Credit history is one of the important documents that must be included when registering something, including when applying for loans to the bank, for example such as ABC, IKR, KKD, etc. Currently, to apply for a loan, we only need to apply for a Credit history as a first step, and loans can be obtained immediately. The ease of applying for a loan is often used by borrowing the ID card of the closest people, even though this step is not appropriate, especially for those of you who borrowed their Credit history.
There are many factors that make someone forced to borrow someone else’s ID card to apply for a loan. Here are some examples:
- Your friend wants to apply for ABC because it requires money to finance certain needs. But they feel that the fixed income that he gets will not be enough to meet the requirements of the bank in order to get a large loan. Therefore, they ask your help to apply for a loan, they promise to pay the remaining installments regularly every month to your account.
- Your uncle lives in Palembang and plans to buy a car. But because of the high price differences between Jakarta and outside Jakarta, he took the initiative to buy a car from a dealer in Jakarta. Of course, only Jabodetabek area ID card holders can buy a car at the dealer , and because you are the owner of the Central Jakarta ID card, he asks for your help. Just like the first example, your uncle promised to only borrow your Credit history and apply for the KKD to pay all the DPs and installments for the next few years on a regular basis.
The similarity of the two examples above lies in the moral encouragement of someone to help the closest people, in this case friends or family. Helping other people is very good, but for debt problems especially if the Credit history is borrowed by a friend to apply for a loan, of course you have to think twice. Why so?
Here Are 4 Reasons Why You Should Refuse If A Credit history Is Borrowed To Apply For Loans
1. Payment of Stagnant Installments can Affect Your Historical IDI
Although this is not desirable, the case that often occurs when a Credit history is borrowed by a friend is that the borrower does not pay the installments regularly.
Delays in paying installments can affect the score on your Historical IDI. Usually the data will be immediately updated by the bank to Bank Indonesia when you are late making payments. Of course you don’t want your name to be recorded badly in historical IDI records, right?
2. If you are less fortunate, it is you who must pay the remaining installments
The worst case is when a friend / family who borrows your Credit history is actually absent from their obligations. Not a few people who even fled and charged all debts borne by people who borrowed their Credit history.
The bank usually does not want to know about who is applying for a loan, so usually they will still hold the person who registered his name (in this case you) to pay off the debt. So, you are the one who must pay the remaining installments.
3. You will also be pursued by the Debt Collectors
One of the effects when your Credit history is borrowed and is not responsible for paying is that you are pursued by debt collectors. Just like the points in number two, the bank certainly doesn’t want to know how the lending process takes place between you and your friends / relatives.
The bank will still demand accountability from the party registered with the name and Credit history, so that debt collectors will also visit the registered billing address. Like it or not, it is your home or office address that will be approached. Very annoying, right?
4. Damaging Friendship / Brotherhood Relationships
When a Credit history is borrowed by a friend or friend to borrow a friend, and the payment is stuck, of course there is a relational impact that is felt. Your friendship or brotherhood relationship will certainly have a pretty bad effect, initially that’s fine because based on trust can lead to a fight. Therefore, it is better to think twice before deciding to borrow a Credit history to apply for a loan by a friend or relative.
What is the Right Way to Protect Yourself When a Credit history Is Borrowed to Apply for a Loan?
1. Find Out Why They Can’t Get Loans
Of course there is a reason why your friend or relative chooses to borrow your Credit history when applying for a loan. For some cases, for example, because the domicile in the Credit history does not adequately support the requirements, there are also those who are indeed in the status of Historical IDI that has entered collectability 5 (blacklist). If indeed that’s the reason, you should be able to be more confident not to lend your ID card.
2. Give Cash Assistance
Another solution that you can do to protect when a Credit history is borrowed to apply for a loan is to provide cash assistance as needed. Of course you also need to be aware from the start, when lending money to friends / relatives in need, you should not expect too much of the money to come back.
This is considering the financial condition of those who at that time needed a loan. If it is positive to help, you should see if there will be an initiative from the borrower to return your money.
3. Help Them to Find Other Options in Getting Loans
If you are reluctant to provide personal assistance, you can still help them by finding other options. When a friend / relative has difficulty applying for a loan to the bank, the alternative loan that can be taken is to use a multi-purpose company (multi).
Usually companies like this do not really care about historical IDI (if the loan nominal is not too high). Requirements that must be completed also include Credit history. However, usually a loan through a leasing / multipurpose company will use collateral, so indeed your friends / relatives should be more careful in choosing the conditions that further relieve them.
4. If You Are Sure They Are Reliable, At Least Prepare A Credit Agreement Letter
Basically we absolutely do not recommend you to lend ID cards to friends / relatives who want to apply for loans. But if you are forced to, as the validity of the agreement you and your friends / relatives should make a credit agreement signed on the stamp.
This is useful if in the event of a default and want to be brought into legal channels, the letter can be used as evidence in the trial. Next, you also have to check with the bank, because not all banks will acknowledge such credit agreement letters.
If only there is arrears, of course your name will be blacklisted by Bank and you too, which will be pursued by debt collectors. The loss of your name in the BI Historical IDI can certainly have a bad impact if you want to apply for a loan for an emergency fund.