Determinants of Customer Credit History Evaluation

Abstract

This study investigates how borrowers’ credit history evaluations are influenced by individual attitudes, financial literacy, employment status, and loan structure using data from 9,181 borrowers of “A” bank in 2023. Quantitative analysis, disaggregation, and satisfaction survey data were employed. The findings reveal that salary loans – particularly online loans – carry the highest risk, significantly affecting the bank’s risk provisions. Key factors such as collateral type, employment sector, age group, and co-borrower participation were also shown to strongly influence loan quality. Additionally, job stability and personal financial responsibility emerged as critical determinants, highlighting the need for coordinated efforts from banks, borrowers, educational institutions, and policymakers.