A credit score records repayment habits, not income. What moves it, and the common misconceptions.
A score combines repayment history, debt level, account age and credit mix. Repayment history weighs most. High income with a missed payment scores low; modest income with years of on-time payments scores high. The score measures habit, not ability.
A small payment a few days late shakes the score more than years of good behaviour build it. Put card bills, phone bills and utilities on auto-pay — the simplest defence. Schedule the debit for the day after payday so it never bounces.
High spending relative to your card limit reads as 'no headroom'. Staying under 30% of the limit helps, and simply raising the limit lowers utilisation. Opening and closing cards often shortens your account history and hurts.
Checking your own score has no effect on it. Reviewing it regularly and disputing wrong entries is a net gain. Any offer to raise your score in days deserves suspicion — credit is a record built over time, and there is no shortcut.
Some behaviours hurt your score besides missed payments. Cash advances and card loans, even small ones, can be read as a sign of urgent cash need and pull the score down. Taking several loans from different lenders in a short period has a similar effect. Use of high-interest lenders can leave a mark for some time even after repayment. On the other hand, steadily repaying a loan builds a positive record over time. It helps to remember that the easiest money in a pinch is often the most expensive for your credit.
New graduates and people who haven't used financial products for years often score lower than expected even without missed payments, simply because there is little to assess. The basic fix is to build a record by using a debit card or a low-limit credit card steadily and paying on time. Korean credit bureaus also let you submit proof of paying phone bills, health insurance, national pension contributions and utilities on time, which can lift the score — especially useful for thin files. Because there are several bureaus, slightly different scores from each are normal.
If a payment has already been missed, the first move is to pay it immediately, however small. Once arrears pass certain thresholds of amount and duration they are shared across lenders, and the longer they run, the longer the record stays. With several overdue items, clearing the oldest first is the usual approach. After repayment, the score does not bounce back at once; it recovers slowly as a clean record builds again. If the debt is beyond what you can manage, look first at debt adjustment counselling from public bodies such as the Credit Counseling and Recovery Service rather than paying a private firm. Avoid anyone who asks for an upfront fee to raise your score.
A credit score is not something you raise once and forget; it is a record you maintain. Every three to six months, check your own score for any sudden drop, and if you see a loan or card you don't recognise, contact that lender and the bureau at once — it may be identity theft. Also check that no automatic payment has failed and that no dormant card has an unpaid annual fee. This guide covers general principles; each bureau's scoring details differ and can change.