In this article, we will learn about the method of checking for bad credit, the criteria for bad credit, and the recovery period. Have you ever been delinquent on various taxes or loans? If you are worried that you have become a bad credit borrower because of this, please read this article.
In addition, if you are curious about the method of recovering bad credit or want more detailed information, please refer to the article How to check for bad credit, how to confirm, criteria, and disadvantages.
What is a bad credit borrower?
Since the bad credit registration system was abolished in 2005, they are now called financial debt defaulters. However, this does not mean that their reliability in financial transactions is lowered.
Unlike in the past, NICE Information Service and All Credit, domestic credit rating agencies, currently manage personal credit. In addition, the credit rating history managed in this way is shared with financial companies. As a result, various delinquent history is known to financial companies.
Bad Credit Criteria
More than 9 months of delinquent housing loan payments
More than 3 months of delinquent payments of over 500,000 won
More than 1 year of delinquent payments of over 5 million won in taxes and fines or more than 3 times a year
More than 90 days of delinquent payments or credit card payments of over 50,000 won
Obviously, the most important thing to avoid becoming a bad credit borrower is not to be delinquent. If you have any additional delinquent payments, you should pay them as quickly as possible.
Time it takes to recover your credit score
To get out of being a bad credit borrower, you must pay off all the overdue amounts and unpaid amounts. However, paying off the money does not immediately increase your credit score.
The longer the delinquent period, the longer it takes to recover your credit. Depending on the period of delinquency, it can affect your credit score for up to 5 years.
Short-term (less than 90 days) delinquency: 3 years
Long-term (more than 90 days) delinquency: 5 years
If you are delinquent on payment for less than 90 days, your credit rating will be affected for 3 years, and if you are delinquent on payment for more than 90 days, your credit rating will be affected for 5 years. Therefore, it is recommended that you try to raise your credit score in various ways during this period.
TOP 10 ways to raise your credit score in a short period of time
Disadvantages of bad credit
If you become a bad credit borrower, it is almost impossible to do credit transactions. As mentioned above, your delinquent payment record will be shared with financial institutions and card companies. Below are the typical activities that you cannot do if you become a financial debt defaulter.
Impossible to issue credit cards or have your credit cards suspended
Impossible to rent home appliances and various products
Impossible to use cash services, revolving, or new loans
Possibility of bankbook payment suspension
How to check for bad credit borrowers and check for free
If you have a record of delinquent payments and want to check whether you are a bad credit borrower, you can use the website of a domestic credit rating agency. You can check your bad credit status for free 3 times a year with Nice Jikimi and All Credit.
In addition, Toss, Kakao Bank, Naver Pay, etc. are also available these days. You can check quickly with a few clicks, so give it a try. Since the law was revised in 2011, simply checking your credit score does not affect your credit rating, so you don’t have to worry.
Rather, it is very important to quickly identify any debt history, and quickly correct any low score causes to manage your rating.
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Nice Jikimi bad credit status check method
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We have learned about bad credit status check methods, criteria, and recovery periods. Managing your credit score is very important for financial transactions. If you have bad credit, please refer to the above article to quickly recover.