The rapid progress of transportation technology responds to manufacturers and distributors of motor vehicles competing extra. Purchasing on credit is one of the positive solutions to meet the current demand for consumer vehicles. This also makes the financial institutions to conduct a series of credit analysis of credit applications for prospective consumers to anticipate the amount of credit risk that will occur.
Credit Scoring is one of the mediations
In analyzing the feasibility of potential consumer credit facilities. In this study, there are seven test variables used in this study, namely, approval variables, advances, OTR prices for interest on loans, payment tenor, vehicle conditions, and gender. The results of the research that were carried out turned out to only have four variables that influence the decision on the approval of credit facility eligibility, namely the down payment variable, OTR price, loan interest, and payment tenure.
Although the public is facilitated by special offers with affordable advances, the company also carries out a series of credit analysis processes for each consumer who submits a loan application before approving it. The series of processes begins with the vertel process, namely the existence of customer application documents to the dealer, followed by bringing surveyors to the homes of each consumer to request customer document requirements. Then it will be followed by a credit analysis conducted by the company. The credit analysis process in the process requires time that is not short.
Motor vehicle credit business and the limitations to analyze consumer credit
Documents per day encourage the company to innovate and improve the existing credit analysis process. The process innovation and improvement referred to is by trying to make a credit scoring model (Credit score) that is not yet owned by the company, then the model will be used to help provide the results of a proper credit worthiness analysis of applications for consumer credit per day.
Credit scoring obtained will be useful for the company in determining the eligibility of credit, for example, consumers want to apply for car loans, consumer credit scores will be seen more precisely and faster. The company’s decision to accept or reject a consumer credit application is based on a credit analysis or credit score as the Giant Score provides based on the document forms that have been filled out by potential customers.
The form contains all the detailed information about the personal prospective customer, starting from the name, marital status, income per month, up to the expenses that must be spent by prospective customers each month. In many cases of scoring systems, with a high value of scoring will reduce the value of risk, and the crediting company that provides credit services can determine the calculation limits for accepting or rejecting consumer credit applications based on the value of risk owned by the consumer’s digital credibility.