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It was found that the balance of using payment-type revolving services, in which a part of the credit card bill is paid first and the rest is paid later after purchasing goods with a credit card lump sum, increased by more than 1 trillion won last year.



According to the Credit Finance Association, as of the end of last year, the settlement revolving carryover balance of nine card companies in all industries, including Shinhan, Samsung, KB Kookmin, BC, and Hyundai, was 7.3574 trillion won, up 1.2125 trillion won from a year ago. , increased by 19.7%.



Revolving has the advantage of being able to extend repayment of some of the payment without overdue, but you have to pay a high interest of around 17%, and if you use it for a long time, it adversely affects your credit rating.



Settlement revolving is virtually the same as credit loans, but since it is not included in the household loan regulation, credit card companies have strategically carried out marketing to increase profitability.



In response, the financial authorities have come up with measures to improve the settlement-based revolving service, such as strengthening the duty of explanation for revolving service users since November of last year.



Personal short-term card loans, or cash advances, from nine credit card companies also increased by more than 2 trillion won last year.



Last year, individual users' card cash service usage amounted to KRW 56.6358 trillion, an increase of KRW 2.271 trillion, or 4.1%, compared to the accumulated annual usage in 2021.



Cash advances have an average interest rate of 17-19%, but they are mainly used as a means of payment because you can easily find and spend money.



Cash advances are also expected to continue to increase as they are not included in household loan regulations, such as the total debt principal and interest repayment ratio.



On the other hand, the balance of card loan, a credit loan product of credit card companies, was 36.319 trillion won at the end of last year, an increase of 830.2 billion won, or 2.3%, from a year ago.



However, compared to the end of the third quarter, it decreased by more than KRW 1 trillion. It seems that card loans were included in the DSR regulation, and credit card companies were passive in lending due to the cash market crunch and strengthened soundness management.