Credit score within the new year… Even this alone will make it’smooth’

Starting this year, a credit score system was introduced that evaluates personal credit with a score ranging from 1 to 1000 that reflects the actual credit status, not the credit rating.

Previously, when receiving a loan or issuing a card, it was evaluated based on the credit rating divided into 1-10 grades. The’credit score system’, which will be introduced from this year, has a perfect score of 1,000, and the higher the score, the higher the credit. When the system is changed to a credit score system, individual credit bureaus (CBs) provide only credit scores, and financial companies conduct their own credit risk assessments based on risk strategies, etc. It is expected to be able to lower the’threshold effect’. It is possible to escape from the’sorrow’ that was limited by loans due to the difference in credit rating due to the slight difference, but meticulous management is required to get a high score even for one point.

◆ The old saying that your credit rating is low just by looking up

‘It is said that credit score is low just by looking up the credit score.’ This is a common concern when looking up credit score.

However, it is not true that just looking up your credit score will hurt your credit rating. Experts advise that consistently searching and managing your credit score will help you increase your creditworthiness. In recent years, credit ratings can be easily searched through fintech applications such as Kakao Bank and Bank Salad. Mr. B, a second-year employee who was initially rated 6 (663 points), steadily inquired and managed his credit score through the Toss app, and now he received 784 points.

If you are a `Thin Filer (a term for a person who has little financial transaction information)`, you should first create a main bank and accumulate transaction results in your own name. This is because you can increase the credit score of the bank just by selecting the main bank and using it consistently. It is helpful for credit score to set the main bank and collect the transaction results such as salary transfer, payment of various utility bills and card payments, and automatic transfer.

◆ One check card… Over 300,000 won steadily for 6 months

It is important to use one card consistently, too. It is good to use the check card continuously for more than 300,000 won for more than 6 months. According to the evaluation items reflecting personal credit scores disclosed by the personal credit rating company Korea Credit Bureau (KCB, All Credit) and Nice Rating Information, the proportion of credit transactions including the’card consumption pattern’ has increased. Only credit card performance was reflected in the existing credit rating, but as the credit score system was changed, debit card consumption patterns were also reflected in the score.

If you have to use a credit card, we recommend spending around 30% of the limit. If you fill the limit and use it, it may adversely affect your creditworthiness. Credit card installment transactions are, after all, debt. The installment period should be as short as possible. In particular, delinquency is fatal to your credit score even for a single day. Experts advise avoiding cash services and credit card loans as much as possible. Low creditors are encouraged to seek help from the government. You can check customized loans that can be used by low-credit people, such as Sunshine Loan and Siidol Loan, through the Financial Supervisory Service’s General Finance 1332 site.

◆ Just submitting various utility bills records `11 points` ↑

It was not easy to raise a credit rating if you are a freshman or have insufficient financial transaction history. However, you can raise your credit score simply by submitting’non-financial information’ that was not included in the credit rating agency’s credit rating. If you submit non-financial information such as information about communication expenses, national pension, health insurance, etc. from the Fintech app, you can utilize the’credit score increase’ service that reflects it in your credit score in real time. In the Fintech app, simply by authenticating the official certificate, the health insurance payment confirmation, payment details, and income amount verification documents are automatically submitted to obtain additional points. C, a real second-year employee, received 11 credit points as an additional point through authentication with a public certificate using the Kakao Bank app.

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