Today’s topic is the story related to “credit rating”, which is essential information that you must know in life. I’m going to organize a few things about how to easily manage the credit rating standard and credit rating score table that has changed in 2021, and how to easily manage my credit rating for free.
★Table of Contents
1. Details of changes from credit rating to credit rating 신용등급 점수
2. Utilization of credit rating scorecard
3. How to manage my credit rating for free
4. Helpful information for credit management 좋은뉴스
If you manage your credit well, you can get a credit card issued under good conditions, and you can also use credit loans under good conditions when in a hurry. Considering economic benefits, it is credit management that must be actively managed, and credit management can play a very important role at a crucial moment in life.
Let’s start by saying that you can do the basics as long as you familiarize yourself with what we’re going to check out today.
▶1. Details of changes from credit rating to credit rating
There is a word “credit rating” in today’s title, but strictly speaking, it is a term that is not used anymore and is an incorrect expression.
Clearly, not long ago, it was expressed as a grade 1 to 10, but when did it change? Those who ask are those who are not interested in credit management.
In the past, credit ratings were subdivided as follows.
It was divided into grades 1 to 10, and there were scores for each grade… The problem was that there was often a situation where one point was missing, so one grade fell, and one grade fell, so you couldn’t get a loan or get a credit card. .
For 1 point…
If you look at the 6th grade as an example…. In the case of Nice Jikimi, the 665th grade is the 6th grade, but the 664th grade is the 7th grade. The difference in score was only 1 point, but the disadvantage was not the only thing because I was in the 7th grade instead of the 6th grade. In order to solve this problem, the rating system was abolished and changed to a point system.
therefore….
I no longer use the term credit rating.
By the way…
It seems that the disadvantages have decreased, but I think that only the standards are becoming unclear. Standards are necessary in many situations anyway… For example, the standard for issuing a credit card must be 000 points or more.
Anyway, it’s important to note that from now on, it’s called a credit score or credit score, not a credit rating.
▶2. Utilization of credit rating score table
“Credit rating” is a misnomer, but it’s still in use, so I’ll stick with the term credit rating a bit more.
You looked at your credit score sheet a while ago.
Let’s compare the data uploaded by All Credit (=KCB=Korea Credit Bureau) in the past.
Although the grading system divided into grades 1 to 10 has disappeared, the criteria for distinguishing good credit from poor credit for each score range still exist.
However, in the past, this was clearly explained, but now it is expressed only as a rank.
It has been changed since January 2021 (before that, it was a pilot operation), and it was promoted like this, and it is still promoted like this.
Note that…..
Korea’s personal credit rating is done in two places: Nice Jikimi and All Credit. All Credit is also known as KCB and Korea Credit Bureau.
In the case of Nice Jikimi, the credit score ranking or credit score accumulation rate is displayed instead of the credit rating. In the past, it was easy to evaluate and compare whether or not a loan was possible or whether a card was issued by grade, but now it feels like something has disappeared.
I’m still not used to it, so the scoring system is very awkward. At this level, what grade were you in the past? I’m just thinking…
Oh, and as the credit rating system changed to a score system, there were changes in the credit rating standards, so there is a slight difference in comparing this score with the old rating table.
Based on the old standard, this score (Nice 878 points) was a score corresponding to the 2nd grade of Nice Jikimi, but you shouldn’t think of it as such now. That’s roughly what I’m guessing.
The Financial Services Commission is promoting the new system as having such advantages. In fact, it seems to be effective to some extent, but as a result, financial companies have to make another standard, so I have no choice but to think…
However… In the past, people were evaluated with simplified grades, so it felt bad to express humans as grades, but now it is difficult to express them with scores, so the inconvenience of dividing humans into grades has disappeared. Same.
The important thing here is this.
I said that even if it changes to a point system, some standard will be needed, but in the past, when looking at sunshine theory or common people loans, there were cases where only grades 6 to 10 were possible, but this was a few points… It was changed in this way.
The table above is a rough example… Some financial institutions do not express it this way. Some savings banks have been expressed in this way, such as the bottom 20% or less, and an increasing number of financial institutions are gradually presenting standards for more than a few points or less than a few points.
For example….
There is an emergency fund loan affiliated with Daegu Bank in the financial app called Fincra. Until last year, the standard was said to be Nice Jikimi 8th grade or higher, but now the Nice Jikimi personal credit rating is 459 points or higher.
However, you can see that 459 points are far from the previous standard of 8th grade. At this point, you can see that you shouldn’t think with the old standards.
In conclusion…
Now, there is no longer a need for schematized standards such as credit rating tables and credit score tables. You just have to keep your credit management steady, and you only need to check the score standards presented by each finance.
In the past, it was easy to memorize what grade I am… but these days I have 912 points… It’s hard to remember exactly ^^
▶3. How to manage my credit rating for free
If you are reading this article, I think you are a little interested in credit management as it is, so I will tell you how to check your credit rating for free.
However… if you haven’t done credit management yet, I would like to suggest that you sign up for a paid membership to Nice and All Credit for a year and manage them.
If you go into each company’s homepage, you can check a lot of information related to credit management, so it’s not bad to sign up for a paid membership at least once.
▣ How to check my credit rating for free
It should be called checking my credit score or checking my credit score.
Each company operates a program called “National Free Credit Inquiry” three times a year. Not all information can be checked, so it is operated so that you can check the necessary information. However, the process is very cumbersome.
Checking for free other than this method is to use the services provided by some financial companies and financial related companies (in the app). For the purpose of attracting customers or providing convenience to customers in financial companies or financial apps, we provide services so that you can check very basic information by entering into a partnership with a credit rating agency.
You can view loan information, credit score, inquiry history, and credit change history.
Nice Jikimi can be viewed for free only at Naver Financial and Cider Bank.
All credits can be checked for free at various companies such as Toss, Pink, Payco, Kakao Bank, Kakao Pay, and Hyundai Capital.
If you manage it in these apps, you can use it much more conveniently than the “National Free Credit Inquiry” provided by each credit rating agency.
It’s Nice’s free credit inquiry screen… It’s more cumbersome than I thought. We recommend that you just install the app and sign up to use it.
I check Nice Jikimi at Naver Finance (I am also subscribed to Cider Bank. Cider Bank is a bit cumbersome, but you can check the estimated income) and check all credit information at Kakao Bank.
Occasionally… there are people who mistake the information provided by Toss as a Toss credit rating, but what you need to remember is all credits and nice. Toss and Pink are contracts with All Credit to provide only some information as a service.
▶4. Helpful information for credit management
Lastly, I’ll give you a few quick tips to help you manage your credit. Originally, I had to write this part for a long time, but since I exhausted myself earlier, I will give you a brief tip.
▣ Raising credit score by registering non-financial information
If you want to raise your credit score urgently, there is a way to register “non-financial information” for each credit rating agency. Non-financial information refers to requesting information such as mobile phone payment details, maintenance fee payment details, and health insurance premium payment details, which are not financial-related, to be reflected in the credit evaluation by proving that you are paying in good faith.
For all financial activities, information is automatically registered and reflected in the rating, but for financial activities in daily life, information is not separately registered, so you must prove that you are “using it well” in person to be reflected.
In the case of all credit, clicking Raise Credit Score in the Fink app or Kakao Bank app will lead you to the document submission screen. You can do this or register on the homepage.
Anyway, if you send the history that you are paying well, your credit score will go up in a quick time. You can do a search for details.
▣ How to manage credit well
Finally, I’ll briefly tell you a few things you need to know.
Never overdue. The worst disaster for credit is overdue.
It is recommended to use a credit card within 30% of the limit. If possible, keep increasing your limit on a regular basis.
We recommend that you do not cancel old credit cards.
A credit inquiry does not affect your credit score.
Revolving has high interest rates, but it is also good for credit
Negative.
There are differences for each individual, but a lump sum payment is better than an installment transaction (no problem if you have good credit)
Cash service is the worst, don’t think there is
Learn about 1 financial loans rather than card loans (nowadays, you can easily use bank loans in the app)
If you use the minus bankbook for ornamental purposes, it will rather help your credit. If you wrote it, it’s good for your credit to fill it up quickly.
Estimated income is used in many places, and it goes up if you use a lot of credit cards and pay them off well.
I’ve put together a brief list of things that might be helpful to you. If you visit the homepage of each credit rating agency, you will be able to get a variety of additional information.