Credit Rating Scorecard 2022 My Credit Rating Simple Inquiry (ft. How to raise your credit score)
In the new year, various systems are newly established, or standards are changed. The credit rating scorecard has also undergone some changes. So today, let’s learn about the changed 2022 credit rating scorecard and how to raise your credit score.
Easily check my credit rating 신용등급 점수
Credit Rating Scorecard 좋은뉴스
A credit rating scorecard is a table that is divided into grades based on your credit score. The credit score is divided on a scale of 1 to 1000, and is evaluated based on individual credit activities and information.
The credit rating scorecard was created to set standards for financial institutions when conducting financial transactions such as issuance of bankbooks and loans to customers.
The customer’s income level and credit activity are evaluated, and based on this, the loan amount or limit is set. Likewise, borrowers can estimate the loan amount through their own credit rating inquiry before borrowing money.
Currently, the most trusted credit rating scorecards in Korea are All Credit and Nice. Most companies and financial institutions in Korea also use these two most frequently when setting standards and limits.
2022 Credit Rating Scorecard
This is the latest version of the 2022 credit rating scorecard. There is a slight difference in scores between All Credit (KCB) and My Credit (NICE) due to the slightly different counting method.
Compared to last year, the range of scores is not very different, but the overall grade cut-off has risen slightly.
If you need a loan plan or funds, it is recommended that you check several places rather than just one when you do a credit inquiry. In the past, ‘If you do a credit inquiry, you will be penalized.’ ‘Your credit will decline.’ etc. There were many stories.
However, a credit drop simply by a simple inquiry is not possible, and it is not true. Rather, these days, there are many places that actively recommend their own credit management, and provide credit inquiries in one minute.
Easy inquiry of my credit rating in 1 minute
Recently, internet banks such as Toss, Kakao Bank, and Bank Salad provide credit inquiry services free of charge.
It doesn’t affect your credit information even if you do it several times, so it’s a good idea to check it out once in a while and manage your credit score in advance.
how to improve my credit score
It is important to thoroughly manage your credit score in advance in order to have a smooth financial life without being blocked. If you easily think of issuing a credit card or loan in the way that it will be okay once, you may not be able to issue a credit card or loan later when you really need it.
1. Use of credit and debit cards
Use a credit card, but it’s important to pay it off without delay. When issuing a card, it is recommended to check your consumption pattern and use it within 30-50% of the usage limit.
Even if you spend the same amount of money, it is better to protect your credit rating by increasing the limit and spending leisurely than lowering the limit and filling it up.
Also, the number of credit cards is good to have less than 3, and using a lump sum rather than a card loan or installment is advantageous for your credit score.
In the case of a debit card, up to 40 additional credit points are given if you use more than 300,000 won for at least 6 to 12 months as it is subject to additional points for credit rating.
2. Set consumption according to income
Most credit rating declines are due to excessive spending compared to one’s income (card installment, card loan, loan, etc.). It is important to figure out your income and financial status and make an appropriate spending plan.
If your annual salary is 30 million won, but the loan is 60 million won, of course, the possibility of overdue and non-payment increases and your credit rating is bound to decrease.
3. Faithful repayment of loans
When executing a loan, it may cause a small drop in credit rating right now, but there is no big impact. However, it can drop significantly when the loan is overdue.
Since repaying the loan faithfully proves that you have the ability and will to repay the debt, it has a very positive effect on your credit rating.
For example, additional points are awarded when repaying microfinance loans without overdue for one year or more, or when repaying 50% or more of the loan principal.
4. Utilization of the first financial sector
When you need a loan or financial product, it is recommended to use 1 financial institution if possible. In particular, you can sometimes see products that advertise loans through Internet advertisements, text messages, or phone calls.
Most of such advertisements are from high-interest rate lenders of unknown origin, and dealings with unreliable financial institutions can have a significant impact on creditworthiness.
Korea’s primary financial institutions include Shinhan Bank, Woori Bank, Kookmin Bank, Hana Bank, IBK Industrial Bank of Korea, and NH Nonghyup.
5. Set up your main bank
Choosing one of the first financial institutions and making steady transactions is an indicator of a stable credit life, which is positive for your credit score. You can also receive benefits such as preferential interest rates from your main bank.
6. Faithful payment of utility bills
Utility bills such as telecommunications, electricity, water, and health insurance, which are the basics of life, are one of the important criteria for credit rating evaluation.
Overdue monthly utility bills are a factor that lowers your credit rating because you expect that your basic income or financial life will be difficult. So, if you do not overdue various utility bills for more than 6 months, it can have a good effect on your credit rating.