After paying off a loan, regularly review your credit score and monitor any changes. If your score does not update after full repayment, contact the bank where you took the loan to ensure your payment has been properly recorded.

2. Keep All Transaction Records

Always keep proof of your credit card or loan payment transactions. Written evidence makes it easier for banks or regulators such as OJK to verify your records and help resolve potential issues. With proper documentation, you can avoid paying charges that are not your responsibility.

3. Avoid Paying Only the Minimum on Credit Cards

While making only the minimum payment on your credit card is technically allowed, it can negatively impact your credit score. It may also cause your debt to accumulate over time. If you have extra income, it’s best to pay more than the minimum due to reduce outstanding balances faster.

4. Pay All Installments Before the Due Date

Late payments are one of the most common reasons for a poor credit score or blacklisting. Always pay your loan installments on time to maintain a positive payment history. Consistency in repayment demonstrates reliability and strengthens your creditworthiness.

5. Borrow Based on Your Financial Capacity

Before taking out new credit or applying for a credit card, consider your financial capability and needs. For example, if you plan to apply for a home mortgage (KPR), make sure you fully understand the repayment terms and whether the monthly installments fit your financial situation. Borrow only what you can realistically repay.

Keep Your Credit Record Healthy with a Trusted Credit Bureau

Maintaining a clean credit history is key to long-term financial health and credibility. To stay informed about your credit score, you can use services from a licensed credit bureau such as Credit Bureau Indonesia (CBI), formerly known as KBIJ (Kredit Biro Indonesia Jaya).

As one of Indonesia’s licensed private credit bureaus supervised by the Financial Services Authority (OJK), CBI provides accurate and comprehensive credit information services for both financial and non-financial institutions.

CBI helps its partners analyze borrower risk profiles, determine creditworthiness, and make more informed and responsible lending decisions.