As the year changes, various systems are created or removed, and there are many systems that are modified. In particular, institutions related to finance are very important because they are closely related to our lives.
Credit Rating Scorecard
‘Credit score from credit rating, credit rating score table’ 신용등급 점수
Today, I’m going to learn about the credit rating scorecard that has changed since January 2021. I hope it will be helpful to those who are curious about the credit rating scorecard, which is a little more flexible in issuing loans or credit cards than before. 좋은뉴스
credit rating
Credit rating refers to a rating that evaluates each individual’s creditworthiness by a personal credit rating agency by integrating the presence or absence of overdue, amount, period, debt, etc. at the time of credit transaction. Personal credit rating companies such as Nice Jikimi, All Credit, and SCI Evaluation Information grade credit ratings based on evaluation items and reflection rates. Although there may be slight differences, they are evaluated almost similarly and classified credit ratings from 1 to 10.
Depending on the credit rating, the bank loan interest rate is applied differently. Because of this, credit ratings acted as an important factor for favorable interest rates when using bank loans. However, if the rating is divided by a difference of 1 points, since there is an unreasonable existence such as being limited to loans or credit card issuance, the credit rating system has been abolished since January 2021 and changed to credit score.
credit score
It is said that if you divide your credit by score rather than by grade, it will be easier to issue a credit card and get a loan. For example, in the past, it was possible to issue a credit card with a grade of 6 or higher, but now, when the score system has changed to 680 or higher, a credit card can be issued. A credit rating score is a score table that quantifies the possibility or risk of future delinquency after collecting credit scores for individuals from personal credit rating agencies and analyzing them statistically.
credit card issuance points
1. Credit Rating Scorecard
The table below is the credit rating score table that was implemented in January 2021 KCB (All Credit), NICE (My Credit) are each evaluation company’s gajeom standard, It is said that it is different depending on the weight of the evaluation standard.
Credit Rating NICE (My Credit) KCB (All Credit)
Grade 1 900~1000 942~1000
Grade 2 870~899 891~941
Grade 3 840~869 832~890
Grade 4 805~839 768~831
Grade 5 705~804 698~767
Grade 6 665~749 620~697
7th grade 600~664 530~629
Grade 8 515~599 454~529
Grade 9 445~514 335~453
10th grade 0~444 0~334
2. Criteria for issuing credit cards
The standards for issuing credit cards are said to differ between KCB (All Credit) and NICE (My Credit) scores. Currently, credit card issuance is possible when the personal credit score is higher than 93% or the possibility of long-term delinquency is less than 0.65%.
KCB (all credits): 576 points or more
NICE (My Credit): 680 points or more
How to check Kakao Bank credit score
How to check your credit score
They say there are ways to check your credit score by visiting, accessing the credit rating company’s website, or checking it on your mobile device.
1. Direct visits to banks and insurance companies
Those who have difficulty using electronic devices can check their credit score by visiting their bank or insurance company.
2. Accessing the homepage
You can check your credit score for free by accessing the websites of credit rating companies such as KCB (All Credit) and NICE (My Credit). However, it is said that only 3 times a year can be viewed free of charge.
3. Mobile
If you use financial apps such as Kakao Bank, Toss App, and Bank Salad, you can check your credit rating score for free.
How to manage your credit score
How to manage your credit score
Credit score is very important not only when issuing a credit card, but also when buying a car or getting a loan when looking for a house. Because of this, it is said that it is good to manage your credit score on a regular basis to raise or maintain your score.
1. How to raise your credit rating scorecard
There are several ways to add points to your credit rating scorecard. If you have repaid more than half of the loan principal, if you have used a check card for more than 300,000 won for more than 6 months, if you have faithfully paid utility bills such as telecommunications, water and electricity bills for more than 5 months without being overdue, if you have faithfully paid other microfinance for more than 1 year It is said that if you repay it, you can raise your credit score score.
If more than 50% of the loan principal is paid off
Use check card worth 300,000 won for more than 6 months
Faithfully pay telecommunications, water and electricity bills for more than 5 months
Faithful repayment of microfinance for more than 1 year
2. In case of a decrease in the credit rating scorecard
If your credit rating scorecard goes down, it’s usually because of a delinquency. It’s especially bad if you’re in arrears on your loan. If you overdue the amount of 100,000 won or more for more than 5 days, it will adversely affect your credit rating scorecard, and if you use excessive cash service or short-term card loans over a certain amount in a certain period of time, it can drop.
In addition, even if there is no or little financial transaction such as loan or card use, the lack of financial transaction information to determine creditworthiness may cause the credit rating score to fall rather than rise or receive a medium grade.
Loan overdue (more than 100,000 won, overdue for 5 days or more)
excessive cash service
Excessive short-term credit card loans
overdue utility bills
So far, I’ve been learning about the change from credit rating to credit score since January 2021. I hope it was helpful to those who are curious about credit scores, which are very important when using various financial services such as loans and credit cards.
If you are curious about how to report wage arrears and how to apply for arrears from the Ministry of Employment and Labor, check the link below.