How To Do A Good And Correct Credit Survey?

How To Do A Good And Correct Credit Survey? – What comes to your mind when you hear the terms banking or credit? Money, of course. Talking about credit, of course, is the goal of the banking itself, where the target of lending is third parties or the public or debtors. Even though the community is the main target, not all credit applications have been approved by the banking sector. 

There are many factors that need to be considered, so a survey is needed to collect data on prospective debtors whether or not they are eligible to receive credit. There are two types of surveys that are commonly carried out, namely by telephone and directly visiting the debtor’s residence, or place of business.

How to Do a Correct Credit Survey

Here are several ways to do a good and correct credit survey, including:

1. Survey objectives

The first step to take is to determine the objectives of the survey yourself. Among them is collecting the necessary information based on the 5C principles, so that prospective customers can be analyzed properly so that the banking sector can make good decisions. In addition, this survey also aims to re-confirm the initial information provided by prospective customers, whether it is in accordance with the actual conditions or not.

That way the surveyor in charge of conducting the survey must visit the residence or place of business of the prospective customer, and conduct interviews with both the prospective customer and neighbors of the prospective customer. In addition, the purpose of the survey is also to determine the amount of ceiling that can be disbursed to customers.

In this case, the surveyor will usually explain the amount of the loan and the bill fees that must be paid later. Then the surveyor will ask which ceiling if the customer is able to pay it. Do not choose a large bill that is high, but in the middle of the road, you actually strike. This of course will make it difficult for the surveyors to do their work later.

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2. Surveyor’s functions and responsibilities

You could say that the surveyor is the spearhead of the collection of information on prospective customers which aims to help the analysis party make good decisions.

Therefore, apart from collecting data, the surveyor also has the responsibility of verifying and checking the accuracy of the information data obtained from the customer, is responsible for the process of completing pending memos, and is responsible for or the quality of the survey results (the accuracy of the data and information presented). Now there is also a surveyor application that makes it easier.

Read Also: Roles and Jobs of Credit Surveyors

3. Interview

This is the most important part of the survey. The interview is verbal interaction between two or more people to achieve certain goals. Usually, interviews are conducted by surveyors by digging up information about the creditworthiness of a prospective customer application.

4. General field survey parameters

Things that must be considered when conducting a survey are environmental conditions and the customer’s residence. Has he lived there for a long time, ownership status, number of residents, condition of the house, and the environment. In addition, pay attention to the place of business.

Verification is also about the length of the business, monthly turnover, the status of the customer’s position at the workplace, the number of employees, and so on. Both are very important to do to obtain the information needed, such as the correct location of the residence, the level of welfare of the prospective customer, the cost of living or household burdens, and so on.

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5. Qualifications of a surveyor

To be a good surveyor requires loyalty, honesty, and integration. Where always prioritizes company needs rather than personal needs, is honest in collecting data and information from customers, and acts independently so that the survey results are not influenced by other parties.

Not only that, but surveyors must also have tenacity and observation skills, have good communication skills to maintain good relationships between customers and the bank. Because after all the image of a company or bank also depends on how the surveyor communicates with his customers. In addition, surveyors also need to understand the work area well, so that when working or surveying can save time because they already know and know the location where the customer is located.  

Fraud by irresponsible surveyors

Currently, there are a large number of multifinance companies and financial service providers offering similar services so that the level of competition for customers is becoming more stringent than before. In the midst of these conditions, financial companies have to go the extra mile to get as many customers as possible. This is due to the company’s profits that depend on the quantity of quality customers.

Thus, financial companies compete to find new ways and methods that can attract more potential customers. While most of these methods are legal, some people like irresponsible credit surveyors are willing to resort to illegal means to increase profits. Of course, this action will harm the credit applicant and the credit service provider. These unlawful acts include data manipulation, extortion, and other methods, as well as possible data breaches from the requester. This can lead to misunderstandings between the borrower and the credit service provider.

Here are the most common frauds conducted by irresponsible surveyors to increase profits illegally for their company’s sake or for personal gain.

Data manipulation

The activity of manipulating data is the most popular thing done by irresponsible credit surveyors, either to increase company profits illegally or for personal gain. This can be fatal because it will clearly show a significant difference between the results in the field and the manipulated data, so that if left unchecked, this action can lead to illegal debt. In addition, this illegal debt is likely to be used as a tool to extort credit borrowers.

Debt markup

The debt markup is the difference between the lowest bid price of an investment and the price the customer must pay for the investment. While it is legal for creditors to profit from this markup, irresponsible credit surveyors may take advantage of this markup illegally. Therefore, companies must be observant and careful about this action. Because in addition to harming the borrower, trust in the company and its reputation can decrease in the eyes of the borrower.

How to monitor the surveyors’ work

Along with the rapid development of technology, tracking the actions of responsible surveyors can now be done with the surveyor application. This application will assist credit service providers in all credit financing activities, including monitoring the work of credit surveyors.

Credit surveyors who are not responsible by manipulating data for their personal gain will ultimately harm the company. In addition, credit borrowers will also be disadvantaged because the credit they receive is not in accordance with what they expect.

Therefore, AdIns Mobile develops an application, namely Mobile Survey, which can be used to effectively control, manage, and monitor surveyors in the survey process. This surveyor application can be used without an internet connection, a geolocation camera, and you can see their activity from the monitoring dashboard in real-time.

Definition and how to calculate credit score

Credit score is a scoring system used by banks and other financial services that serves to determine the eligibility of prospective customers or customers in applying for credit. Financial service providers can determine a credit score based on how the customer’s transaction history, financial condition, type of work, home status, family dependents, and more.

The lowest credit score usually starts from 300, and the highest number is 850. If the customer or borrower has a low score, this customer can be considered as someone who often makes customer credit payments late and is undisciplined. Of course, this score will be considered by the bank in the future, so that it can make it difficult for customers to get new loans.

A variety of different ways and methods are used to calculate a credit score. This method is usually based on numerical calculations and a weighting system to assess various types of criteria. The details of how the calculation and the formula for calculating the credit score are known only to the service provider itself. The accuracy of the results of the credit score will depend on the criteria and suitability for the purpose of the credit. In addition, the tools and methods used will also affect the results of the credit score calculation.

The following is the division of credit categories based on their score:

• Score 1 (Exceptional), which is a borrower or customer who is never in arrears and always pays credit loans on time until the loan is paid off.

• Score 2 (Very Good), namely borrowers who are in arrears on credit payments for 1-90 days.
• Score 3 (Good), namely borrowers who are in arrears on credit payments for 91-120 days.
• Score 4 (Fair), namely borrowers who are in arrears on credit payments for 121-180 days.
• Score 5 (Bad), namely borrowers who are in arrears on credit payments for more than 180 days.

Many things can affect the high and low credit score. However, below are the five main factors in calculating a credit score according to FICO:

Payment history: The history that is often used by lenders is 35% of the credit score and timeliness of the borrower in paying credit.

• Credit utilization: This calculation is usually derived from 30% of the credit score and it refers to the amount of money or property owned by the borrower. This considers the proportion of money owed to the total available credit.
• Credit history duration: This history duration score is 15% of the credit score. The longer the credit history, it can be estimated that the credit is of low risk.
• Credit type: The value is 10% of the credit score. This shows how many types of credit the borrower has, for example credit card installments, house installments, and car payments.
• Number of new credits: The last is the number of new credits which is around 10% of the credit score and shows how many new credit accounts the borrower has. If the borrower takes out a lot of credit loans, this can be a high risk for the lender or creditor

Those are some explanations for how to do a good and correct credit survey. Be a wise surveyor in collecting customer data so that later analysts will make the best decisions. With a fast and hassle-free credit process, it is a satisfaction for its customers. 

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