[Q&A] How to Apply for Haetsalron Card?

[Asia Economy Reporter Park Sunmi] The new guaranteed policy-based financial product for low-income earners, the Haetsalron Card, will be launched on the 27th. The purpose of introducing the Haetsalron Card, how to use it, and precautions have been summarized in a Q&A format.

Q. What is the purpose of introducing the Haetsalron Card?

A. The Haetsalron Card aims to support vulnerable low-income groups who have difficulty obtaining credit cards and are excluded from the benefits of credit card use such as payment convenience and installment plans. Similar to existing policy-based financial products like Haetsalron, which provide loan support through guarantees to low-income groups who find it difficult to get unsecured loans, this card provides a certain amount of monthly credit through a credit card.

Q. Is it appropriate to issue credit cards to the lowest credit score holders?

A. The Haetsalron Card undergoes guarantee screening by the Korea Inclusive Finance Agency based on the disposable income and repayment ability of the lowest credit score holders. The guarantee limit is supported differentially within a 2 million KRW limit according to repayment ability, and the issuance of the card is decided after individual screening by the card company. In case of delinquency on the Haetsalron Card, the delinquent party still has repayment obligations, and the delinquency history affects their credit record, so the possibility of moral hazard by card users is limited.

Q. Does issuing cards to the lowest credit score holders impose a heavy burden on financial companies due to delinquencies?

A. Considering that the Haetsalron Card is a product for the lowest credit score holders, it operates with a 100% guarantee ratio. In case of delinquency, the card company can receive full subrogation payment from the Korea Inclusive Finance Agency, so the burden on the card industry in case of delinquency is expected to be very low.

Q. What are the annual fees, preferential benefits, and application methods by card issuer?

A. Please refer to the photo.

Q. Where can I inquire and apply?

A. You can apply for a guarantee through the Korea Inclusive Finance Agency (KIFA) app. After screening and guarantee approval, you must complete mandatory Haetsalron Card education on the KIFA financial education portal. Then, after signing the guarantee agreement through the KIFA app, you can apply for and receive a card from one of the seven card companies.

If you have unavoidable reasons such as using a feature phone and cannot use the app, you can make a reservation through the 1397 call center and apply for a face-to-face guarantee at the Integrated Support Center for Inclusive Finance. For card applications, face-to-face and phone applications are available only for Lotte Card, and phone applications only for Hyundai Card.

Q. Who is eligible to apply for the Haetsalron Card?

A. Eligible applicants are vulnerable low-income groups who have completed Haetsalron Card credit education, have certain repayment ability, are in the bottom 10% or lower of personal credit scores, and do not currently hold a personal credit card as of the guarantee application date.

Q. What are the usage restrictions?

A. There are usage restrictions such as prohibition of short- and long-term card loans (card loans, cash advances), installment period limits (maximum 6 months), and restrictions on issuing family cards and postpaid Hi-Pass cards, so users should be cautious.

Q. Can anyone get a card just by applying?

A. Since this is a financial product based on minimum repayment ability, guarantee or card issuance may be denied depending on the screening results. Those registered with delinquency information, financial disorder information, public information, or special record information at the Korea Credit Information Services, or those with special claims at the Korea Inclusive Finance Agency or the applying card company, cannot receive guarantees or card issuance.

Q. What documents are required to apply for the Haetsalron Card?

A. For online applications and consent to provide personal credit information, a joint certificate is required. For online applications without consent to provide personal credit information, you must submit income verification documents as guided during the guarantee application through the app, and after confirmation by KIFA, you can continue the application.

For face-to-face applications, contact the 1397 Integrated Call Center for Inclusive Finance to make a reservation and receive guidance on the necessary documents during the consultation.

Q. What is the bottom 10% standard for personal credit scores?

A. As of the guarantee application date, if the cumulative lower percentile of the credit score is 10% or less at either NICE or KCB, the applicant is included in the Haetsalron Card target group.

Q. Can the Haetsalron Card be extended or can the card issuer be changed?

A. The Haetsalron Card is a policy-based financial product issued on the condition of a guarantee from KIFA, so extensions or changes of card issuer like general credit cards are difficult. However, there is no restriction on reapplication, so after canceling the currently used Haetsalron Card and waiting 60 days, you can apply for another Haetsalron Card.However, if there are remaining installment payments, you can apply only after fully paying off the balance.