What is a credit score?
A credit score is a number calculated based on an individual’s credit information and is an indicator used by financial institutions to evaluate the possibility of loan repayment. Credit scores range from 300 to 850, with higher scores indicating better credit.
How to calculate credit score
Credit scores are calculated based on the following five factors: 신용정보조회서 발급
Payment history (35%): Past loan and credit card repayment history, delinquency and delinquency 이베이스매뉴얼
Debt Utilization Ratio (30%): Ratio of credit limit usage to loan balance.
Credit period (15%): Credit card and loan usage period
Number of credit applications (10%): Number of recent credit card and loan applications
Credit transaction history (10%): Credit card and loan transaction history
The importance of credit score
Your credit score affects a variety of financial activities, including:
Loan application: When applying for a loan, the bank checks the applicant’s credit score to determine whether the loan will be approved and under what terms.
Loan interest rates: The higher your credit score, the lower interest rates you can get for loans.
Credit card issuance: When issuing a credit card, the credit card company checks the applicant’s credit score to determine whether to issue the card and the limit.
Use of rental services: Your credit score may also be checked when using rental services such as rental cars and rental homes.
Employment and Start-up: Recently, credit scores are increasingly being checked when seeking employment or starting a business.
How to manage your credit score
In order to increase your credit score, you need to make the following efforts:
Regular credit information inquiry: It is recommended that you check the status of your credit information by obtaining a credit information inquiry at least once every six months.
Check for errors: If there are errors in your credit information inquiry, you must apply for correction immediately.
Efforts to manage credit: It is important to pay attention to credit management, such as credit card payments and loan repayments.
Clear financial transactions: You must clearly manage your financial transaction details and be careful about using cards not in your name.
Refrain from applying for unnecessary credit: You should refrain from applying for unnecessary credit cards and loans as this can lower your credit score.
Credit score related site
Credit Score Tips
Set up automatic credit card transfer: We recommend setting up automatic transfer so you don’t miss your credit card payment due date.
Create a loan repayment plan: It is important to create a loan repayment plan and stick to it.
Participating in training on credit information management: It is also helpful to participate in credit information management training provided by the Financial Consumer Information Portal Center of the Financial Supervisory Service.