From January 2021, the credit rating has been abolished and the credit score system has been implemented. Credit rating scores range from a low of 1 to a high of 1000, with higher scores indicating better credit standing. If you have a low credit score, there are disadvantages such as being rejected for issuance of a credit card, high interest rates and reduced limits.
The reason why the credit rating system was changed to a credit score system is that there were quite a lot of people who lost money on loan limits or interest rates because credit status was classified into grades even though there was no big difference in actual credit. For example, even if the credit status is almost similar, a credit card with a credit rating of 6 can be issued, but a credit card with a credit rating of 7 cannot be issued. To eliminate this threshold effect, a credit scoring system is being implemented. 신용등급 점수
index
NICE KCB Credit Rating Score Section 좋은뉴스
Types of Credit Evaluators
In Korea, credit score evaluation agencies include All Credit (KCB) and Nice Credit Evaluation (NICE). Since each credit rating agency has different standards for measuring the credit rating score range, even the same person can have a big difference in the credit score being looked up. Also, since credit rating agencies used by financial institutions such as banks are different, it is important to manage credit scores for both.
Credit Rating Score Interval
For Korea’s credit rating score range, both KCB and NICE calculate scores from a minimum of 1 point to a maximum of 1000 points. The credit score is measured by comprehensively determining credit or debit card consumption patterns, loan repayment history, telecommunication bill payment, utility bill payment, etc.
Credit Rating KCB NICE
Grade 1 942~1000 9000~1000
Grade 2 891~941 870~899
Grade 3 832~890 840~869
Grade 4 768~831 805~839
Grade 5 698~767 750~804
Grade 6 630~697 665~749
7th grade 530~629 600~664
Grade 8 454~529 515~599
Grade 9 335~453 445~514
10th grade 0~334 0~444
Credit Rating Agency Credit Rating Score Interval Standard Table
Criteria for issuing credit cards
In the past, credit card issuance standards were only available to those with a credit rating of 6 or lower. However, with the change to the credit score system, credit cards can be issued only to those who score 680 or higher on NICE and 576 or higher on KCB. A person with a credit score of 500 points can reach the KCB score of 576, the minimum credit card issuance standard, with a little effort.
Low-income loan standards
For microfinance products such as Sunshine Loan, those with NICE scores of 744 or less and KCB scores of 700 or less were eligible for application. The preferential score for medium-interest loans has been changed to NICE 859 points and KCB 820 points or less. If you have a credit score between 800 and 900 credit points, you can use a loan product from 1 financial sector. Credit rating 1 benefits have the advantage of lowering the loan interest rate and increasing the limit.
How to check your credit score
A lot of checks on your credit score won’t affect your score at all. Rather, it is more recommended to check your credit status by checking your credit score frequently. Credit score inquiries are available free of charge through sites such as Toss, Kakao Bank, Naver Pay, All Credit, and Nice Credit Ratings. You can also submit your communication bill or utility bill payment details through the credit score inquiry service. However, in the case of All Credit and Nice Credit Rating, credit rating score range inquiry is free of charge only four times a year.
KCB All Credit
NICE Nice Credit Rating
Toss credit score inquiry
Kakao Pay credit management
Naver Pay credit management
How to check your credit score for free
How to improve your credit score
Credit scores can rise as much as an individual makes an effort. Since your credit score is most affected by loans, overdue or non-payment, it is very important to faithfully pay your loans or bills. Since a credit card can be issued only when a credit card score is 680 or higher in the credit rating range of KCB and NICE, those with low credit should start with basic ways to improve their credit score. Unlike the credit rating system, where the rating does not change if the score does not exceed the cut line, the credit score system can quickly increase the score with a little effort. The conditions for an increase in credit score are not difficult at all, and you can start by repaying public utility bills and communication bills normally without overdue or unpaid.
Repay the loan faithfully.
Non-payment or late payment of loans is the biggest cause of a drop in credit score. In particular, if you do not pay your loan for a long time or are in arrears, you should be careful as it can take a big hit on your credit. In the credit score measurement, the total amount of loans, loan balance, financial industry (1st finance, 2nd finance), loan repayment ratio, repayment history, etc. are comprehensively judged. However, the importance of credit loan transaction history has decreased somewhat, accounting for about 20% to 30% of credit score measurement.
Pay your telecommunications bills faithfully.
If you faithfully pay telecommunications bills, utility bills, health insurance premiums, national pension, etc. for more than 6 months, you can receive help in improving your credit score. For this reason, it is recommended that you regularly submit utility bill and communication bill payment details every six months through credit management services such as Toss, Kakao Pay, and Naver Pay. These non-financial items account for 8% of credit score measures.
Use your credit card.
If you can get a credit card, we recommend using 30% or less of your limit without overdue. It is better to focus on using one card rather than using multiple credit cards. However, it is recommended that you use only 30% of your credit card limit, as it may be judged that you are spending too much compared to your income if you use it to the full limit. If you cannot obtain a credit card, using a debit card for at least 6 months and at least 300,000 won per month will help improve your credit score. Credit card usage patterns account for about 30% of credit score measurements