Before a credit facility is given, the bank must feel confident that the credit given must actually be returned. This confidence was obtained from the results of the credit research before the credit was channeled. Not a few credit applications have been rejected by the bank because the person concerned is considered not to have a credit history or good credit credibility.
Credit research by a bank can be done in various ways to gain confidence about its customers, such as through correct and genuine appraisal procedures. In assessing the criteria and aspects of the assessment remains the same. Usually, the general assessment criteria must be carried out by the bank to get customers who are really worthy to be given, carried out with 5C analysis, namely:
Character is a person’s nature or character
The nature or character of someone who will be given credit really must be trusted. In this case, the bank believes that the prospective debtor has a good reputation, meaning that they always keep their promises and are not involved in matters relating to crime, such as gamblers, drunkards, or fraudsters.
To be able to read the nature or character of the prospective debtor can be seen from the background of the customer, both those that are work background or personal nature such as the way of life or lifestyle adopted, family circumstances, hobbies, and social life.
Capacity is an analysis to determine the ability of customers to pay credit. Banks must know for certain the ability of prospective debtors by analyzing their business from time to time. The ever-increasing income is expected to be able to repay the credit later. Meanwhile, if it is thought to be unable, the bank can refuse requests from prospective borrowers. Capacity is often also referred to as Capability.
Capital is the condition of wealth owned by companies managed by prospective debtors. Banks must examine the capital of prospective debtors in addition to the magnitude and structure. To see whether the use of capital is effective, it can be seen from the financial statements (balance sheet and income statement) presented by taking measurements such as in terms of liquidity and solvency, profitability and other measures.
The financing provided also needs to consider the economic conditions associated with the prospect’s business prospects. The assessment of the condition and line of business being financed should really have good prospects, so the possibility of the credit problem is relatively small.
Collateral is a guarantee given by prospective customers both physical and non-physical. Guarantees should exceed the amount of credit given. Guarantees must also be examined for its validity, so that if something happens, then the guarantee deposited will be used as quickly as possible.
The five points above are closely related to the credit scores of the customers themselves. Because a credit score is a value given to each individual or debtor. The purpose of credit scores is to be used by creditors in determining the ability of debtors or prospective borrowers to fulfill their responsibilities and determine the credit they propose. Credit scores are important, now Giant makes it easy for customers to make payments through the Giant application.
Because by using the payment application in Giant, customers can see first hand the credit score, because the Giant score will increase each customer makes credit payments through the Giant application. Not only credit card installments can be done at Giants, but if you have a car loan repayment you can also directly pay it and it doesn’t take long for a credit score to increase and your digital credibility will get a 1 point rating that is smooth. From now on, be wise in managing finances.