5 Practical Habits to Raise Your Credit Score
Two people may have the same job and the same salary, yet one receives a loan rate of 4.2% while the other gets 6.8%. That 2.6 percentage point gap creates a difference of about 160,000 won per month on a 100 million won, 30-year loan, adding up to nearly 57 million won over 30 years. The factor at that crossroads is your credit score. Fortunately, a credit score is not something you are born with; it is built through everyday habits. Today, instead of vague advice, we will break down in numbers how scores are actually calculated and the 5 practical habits that can help.
| Section | Key summary |
|---|---|
| Introduction | The factor at that crossroads is your credit score |
| First, who calculates credit scores and how? | The scores from the two companies can differ because they weight evaluation factors differently |
| Habit 1. Never be late, not even by one day | Repayment history carries the greatest weight in a credit score |
| Habit 2. Use only 30-40% of your card limit | Short key point |
| Habit 3. Directly submit information that can be reflected in your evaluation | Short key point |
| Habit 4. Do not cancel old cards carelessly | A longer credit history is more favorable for your score |
| Habit 5. When repaying debt, start with the 'expensive debt' because order shapes your score | If you have multiple debts, what you repay first affects how quickly your score recovers |
| Priorities at a glance | Keep card utilization within 30-40% of the limit |
First, who calculates credit scores and how?
In Korea, personal credit scores are calculated by two credit bureaus, NICE Jikimi and KCB (All Credit), each on a scale from 1 to 1,000 points. The scores from the two companies can differ because they weight evaluation factors differently. Broadly speaking, the four main pillars are ① repayment history, including delinquency, ② debt level, including the amount owed and credit limit utilization, ③ length of credit history, and ④ credit mix, meaning the types of financial transactions you use. Once you understand this structure, it becomes clear what you need to do to raise your score.
Habit 1. Never be late, not even by one day
Repayment history carries the greatest weight in a credit score. In particular, if a delinquency of 100,000 won or more lasts for 5 business days or longer, it is recorded by credit bureaus and can cause a sharp score drop. A single short-term delinquency can reduce your score by dozens of points, and the mark can remain for a certain period even after repayment. The key point is not the size of the amount but the delinquency itself. Put telecom bills, card payments, and loan interest on automatic transfer, and make it a habit to check your balance the day before payment. This is the strongest line of defense for protecting your score.
Habit 2. Use only 30-40% of your card limit
How much of your credit card limit you use, or utilization rate, is directly reflected in the debt level assessment. If you charge 4.8 million won every month on a card with a 5 million won limit, you may be read as someone stretched to the limit even if you pay on time, which works against your score. As a general rule, keeping usage within 30-40% of the limit is considered a safe range. With a 5 million won limit, that means managing monthly spending around 1.5 to 2 million won. If cutting spending is difficult, you can also lower the balance at the billing point by making an advance payment before the payment date.
Habit 3. Directly submit information that can be reflected in your evaluation
Many people do not realize this, but records showing faithful payment of telecom bills, health insurance premiums, national pension contributions, apartment maintenance fees, and similar expenses can count as positive factors if you submit them yourself. Through the 'raise credit score' menu in apps such as NICE, KCB, Toss, or Kakao Pay, you can link and submit non-financial payment records. The effect is especially meaningful for young workers with limited credit transaction history. Since a few minutes of clicking can sometimes raise your score by several to dozens of points, it is worth checking once a quarter.
- Submit records showing at least 6 months of faithful telecom bill payments
- Link health insurance and national pension payment records
- Consistent small transactions, such as steady debit card use, can also positively affect credit history length and credit mix
- However, submissions add points only when they show faithful payment; delinquency records can instead have a negative effect
Habit 4. Do not cancel old cards carelessly
A longer credit history is more favorable for your score. So if you cancel your oldest main card simply because you no longer use it, your average credit history may shorten and work against you. Conversely, if you open several new cards in a short period or apply for loans and cards from multiple financial companies at once, including through credit inquiries, you may appear to be someone urgently short of money. The standard approach is to keep only the cards you truly need, centered on the ones you have used for a long time.
Habit 5. When repaying debt, start with the 'expensive debt' because order shapes your score
If you have multiple debts, what you repay first affects how quickly your score recovers. In general, clearing debts with high interest rates and those viewed as risk signals, such as cash advances, card loans, and high-interest loans, benefits both your score and your interest costs. For example, if you have a 3 million won cash advance at 19% per year and a 3 million won overdraft account at 5% per year, repaying the cash advance first with the same 1 million won produces roughly 4 times the interest-saving effect. As total debt decreases and high-risk transactions disappear, your score naturally recovers.
Priorities at a glance
- Prevent delinquencies first: automatic transfers + scheduling right after payday, which has the biggest effect
- Keep card utilization within 30-40% of the limit
- Directly submit faithful payment records for telecom, insurance, and pension through apps
- Keep old main cards and avoid multiple applications in a short period
- Repay high-interest and high-risk debt first to lower total debt and risk level
A credit score is not a sprint; it is a record of consistency. These habits will not raise your score by 100 points next month, but if you build them faithfully over 6 months to 1 year, your interest rates, limits, and loan eligibility can change noticeably. Change begins the moment you recognize your score as something to manage. This article is for general informational purposes, and actual score calculation standards may differ depending on the credit bureau, timing, and individual circumstances. Please check your exact credit status directly through NICE Jikimi, KCB, or similar services.