Do you often miss paying your loan installments? Be careful, this could harm your credit score and make it harder for you to secure future loans! But don’t worry, there are ways to fix it. Check out these tips to improve your credit score:

What is a Credit Score?

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A credit score is a 3-digit number (e.g., 150–600) that reflects your creditworthiness as a borrower. It’s calculated based on your financial history: whether you pay your bills on time, how much credit limit you use, and how long you’ve had credit accounts or loans.

The lower your credit score (e.g., close to 300), the harder it is to get approved for loans. Why? Because the credit score serves as a key indicator for banks or financial institutions to evaluate your reliability as a borrower.

For example, Deni wants to take out a motorbike loan at a bank. However, because he often missed laptop installment payments with another financial institution, his credit score dropped to 450. As a result, the bank considers Deni high-risk and hesitates to approve his loan.

So, make sure to maintain a high credit score! A good credit score makes loan applications smoother and faster.

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Important Note: Don’t confuse a credit score with BI Checking (now known as SLIK OJK).

SLIK OJK: A system that tracks your loan status on a 1–5 scale (1 = current, 5 = default). It’s more like a “report card” for your past loans. Learn more here.

Credit Score: A predictive 3-digit number that indicates how “safe” you are for future loans.

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How to Check Your Credit Score

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There are two ways to check your credit score: free or paid. Here’s how:

1. Check Using Modern Financial Apps (Free)

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Use apps like SkorLife or other modern financial platforms to check your credit score for free on your smartphone. These apps allow you to:

• View your credit score in real-time.
• Get personalized tips to improve your credit score.
• Monitor your overall financial health.

Additionally, when you apply for the Honest Card, you automatically get your credit score checked for free. Your credit score information will be sent via WhatsApp, regardless of whether your application is approved or not. If approved, you can enjoy real-time transaction tracking features that make it easier to manage your finances and build a better credit score. Learn more about Honest Card features here.

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2. Use Services from Credit Bureaus (Paid)

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For a more detailed report, you can use paid services from credit bureaus like MyIdScore by Pefindo Biro Kredit. Here’s how to check:

1. Visit myidscore.id.
2. Click "Create Account" and fill in your personal details as per your ID card. Ensure all data is accurate.
3. Choose a service package based on your needs (fees include verification, transfer, and credit score reporting).
4. Complete the verification process by taking a selfie using your phone or laptop camera and uploading a clear photo of your ID card.
5. Once completed, you’ll receive a comprehensive report of your credit score.

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How to Build a Good Credit Score

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Want to build a solid credit reputation? Here are some tips on how to improve your credit score:

1. Start using a credit card

Getting a credit card is the first step to building a good credit score. Why a credit card? Unlike typical bank loans, you can use this payment facility more frequently, which means more accurate and comprehensive data is collected to build your credit score.

Many people are hesitant to apply for a credit card because the process is known to be complicated and lengthy. However, you can now apply for a credit card online in today's digital era. Honest credit card is one provider you can try. You can apply through the Honest app in just 5 minutes with your ID.

2. Pay installments on time

One of the most important things in building your credit score is paying your installments on time. If possible, don’t just pay the minimum on your credit card; pay it off entirely before the grace period ends to avoid accumulating interest.

This is crucial because your credit score largely depends on your discipline in repaying loans. The more disciplined you are in paying bills, the higher your credit score will be.

3. Use auto-debit features

To avoid forgetting, you can also pay your credit card installments or other bank loans using an auto-debit system. For instance, if you have a mortgage installment of Rp2,093,000, you can let the financial institution automatically deduct the amount from your savings account every month instead of going to the bank to pay it.

4. Avoid using credit for unnecessary purchases

These days, there are many types of credit. Besides bank credit like credit cards, personal loans (KTA), and mortgage loans (KPR), there are also paylater services and online loans (pinjol). To keep your credit score in good shape, use these payment options only for essential items you truly need. For example, buying a new laptop because your old one is malfunctioning and you need it for school, etc.

5. Don’t overuse credit cards

Having too many credit cards can be a problem too. Apart from the high annual fees, managing multiple credit card payments can become a hassle. One or two credit cards should be enough, especially if the card you’re using has a high limit of up to Rp100,000,000 and can be used almost anywhere, like Honest. Try to keep your usage below 30% of the total limit.

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What if You’re Already Behind on Payments?

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So, what should you do if you’re already behind on many payments and are struggling to pay them off? If you are in this situation, immediately contact the bank or the credit service provider. If the bank sees that you genuinely intend to repay your debt, they might offer relief, such as an extended installment period or interest forgiveness.

Once your debt is paid off, you can then visit the OJK to request a BI Checking clearance by bringing a debt settlement letter from the bank. This way, you won’t have to worry about your next loan application being rejected.