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How can I boost my credit rating?
« on: August 07, 2020, 05:54:15 pm »
Hello everyone,
I was approved for two mortgages, but unfortunately by the time I got all my documents ready and submitted my portion of the down payment, more than a month had passed. As a result, the bank had to reevaluate me. It wouldn't have been an issue, but when I got reevaluated, my credit rating dropped from a 6 to a 7.

My personal credit rating increased, from a 6 to a 5, but my business credit rating (SOHO-ML) dropped from a 6 to a 7. Can anyone take any guesses what happened? How can I increase my rating in a short time?

1) I've paid all my bills on time.
2) I recently applied for a credit card and was approved, and it has a limit of 2 million.
3) I have a job that I've been at for about one year now. Annual salary of around 30 million.
4) I rent a place that costs me 350,000 KRW a month. It's a contract under my name, but I don't own it.
5) I purchased two officetels in a city near Seoul. They cost around 100 million each, but I was told I was approved for a 64/66 million loan on each of them, respectively. Unfortunately, because of my drop in credit, I am no longer qualified.
6) I had an interest-bearing savings account with around 1.2 million or so in it. However, I withdrew all of that so that I could put it toward the down payment on the properties.

When the bank called me to tell them I couldn't get the loan anymore, I was about to break down in tears. I was in public at a bookstore and wanted to just collapse. Fortunately, no one was around to see my breakdown. Is there anyone who could offer some advice? Thank you!


  • hangook77
  • The Legend

    • 2027

    • September 14, 2017, 09:10:12 am
    • Near Busan
Re: How can I boost my credit rating?
« Reply #1 on: September 16, 2020, 02:43:38 pm »
Top score 900?  After I paid off all my student loans and got my credit cards down, I was near 850 credit rating for a time before I got hit with some more debt again?  (Moving, deposit, and some other things I needed to set myself up?)   

I think ratios affect you.  How much debt to available credit?  How much do you use your credit and pay off fast?  How often have you applied for new credit?  Do you pay your bills on time?  How long have you had things in your own name?  Phone etc? 

But, Korean credit is tight.  Hard to get credit here, even when you have the money.  I had always heard the construction companies when they build a place will finance the loans themselves with their own mortgage companies.  Banks and lending firms next to useless here.  Use to be hard to even get decent credit cards here.  This was years ago, but I had an American friend with financial means married to a Korean woman.  He wanted to build a small villa type building  since his wife ran an academy doing well.  Making money.  It was a building for their academy and a nice apartment on top.  Wanted to get a loan from bank.  No way.  Forget it.  Bank said build it first then they would lend once they had the building as collateral.  So, he brought in money from America and built it.  Then, his wife took out a loan against the building and paid her husband back and he sent the money to America.  Then, she paid on the loan each month.  Even with their very large academy revenue stream, bank would not lend.  Millions of won a month.  This was years ago, but shows the stupidity and lack of credit here. 

Heck other users have even said many banks won't lend for a small business unless it is something established like a fried chicken shop or something very predictable.  Risk taking not allowed here.  System seems set up to reward those who already have money.  Anyways, don't take it personally.  It is messed up here that way.  I know another foreigner and his wife who wanted to get a new apartment in a new high rise.  Even with working for years and his Korean wife working a lot here too (decent income between them), tough getting credit to get a place.  Wife's family bought it and is leasing to own to them (which was nice of them).  Completely messed up. 



  • pkjh
  • Hero of Waygookistan

    • 1894

    • May 02, 2012, 02:59:44 pm
Re: How can I boost my credit rating?
« Reply #2 on: September 16, 2020, 02:55:29 pm »
Top score 900?  After I paid off all my student loans and got my credit cards down, I was near 850 credit rating for a time before I got hit with some more debt again?  (Moving, deposit, and some other things I needed to set myself up?)   

I think ratios affect you.  How much debt to available credit?  How much do you use your credit and pay off fast?  How often have you applied for new credit?  Do you pay your bills on time?  How long have you had things in your own name?  Phone etc? 

But, Korean credit is tight.  Hard to get credit here, even when you have the money.  I had always heard the construction companies when they build a place will finance the loans themselves with their own mortgage companies.  Banks and lending firms next to useless here.  Use to be hard to even get decent credit cards here.  This was years ago, but I had an American friend with financial means married to a Korean woman.  He wanted to build a small villa type building  since his wife ran an academy doing well.  Making money.  It was a building for their academy and a nice apartment on top.  Wanted to get a loan from bank.  No way.  Forget it.  Bank said build it first then they would lend once they had the building as collateral.  So, he brought in money from America and built it.  Then, his wife took out a loan against the building and paid her husband back and he sent the money to America.  Then, she paid on the loan each month.  Even with their very large academy revenue stream, bank would not lend.  Millions of won a month.  This was years ago, but shows the stupidity and lack of credit here. 

Heck other users have even said many banks won't lend for a small business unless it is something established like a fried chicken shop or something very predictable.  Risk taking not allowed here.  System seems set up to reward those who already have money.  Anyways, don't take it personally.  It is messed up here that way.  I know another foreigner and his wife who wanted to get a new apartment in a new high rise.  Even with working for years and his Korean wife working a lot here too (decent income between them), tough getting credit to get a place.  Wife's family bought it and is leasing to own to them (which was nice of them).  Completely messed up. 
Bank loans to the average Korean citizen was virtually unheard of until after 1997. Almost no Koreans even had a credit card back then. Everything was bought with cash, or loaned from family members. One of the conditions of the IMF bailout was easier access to credit. Hence, one of the reason you saw them practically handing out credit cards on the street in the early 2000s. Got a lot of Koreans in credit trouble, for a population that wasn't used to credit. It was like the 1950s in California when they mailed out those unsolicited credit cards.


  • hangook77
  • The Legend

    • 2027

    • September 14, 2017, 09:10:12 am
    • Near Busan
Re: How can I boost my credit rating?
« Reply #3 on: September 16, 2020, 03:14:11 pm »
Bank loans to the average Korean citizen was virtually unheard of until after 1997. Almost no Koreans even had a credit card back then. Everything was bought with cash, or loaned from family members. One of the conditions of the IMF bailout was easier access to credit. Hence, one of the reason you saw them practically handing out credit cards on the street in the early 2000s. Got a lot of Koreans in credit trouble, for a population that wasn't used to credit. It was like the 1950s in California when they mailed out those unsolicited credit cards.

My friend built his academy  and home building in 2007 just before I met him.  He said he came over in 2002 or 2003.  They got divorced a few years after that and he's back in America now.   I do remember 2008 and 2009ish, I was living in the country and I met this Chinese Korean dude who spoke fluent English cause he also lived in America for many years (but was born in Korea and never given citizenship but permanent residency).  He ran a restaurant.  He  did tell me that many old grey drab concrete housing or buildings with shabby looking siding on them, the folks had money stashed away and never spent on their homes or anything fancy.  He said folks paid cash for everything then/  At this time.  I figured if banks gave no credit they prob had to.  But it must have been possible to save a lot of money too back then.  Cheaper living cost. 

I don't think it's like that now.  I always hear about Koreans being in debt and over their head in in it now.  But still hard to get credit? 


  • pkjh
  • Hero of Waygookistan

    • 1894

    • May 02, 2012, 02:59:44 pm
Re: How can I boost my credit rating?
« Reply #4 on: September 16, 2020, 05:01:18 pm »
He  did tell me that many old grey drab concrete housing or buildings with shabby looking siding on them, the folks had money stashed away and never spent on their homes or anything fancy.  He said folks paid cash for everything then
Koreans do get easier access to credit these days. If married, if both are Korean and good jobs, no problem. 'Issues' arise when one of the people in the couple is a foreigner. Full-time public school teachers are pretty high on the list for loans, since it's usually a life time job with guaranteed income.

Anyways, there were a few stories in the last decade of old people dying alone, in pretty shabby housing, and authorities discovering they had extra property, and like billions of won saved up. Then their uncaring children come out of the woodwork to fight over the assets.