Now, you can check by score instead of credit rating. So, some of you may be wondering how low your score has to drop to become a bad credit borrower. However, since they are called delinquent borrowers or bad credit borrowers, I prepared this article because I think there may be some of you who are wondering if you have become a bad credit borrower. I think it would be good to refer to this article.
Nowadays, credit card use has become so widespread that there is almost no one who does not use a credit card. Almost no one carries cash. It is convenient, but since you do not know how much you have used, you can receive text messages or KakaoTalk messages about the amount you have used, but it is difficult to actually feel it.
That is why some people are delinquent on their credit cards, and some people fall into financial crisis after borrowing money and repaying it. When your credit score drops like this, it becomes difficult to live in society. I will introduce methods for recovering from bad credit, so please read until the end.
📌 When is the best time to file for personal rehabilitation delinquency?
📌 Small business personal rehabilitation is a little different.
📌 If you have a lot of recent loans, is it considered fraud? 📌 Is it difficult to go through personal rehabilitation alone?
Criteria for bad credit
Let’s find out the criteria for bad credit.
Basically, if the delinquency period exceeds 5 days, credit problems will begin to arise. This delinquency record will be stored by the information agency, and credit cards will be suspended and loans will also be blocked. This means that credit transactions will no longer be possible.
A bad credit person will be registered if they are delinquent on payments of 100,000 won or more for 3 months or more, and in the case of national or local tax arrears, they will be registered as a bad credit person if they are delinquent on payments 3 times or more.
Even if you repay all the delinquent amounts, the record will not be deleted right away. It will remain for a certain period of time. It will be lifted within 90 days after delinquency, and for amounts of 10 million won or less, the record will be deleted at the same time as the lift. However, it is not easy for those with a lot of debt to recover even if they know the criteria for bad credit. Therefore, please refer to the methods for recovery.
Checking for bad credit
There are various ways to check for bad credit. You can check your credit score and delinquency information.
Today’s method of checking is through the ‘Personal Credit Information Viewing Service’. If you log in, you can check your loan information, delinquency information, and guarantee insurance information provided by the Korea Credit Information Service, so you can check for bad credit at once.
You can check credit information registered by financial institutions, etc. You can check credit rating information, public information, personal loan information, opening and issuance information, debt guarantee information, creditor change information, personal rehabilitation application information, loan debt burn information, credit information provision history, etc. You can do so through the site below, so please refer to it.
Go directly to the Personal Credit Information Viewing Service
Recovering Bad Credit
You can use the national system to recover bad credit.
It is a system that allows you to escape even if you are subject to bad credit criteria due to any debt, such as a credit card loan. It is a system that helps you escape the current economic situation and live a normal life. Please refer to the personal rehabilitation, personal bankruptcy, and credit recovery committee workout systems below to check if they apply to you and recover your bad credit.
1. Credit Recovery Committee Workout
The Credit Recovery Committee Workout System is open to those with a total debt of 1.5 billion won or less, unsecured debt of 500 million won or less, and secured debt of 1 billion won or less. If you can prove your income or the deliberation committee determines that you can repay the debt, you can proceed with the procedure. Once the procedure begins, any demand or seizure from creditors will be prohibited, and you can reduce the burden by reducing the monthly payment that you have to pay.
In addition, it is a system where you can receive a reduction in the principal according to the workout system.
Differences between personal pre-workout, personal rehabilitation, and personal bankruptcy
This time, we will look at the differences between personal pre-workout, personal rehabilitation, and personal bankruptcy. As we live our lives, we may inevitably find ourselves in a situation where debt piles up and it is difficult to endure. This is a personal rehabilitation system that can be forgiven up to 90% of the principal and 100% of the interest. It has the advantage of being able to forgive the principal of the debt, and it can prohibit the forgiveness and demand of not only financial institutions but also private loans, daily loans, and personal money. If the repayment plan is approved, you will have 3 years to pay and the remaining debt will be forgiven. This is a system that requires an application to the court, so it is easy to proceed with the help of an assistant.
How to check personal rehabilitation application qualifications
This time, we will look at how to check personal rehabilitation application qualifications. Basically, consultation seems to be the most important part. First, check it in writing, and if it applies to you, you can get a free consultation
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3. Personal bankruptcy
The personal bankruptcy system is a system that reduces both the principal and interest. And it is a system that allows bad credit recovery. However, those who are currently unable to earn an income or who are working but earn less than the minimum living expenses can apply. However, since it is a system where all amounts are forgiven, it is more difficult than the personal rehabilitation system, so you need to make a more precise plan and proceed.