리볼빙 신용등급The revolving service provided by credit card companies requires you to pay for the amount used on a designated date every month after using the card. However, if you apply for this service, only the agreed upon payment rate will be charged.
Since payments are made in this way, it is often used to prevent card delinquency in cases where repayment ability is insufficient.
Basically, just using the revolving service does not affect your credit rating. Rather, normal credit card use is a positive factor in your credit rating.
When NICE Credit Rating Agency evaluates your credit score, it is evaluated in four main ways.
Here, the revolving service includes credit card revolving information and evaluates creditworthiness at a rate of approximately 30%.
However, there are two reasons that cause a revolving credit rating to decline.
For all financial services (loans, credit cards), late payments affect your credit rating. In particular, it has the greatest impact on lowering your credit rating. There are two types of delinquency: general delinquency and long-term delinquency.
As mentioned above, if the amount is more than 100,000 won while using revolving, and the delinquency is more than 5 days from the repayment date, it will be considered short-term delinquency and your credit rating will be lowered.
You may think that all you have to do is repay your debt consistently, but if you continue to use the revolving service too much, it will be a negative factor for credit rating agencies.
If you carry over the appropriate amount and repay it well, there will be no problem, but if the revolving amount continues to increase, it will have a negative impact not only on your credit rating but also on your personal financial situation. Therefore, you should refrain from using it excessively.
If you use revolving services well, it can be a way to escape financial risk. However, it is true that it is a burden because the commission interest rate is so high.
The commission is usually set at around 10-17%. They tend to be higher than regular credit loans, but if your credit score is high, getting a credit loan may be a better option.
Revolving services will not lower your credit rating unless you make late payments or overuse, but there are some other problems.
These problems continue to have a negative impact. I wrote about these things last time under the title ‘Traps of Credit Card Revolving,’ so please refer to them.
