Q&A related to credit score
What is a credit score?
Credit score is an indicator used by financial institutions such as banks and credit card companies to evaluate an applicant’s credit status when issuing a loan or credit card. It is calculated based on financial transaction history over the past five years, and the score ranges from 300 to 850 points. The higher your score, the higher your creditworthiness, which increases your chances of getting a loan or credit card, and lower interest rates. 신용점수 조회
How is credit score calculated? 이베이스매뉴얼
Credit scores are largely evaluated based on four factors: ‘repayment ability’, ‘credit transaction history’, ‘credit card and loan usage status’, and ‘application and inquiry history’.
Repayment Ability (35%): Considers past loan and credit card repayment history, delinquency and hesitation.
Credit transaction history (30%): Analyze credit transaction history (loans, credit card use, card loans, etc.) over the past 5 years by type, amount, and period.
Credit card and loan usage status (20%): Considers the number of credit cards and loans held, amount used, repayment balance, etc.
Application and inquiry history (15%): Considers credit card and loan applications, number of credit score inquiries, etc. over the past year.
How do I check my credit score?
Online: You can search for free after verifying your identity through Nice Keeper, All Credit, or the Financial Supervisory Service website.
Mobile: You can search through Nice Keeper, All Credit app, etc.
Visit a financial institution: You can visit a financial institution, such as a bank or credit card company, to fill out an application and make inquiries.
Paid inquiry: You can apply for a paid inquiry directly to a credit rating agency.
How to improve your credit score?
Regular repayments: Repay loan and credit card balances regularly, avoiding late payments and hesitation.
Sound financial transactions: Make financial transactions consistently over a long period of time and maintain an appropriate amount of credit card usage.
Credit card and loan management: Maintain an appropriate number of credit cards and loans and refrain from excessive use.
Application and inquiry management: Avoid applying for credit cards and loans carelessly and reduce the number of credit score inquiries.
What are the implications of having a low credit score?
Difficulty getting loans and credit cards: A low credit score can make it difficult to get loans or credit cards.
High interest rates apply: Even if you get a loan or credit card, high interest rates may apply.
Guarantor Restrictions: You may be restricted from becoming a guarantor.
Difficulty signing a lease: You may face difficulties when signing a lease for your home.