Credit information, why should you check it? Difference between credit score and credit rating and reasons
1. What is credit information?
Credit information is information that records and evaluates an individual’s financial transaction history. This affects a variety of financial activities, including taking out loans, issuing credit cards, and using rental services.
2. Necessity of checking credit information 신용정보조회서 발급
Impact on financ
ial activities: During financial activities such as loans, issuance of credit cards, and use of rental services, banks and financial institutions check the applicant’s credit information to determine approval and conditions. 이베이스매뉴얼
Credit rating management: You can check your credit information to understand and improve your credit status.
Financial Fraud Prevention: You can prevent financial fraud by checking to see if there are any financial transactions that are not in your name.
Employment and Start-up: Recently, there has been an increase in the number of cases where credit information is checked when seeking employment or starting a business.
3. Credit score and credit rating
3.1 What is a credit score?
A credit score is a number calculated based on an individual’s credit information and is an indicator used by financial institutions to evaluate the possibility of loan repayment. Credit scores range from 300 to 850, with higher scores indicating better credit.
3.2 What is a credit rating?
Credit ratings are grades based on credit scores and are used by financial institutions to determine the risk of issuing loans and credit cards. Credit ratings range from 1 to 10, with 1 being the best and 10 being the worst.
3.3 Difference between credit score and credit rating
Calculation method: Credit score is a number calculated based on five factors (payment history, debt utilization rate, credit period, number of credit applications, and credit transaction history). Credit rating is a classification based on credit score.
Expression method: Credit scores are expressed in numbers, and credit ratings are expressed in letters.
How it’s used: Financial institutions use both credit scores and credit ratings to evaluate an applicant’s creditworthiness.
4. How to check credit information
Online: Apply at the Financial Intelligence Unit (FIU) website of the Financial Services Commission.
Visit: Visit the nearest branch of the Financial Supervisory Service or the Financial Consumer Information Portal Center
Mobile phone: Apply through the Financial Intelligence Unit (FIU) app of the Financial Supervisory Service
5. How to manage credit information
Regular credit information inquiry: It is recommended that you check the status of your credit information by obtaining a credit information inquiry at least once every six months.
Efforts to manage credit: It is important to pay attention to credit management, such as credit card payments and loan repayments.
Clear financial transactions: You must clearly manage your financial transaction details and be careful about using cards not in your name.
Refrain from applying for unnecessary credit: You should refrain from applying for unnecessary credit cards and loans as this can lower your credit score.
Correction of credit information errors: If there are errors in your credit information inquiry, you must apply for correction immediately.
6. Credit information related site