What is a credit score system?
Even until 2020, I had a credit rating inquiry. It was composed from grade 1 to grade 10, and it meant that the closer to grade 1, the better the credit, but in 2021, it was abolished and changed to a new credit score system. It is said that the reason for the change is that the delinquency rate has recently decreased. As the change has occurred, there is a possibility that there may have been a slight difference between the old credit rating and the current credit rating scorecard, but I will explain by looking at the calculation method below.
3 ways personal credit rating system is calculated
First, it is classified by credit score. It ranges from 1 point to 1000, and it is easy to understand that the closer to the thousand point, the better. 신용등급 점수
The second is the top cumulative composition ratio. This comes out as a percentage, and the closer it is to 0%, the better the credit rating. 좋은뉴스
The last is the possibility of long-term delinquency, which is a statistical data that quantifies the number of expected people who are likely to be long-term delinquent for more than 90 days within a year out of 1,000 people with the same score as me. The higher the 0.01%, the better the credit quality.
Credit rating inquiry method (site introduction)
In Korea, it is typically viewed in two places: All Credit and Nice. Other than that, there are Shinhan Card and Siren 24.
It is also possible to inquire directly from All Credit, but it is also possible from affiliated companies Toss, Kakao Bank, Kakao Pay, Bank Salad, and Payco.
NICE is available on the Naver app and KT Pass.
On a PC, you can access the site to check your credit rating, and on mobile, use Toss or Kakao Bank. The downside on PC is that you have to install various security programs, so the mobile app is convenient.
Other than that, there are Shinhan Card and Siren 24.
Credit Rating Scorecard
credit score rating table photo
It can be seen that there is a slight difference between Nice and All Credit’s credit rating scorecard. Users with grades 1 to 3 are considered good credit, users with grades 4 to 6 are considered normal credit, and users with grades 8 to 9 are regarded as low credit.
Fortunately, it is said that when making a credit card or borrowing, it brings a score on the side that is advantageous to me.
What is different from the rating system
Sunshine Theory, a financial product for the common people
Sunshine theory photo
Sunshine Loan loans were available only to those with an annual income of less than 35 million won and a credit rating of 6 or less. For this reason, it is true that the ambiguous grade 5 was not received, but as a rough score, it is possible to receive a score of 744 points or less on Nice and 700 points or less on All Credit. (It has been changed to about 5 grades.)
Credit card issuance?
Previously, it was possible to get issued for grades 6 or higher, and lower than that could not be issued, but it was considerably mitigated. With the change to the credit score system, anyone with an upper cumulative score of 93% or less or a long-term delinquency possibility of 0.65% can be issued.
In addition, even if it is less than 500,000 won per month, it is possible as long as you have an income that allows consumption or savings other than living expenses.
Preferential standard for credit extension limit for medium interest rate loans
Prior to conversion, only 4 grades or lower were available, but Nice 859 points or less All credits 820 points Lowest 50% of personal credit score
Restrictive sales activity 724 points of Nice from the existing 7th grade, 655 points or less of all credits, and the bottom 10% of personal credit score
How to improve your credit score
1. Card use
In the past, it rose only if you used a credit card and did not overdue it, but now the history of using a check card is also reflected in the credit score system. If you use more than 300,000 won per month for 6 months, you can get an additional credit score.
2. Faithful payment of telecommunications and utility bills
Health insurance premiums, utility bills, telecommunications costs, and online shopping information are also reflected. If you submit your payment performance for more than 6 months, you can receive additional points, which means that you can raise your score if you have made sincere payments for up to 24 months. It is possible to submit by mail or visiting fax, but recently it is easy to submit your resume through an app.
3. Faithful repayment of loans
If you pay sincere repayment for more than 1 year without overdue various loans including sunshine loan (scholarship, general, etc.), you can raise your current low credit score to some extent.
Wrap-up
The most important thing is to use a loan and card suitable for my income to manage my credit score, and it is most important not to overdue. There are cases where the score range of the old credit rating and the current credit rating scorecard is different. This is because the calculation standard method has changed, so it seems important to design for the new calculation method.
With the change to the point system, it is possible to raise the rate to some extent with a public utility bill and communication fee check card, so please use it actively.