Shall I get the Sunshine Loan Card too?
© Financial Services Commission, Microfinance Promotion Agency
A credit card allows you to buy the goods you need without cash, pay in months, and avoid inconvenient change. These days, I use credit cards more often than cash, and I don’t feel anxious even if I don’t have cash in my wallet. However, those in the bottom 10% of personal credit scores were not able to receive related benefits due to difficulties in issuing credit cards.
On October 27th, the Financial Services Commission introduced the ‘Sunshine Loan Card’ to enhance payment convenience for the underprivileged and to provide credit card benefits. After receiving a guarantee from the Financial Services Agency (Seo Geum-won), the low-credit and vulnerable class, who has difficulty in issuing a credit card, was issued a card from a full-time credit card company, enabling convenient payment and use of funds. 햇살론카드 신청
Applicants must have a personal credit score of less than 10% and an annual disposable income of 6 million won or more and do not have a personal credit card. As of the date of application for the guarantee, the personal credit score of either NICE or Korea Credit Bureau (KCB) must be less than 10% of the cumulative sub-component of the credit score. Those who fall under this category can be issued a credit management education (3 required courses for Sunshine Loan card education in the Financial Education Portal of the Financial Services Agency). The warranty period is up to 5 years. 이베이스매뉴얼
The Financial Services Commission said, “The purpose of providing a certain amount of credit every month through a credit card is to support the low-income class who are excluded from the benefits of using credit cards such as payment convenience and installment payments due to the difficulty in issuing a credit card.”
No credit card loans, installments up to 6 months
After receiving the guarantee from Seo Geumwon, you can apply for a card issuance by selecting one of the seven card companies: Lotte, Woori, Hyundai, Kookmin, Samsung, Shinhan, and Hana Card. However, card issuance does not necessarily mean that a card is issued just because it is guaranteed by the card company’s own authority.
The amount of guarantee is differentiated within a maximum of 2 million won according to the guarantee review taking into account the user’s ‘repayment index’ and creditworthiness. The repayment index is an evaluation model developed by Seo Geum-won to evaluate users’ will and potential for repayment such as credit increase, debt improvement, and credit education. The existing personal credit evaluation model was focused on the amount of debt and whether there were multiple debts, so it made up for the insufficient aspect of determining the debtor’s willingness to repay.
The credit card usage limit is the amount by subtracting 200,000 won from the guarantee amount in consideration of unauthorized payments such as transportation and communication costs. For example, if 1.5 million won is the guaranteed amount, the credit card limit is 1.3 million won.
The Sunshine Loan card has some limitations compared to the general card. There are restrictions on long-term and short-term card loans (card loan, cash service), installment periods are limited to a maximum of 6 months, and use of some items such as entertainment and speculation is restricted. Overseas payments and family cards. There are restrictions on the issuance of a postpaid high pass card. If the Seo Geumwon and credit card companies determine that risk management is necessary due to delinquency, etc., the limit of use of the Sunshine Loan Card may be reduced or the card use may be suspended.
Some are concerned about whether it is appropriate to issue a credit card to the lowest credit card holder, and some point out that the credit card industry will be burdened with delinquency, etc. Regarding this, the Financial Services Commission said, “In the case of delinquent people with the Sunshine Loan card, the obligation to repay still exists and the possibility of moral hazard of the card user is limited as it will affect the delinquency history, etc.” It is expected that the burden on the credit card industry will be very low.”
Apply through the app or at 35 support centers nationwide
To get a Sunshine Loan card issued by low credit users, they must first install the Seogeumwon application (app). You can download it from Google Play or the App Store, and you can install the Seogeumwon app by scanning the relevant information pattern (QR code) from the Seogeumwon website.
A joint certificate is required to verify that you are the applicant in the Seo Geumwon app. After that, if you agree to the provision of personal credit information, Seo Geum-won directly inquires and reflects the information to public institutions such as the National Tax Service and National Health Insurance Corporation or credit rating agencies. There are no additional proof of income that users must submit.
Among the qualifications for issuance of a Sunshine Loan Card, those in the bottom 10% of personal credit scores scored 655 points on Korea Credit Bureau and 724 points on Nice Credit Rating as of the end of November. It doesn’t matter if your personal credit score exceeds the bottom 10% after applying for a guarantee. Disposable income refers to the amount of income that a person can actually spend for one year, excluding the amount of principal and interest repayments such as loans from the annual income. Annual income is based on pre-tax income and includes various wage and salary income, business income, and pension income (public pension).
Users who have difficulty using the app can apply for a guarantee by making a reservation at the 1397 call center and visiting the integrated financial support center for the common people. There are 35 integrated financial support centers for low-income earners, including 6 in Seoul, where you can apply for guarantees. In the case of face-to-face application, a visit is required after making a reservation in advance, and it takes more time because the required documents are also provided during consultation. Even if you do not agree to the provision of personal credit information, you need to submit related documents.
You must complete the ‘3 essential education courses for the Sunshine Loan Card’
© Clip Art Korea
Since the Sunshine Loan Card is a financial product that is premised on the minimum repayment capacity, the guarantee or card issuance may be rejected depending on the examination result. For example, if a person whose overdue information, financial disorder information, public information, special record information, etc. has been registered with the Korea Credit Information Service, or if the Financial Services Agency or the applying card company has a special bond, it is impossible to issue a guarantee or card.
Card issuance is also difficult for those who are delinquent in national and local taxes, personal rehabilitation proceedings, bankruptcy immunity decisions, and debt reconciliation by the Credit Recovery Committee. However, the Sunshine Loan Card Guarantee can be applied for faithful repayers who are repaying the personal rehabilitation and credit recovery committee debt adjustment without arrears more than 6 times (6 months).
If the guarantee is approved by the Seogeumwon examination, you must complete the ‘3 essential education courses for the Sunshine Loan Card’. After signing up as a member of Seo Geumwon Financial Education Portal, access ‘Online Education’ → ‘Loan User Education’ → ‘Hatsalon Card’ and complete all 3 required courses, then click ‘My Page’ → ‘Online Learning Status’ → ‘Completion’ You can check the certificate of completion in ‘One Training’.
After that, you sign a guarantee agreement in the Seogeumwon app and select one of the 7 card companies that issue the Sunshine Loan card and apply for a card. Each card company has different annual fees and preferential benefits, so you need to look carefully.
Card issuance screening is the exclusive authority of the credit card company, so just because a guarantee is issued does not necessarily mean that the card company issues a card. However, within 60 days from the date of issuance of the warranty, you can apply to other Sunshine Loan card companies, and if it exceeds 60 days, you must re-issue the warranty. For warranty inquiries, please contact the Seogeumwon call center, and for card issuance inquiries, please contact the card company’s call center.
An official from the Financial Services Commission said, “Since the Sunshine Loan Card is a product issued under the guarantee of Seo Geumwon, it is difficult to extend or change the card company like a general credit card. After 60 days have elapsed, you can apply for another Sunshine Loan card.”