Repeated Credit Inquiries Causes Drop of Rating
Office worker Mr. Kim is preparing for his wedding and visited a bank to take out a loan for funds to lease a house. Kim discovered that it would be impossible to get the loan. The main reason was because his credit rating was very low.
A couple of months ago, Kim urgently needed some money and saw a TV commercial advertising, “Make a simple phone call to get a loan with no guarantee or security." That caused some trouble when he agreed to let the loan company go through his credit file. With famous celebrities promoting loans on TV, Kim thought it would be a safe company to trust, but he never imagined his agreement would put him into this disastrous situation.
Recently, famous entertainers appearing on TV advertisements for loan companies have rapidly increased, but repeated credit inquiries by some of those businesses have caused a decline of personal credit ratings. Some people experience difficulties in acquiring bank loans. Some businesses falsely claim that there would be no record left behind with a credit inquiry.
Increased credit checks by loan companies are caused by a multiplying of enterprise-styled loaning companies and celebrities continually shown on TV. As a result, there is a higher possibility of people approaching the companies.
In fact, persons at the K bank said, “Since advertisements for the industry have been on TV, extra numbers of checking credit files make a fall of credit rating and many cases have trouble lending capital. The majority of sufferers have absolutely no idea that they receive a lower credit rating through credit inquiry and agree on the checking procedure, making banks feel ashamed.”
This has become a serious matter because in phone consultations a loan business demands agreement on inquiry of credit file saying, “The law has been revised and no record will be left behind, so no harm will be applied to your rating.” It is known that the company receives thousands of phone calls daily, still this requires credit checks. Referring to the matter, the company stated, “I cannot hand over the exact method, but there are various ways to not leave any trace of records.”
However, officers at the Financial Supervisory Service explained, “Once a checking process is done no record will be left over? It doesn’t make any sense. If a lending business makes an inquiry, it is possible to check through credit inquiry companies like Korean Credit Information and Korea Information. In the end, a record will be placed in the credit checking company and it directly goes over to banks.”
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 / 입력시간: 2007. 01.05. 08:16
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