리볼빙 신용등급MONEYMO
A few days ago, I received a call from my credit card company telling me to use the revolving service. In fact, I used the revolving service occasionally in the past, but I haven’t used it at all with the cards I’ve made recently. I sometimes get calls from credit card companies asking me to use it, but when I look at my acquaintances, I see quite a few people using it. In this article, what is credit card revolving and what is revolving? Let’s talk in detail about how using the service affects your credit rating.
The revolving system is a method in which only a portion of the credit card payment amount is paid and the remaining payment amount is carried over to the next month. The exact name is called a partial payment amount carryover agreement.
To put it simply, if the card bill you have to pay this month is 1 million won, you can think of paying only the amount you can currently repay and carrying over the remaining amount.
In the case of the payment ratio, you can freely adjust it from 10% to 100%. If you do not want to carry over the payment amount, set it to 100% and all card bills will be paid at once without carrying over.
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In the case of the revolving service, if it is difficult to pay the card bill on the billing date, it can be useful in times of emergency because it can prevent delinquency by adjusting the payment ratio. However, if you continue to roll over the card, the card value and interest will accumulate, leading to a large increase. It can be a burden, so be careful when using it.
In particular, in the case of this service, it is applied differently depending on the individual, but the interest rate is quite high, up to 23% per year, so if you are using it because you have difficulty paying your credit card bill, it may be advantageous in terms of interest to take out a loan and repay it.
In fact, from the credit card company’s perspective, revolving is a payment method that is actively recommended to customers because it can reduce unnecessary delinquency by extending the card repayment period and generate higher commission income than card fees.
The revolving service itself does not affect your credit rating. However, if the total limit of your credit card increases with continuous use, it will affect your credit score, so excessive use is not good. If you use three or more cards for card loans, cash advances, or revolving, issuance of new credit cards may be restricted and your credit rating may drop. Please be aware of this.
On the other hand, in cases where revolving actually protects your credit rating, it can be seen as playing a positive role in such cases because it can prevent the worst-case scenario of delinquent card payments if used in situations where card payments are inevitably delinquent.
Your credit score will only have a positive impact if you use cards, loans, etc. consistently and without delinquent payments at a consistent and predictable level. When using the revolving service, please manage it carefully to avoid excessively high card usage.
