Abstract:

Indonesian society, nowadays, is facilitated by financial institutions in meeting their consumptive needs. The increase in the number of both consumptive and productive loans should be followed by the process of transferring knowledge about financial management, especially in the lower middle class. Financial understanding is needed to make customers be able to manage finances well and can pay credit according to a specified schedule. Therefore, the researchers in this research test the relationship between the financial literacy level and the credit status of bank customers in Indonesia. The objective of this study is to examine whether financial literacy and financial attitudes have an influence on income level and the good credit payment. Sample used in this study was 320 credit customers at the Rural Bank (Bank Perkreditan Rakyat – BPR). The data analysis method used was complex path analysis to know the causal relationship between financial literacy, financial attitudes, income and the level of good credit payments. The results of the study showed that financial literacy and financial attitudes affected directly or indirectly the income and good credit payments (credit status). Customer income also affected the good credit payment. It indicates that financial literacy and good financial attitudes can encourage customers to get better income to pay their obligations as consumptive or productive credit customers.