The Demographic and Behavior Determinant of Credit Card Default in Indonesia

The purpose of this paper is to analyze the demographic andbehavioral factors that significantly affect the credit card Non-Performing Loan (NPL). This study is carried out to providemanagerial recommendations for controlling credit card NPL. Thisstudy uses secondary data from Indonesia’s most significant privatebank with 100,000 samples of cardholder data. Demographicfactors and cardholder behavior that significantly influence creditcard NPL can be used to improve the credit scoring system fornew cardholders and as indicators for a behavior scoring system forexisting cardholders. This research uses a probability stratified randomsampling technique. Logistic regression uses demographic factors andcardholder behavior significantly affected credit card NPL. Accordingto the logistic regression model, cardholder behavior was more likelyto NPL than demographic characteristics. The number of credit cardsshowed the highest credit card NPL probability.How to Cite:Achsan, Wahid, Achsani, N. A, & Bandono, Bayu. (2022). The Demographic and Behavior Determinant of Credit Card Default in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 11(1), 43-56. https://doi.org/10.15408/sjie.v11i1.20215.