Definition of BI Checking – In this day and age, surely many people need additional funds to be able to fulfill their daily needs, such as buying a house, vehicle, or other needs.
Therefore, you could say borrowing money from a bank might be a solution that can be considered. Now, to be able to apply for credit to a bank, the BI Checking process must be carried out first.
Many people don’t know what BI Checking is? How does it work? The following is information about what BI Checking is and how it works. Listen to this explanation until the end, Sinaumed’s.
Definition of BI Checking
Previously, there were 3 types of credit including Unsecured Loans (KTA), Home Ownership Loans (KPR), and credit cards. If you make an application, then you will go through the BI Checking process, which means checking historical Individual Debtor (IDI) information, which records the smooth or bad credit payments you make.
This incoming information is in the debtor/SID information system which has now changed its name to the Financial Information Service System (SLIK) due to a change in supervision from BI to the Financial Services Authority (OJK).
Information on the credit history of banking or other financial institution customers is called a debtor information service (iDEB). Banks and a financing and financial institution that have access to debtor data, and are obliged to report debtor data to the Debtor Information System (SID).
BI Checking and Historical IDI which will store all debtor identities, owners, facilities for providing funds or financing received, collateral, guarantor, and collectibility. Many kinds of information from BI Checking can be accessed by members of the Credit Information Bureau every 24 hours per day.
Get to know a little about OJK SLIK
As of January 1 2018, debtor status is no longer in the BI Checking system. This is because the function originally owned by BI Checking has now shifted to OJK with the Financial Information Service System or what we call today as SLIK. This system will continue the tasks of Bank Indonesia related to the debtor’s credit status. Similar to BI Checking, SLIK also contains important information about the debtor’s credit history, payment installments, and collateralized assets.
The difference between BI Checking and OJK SLIK
When viewed in terms of tasks and functions, there is actually no significant difference between the two. The only difference is the institution that oversees it. Initially, BI Checking which was directly supervised by BI is now being forwarded to the SLIK system which is supervised by OJK.
With BI Checking or SLIK, an individual or an institution can check the credit quality using a service that is often referred to as the iDEB service or Debtor information. Just like BI Checking, SLIK also has the goal of facilitating banks in conducting screening and minimizing debtor default status.
Advantages of BI Checking and OJK SLIK
There are several points of advantage that can be obtained from the BI checking/ SLIK OJK credit status monitoring system, including:
- Can be used as a process of analyzing one’s credit capabilities.
- Can minimize the risk of one’s default in the future.
- Can be used to give reputation value to the debtor.
- It can be used by debtors to improve their credit status, which will later be useful in making it easier to obtain loans from a bank or other financial institution.
Functions of BI Checking
This BI Checking is very important to do because in order to find out the credit history to find out the collectibility status of the debtor. Whether the debtor can pay off all the credit given or not. In addition, BI Checking can also prevent bad credit from occurring.
Apparently, there are several functions carried out by BI Checking in the Indonesian banking world, including:
● First
It is very clear from the function of this integrated information system is to collect all data on debtors who have applied for credit to banks or other financial institutions. As a database that is managed directly by official state financial institutions, the confidentiality of information is guaranteed and access to this information has strict regulations.
● Second
As a reference for assessing a bank or financial institution when it has responded to a credit application. Because the debtor’s history can be seen very clearly, financial institutions can assess whether this prospective debtor has the credibility needed when getting a loan.
● Third
As a basis for analyzing credit applications that have been submitted, and analyzing the ability of a debtor to return the debt he has. Starting from discipline, the amount of money borrowed, the ability to pay, and others.
BI Checking Credit Score
When applying for credit, debtor customers will be given a score based on collectibility records. Here are the details of the scores:
● Score 1
Current credit, which means that the debtor always performs his obligations in paying installments every month and the interest is paid off without even being in arrears.
● Score 2
It is a DPK credit or can be called a special mention credit, which means that the debtor is counted in arrears on credit installments for 1-90 days.
● Score 3
Non-current credit, which means the debtor is counted as not paying credit installments for 91-120 days.
● Score 4
Doubtful credit, this can happen because the debtor has been counted in arrears on credit installments from 121-180 days.
● Score 5
Bad credit, which means the debtor is in arrears on credit installments for more than 180 days.
If a prospective debtor has a score of 3, a score of 4, and a score of 5, then he will be blacklisted by BI Checking, and the bank assesses that the prospective debtor has a score that is experiencing problems or is often referred to as a Non-Performing Loan (NPL).
The NPL indicator is very useful for banks, because it can measure how healthy a bank is. Because the NPL makes the bank’s capital continue to decrease, so it will not get the desired return.
Then, for a score of 2, the bank considers it something that still needs to be monitored, because debtors may experience NPLs. For debtors who get a score of 1, the bank will immediately process the credit they want. Debtors who get a score of 1 are highly favored by the bank.
However, the best way to get a good credit status is to pay your obligations on time. However, to improve your bad credit status, you can come directly to Bank Indonesia with a letter of explanation from your bank to arrange BI Checking status if all debts have been paid.
Tips for Safe BI Checking
If you have bad credit, then your reputation will not be good in the BI Checking records, including if you want to make a loan through a banking institution it will be difficult.
In the problem of bad credit, there are also many problems in matters of property ownership. This concern is also growing, especially among millennials.
How to View BI Checking Status Offline
The public can also view this information to see their credit history. The following is the procedure for viewing the status of BI Checking offline at the OJK office
- Prepare a KTP for Indonesian Citizens (WNI) or passports for Foreign Citizens (WNA). For debtors who already have a business entity, they are required to bring a photocopy of the identity of the business entity and its management.
- Come to the OJK office to fill out the SID application form.
- If the documents are complete, the OJK officer will print the IDEB results.
How to View BI Checking Status Online
Apart from looking offline , you can also see the status of BI Checking online. Here is the procedure:
- Visit the SLIK application page
- Fill in the form and the queue number
- Scan and upload the required documents, such as KTP for Indonesian citizens and passports for foreigners. For business entities, it is mandatory to attach management identity, NPWP, and deed of company establishment.
- Wait for the confirmation email from OJK
- The data will be verified, then the applicant will receive a notification from the OJK in the form of an online SLIK queue no later than D-2 from the queue date.
- Then, the customer prints the form, then signs 3 times
- Scan the signed form again to the WhatsApp number listed in the email along with a selfie photo by showing your KTP.
- Next, there will be verification, continue via WhatsApp and make video calls if necessary.
- If it passes verification, IDEB SLIK results will be sent via email.
Documents to Request an IDeb at the OJK Office
If a debtor comes to OJK with supporting documents and fills out the debtor’s request form. The SLIK service serves three types of debtors to be able to request IDeb data, as follows:
1. Individual Debtors
- Photocopy of original identity using KTP for Indonesian Citizens (WNI) and passports for Foreign Citizens (WNA).
- If authorized, complete the original power of attorney with signatures and identity documents of the recipient of power in the form of KTP for Indonesian citizens and passports for foreigners.
2. Debtors who have passed away
Photocopy of original identity by showing documents in the form of identity of parties who have family relations or heirs of the debtor in the form of ID cards for Indonesian citizens and passports for foreigners.
3. Business Entity Debtors
- Legalized photocopy of business entity identity and management identity along with the original identity of the director of the business entity.
- TIN of business entity
- Deed of establishment of business entity
- The final articles of association that make up the composition and management of a business entity.
- If authorized, complete the document in points 1-4 with the original power of attorney in the form of a signature and the identity document of the attorney in the form of a KTP.
How to Read BI Checking Information or SLIK Debtors
The debtor information form above contains complete information regarding search information, main data of the debtor, owner or manager, summary of facilities, credit or financing, collateral and guarantor.
Information about this SLIK debtor is confidential personal data and may not be disseminated. Therefore, we can be sure that the information was collected by ourselves. For clearer information, you can view SLIK or BI Checking debtor information on the ojk.go.id website .
How to Clear Names in BI Checking
Weaknesses from BI Checking or Historical IDI if the debtor gets a score of 3 because there are installments in arrears that can interfere if you want to apply for credit. However, you don’t need to worry, because BI Checking can make a bad score clean or also called bleaching by doing the following:
- Credit installments or debts that are not paid / in arrears must be paid off immediately. Because at any bank you apply for credit, it is certain that you will not get approval because your score or record is still bad.
- After paying off the credit or debt installment arrears, look at the existing BI Checking and see if the score has changed. If there have been no changes, then you can submit a complaint to the bank where you applied for credit.
- Bring a letter in the form of an explanation or clarification from the bank where you applied for credit, then confirm to the OJK that you have completed your credit obligations. Then wait until the BI Checking is completely clean.
How to Avoid Bad Credit
For those who have no experience in managing finances well, sometimes they still cannot manage loan money. Then how to avoid this bad credit so that the BI Checking status remains safe?
1. Don’t apply for a credit card
If you have just applied for a mortgage for less than two years, your credit score will still be positive. Even so, don’t try to add to the loan using a credit card.
This is because having this credit card will trigger the owner to shop for consumer goods. The more the number of installment bills per month, the greater the risk of bad credit that you will experience and your BI Checking status will be at stake.
2. Pay bills on time with the maximum amount
One of the customer habits that triggers bad credit and affects the status of BI Checking is being late to pay monthly bills. Not only mortgage installments, but also electricity bills, telephone bills, and others.
Get used to paying all monthly bills on time with the maximum amount you can afford. Take advantage of the reminder / reminder application on your cellphone.
3. Avoid the minimum payment on a credit card
Many people often use a minimum payment or often referred to as a minimum payment to pay credit card bills and that’s actually okay. However, are you ready to pay the price? As a result, yes in the form of BI Checking. There is no guarantee that your debt will not accumulate, so you will have difficulty paying credit card bills.
4. Make a Target Budget
Start changing your old habits of spending unlimited money into someone who makes a budget for spending every month in a disciplined manner. Then, track these expenses for every transaction that goes in and out of money in your account.
Therefore, if you track your monthly expenses, you will be able to keep your BI Checking status safe.
5. Make payment in cash
Often you make transactions using a debit card or credit card. A study states that a person tends to spend around 18% more money when using electronic money. So, get used to paying using cash and start thinking twice about using money already stored in your wallet.
6. Take credit according to your needs and abilities
Lots of people nowadays are very concerned with a luxurious lifestyle, so spending is more than income, the easiest option to get fast money is through a credit card. Remember, you have to be aware of the limit where your ability to pay. Lower your prestige, lest you score a lot of debt.
Thus the discussion on BI Checking, starting from the meaning of BI Checking, to the BI Checking credit score. Hopefully all the discussion above can add to your insight.
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Author: Dennis Tan Kurniawan