Guide to Personal Banking and Finance Detail | 금융감독원 금융교육센터

Guide to Personal Banking and Finance

Guide to Personal Banking and Finance Detail
Ⅲ. Simple and Convenient Personal Banking
Posting date 2019-12-18 Hit 302
Ⅲ. Simple & Convenient Personal Banking.pdf

 Ⅲ. Simple and Convenient Personal Banking


1. Using a Payment Card

      When you need to spend money in your daily life, such as for purchasing goods and hospital bills, you can pay easily using a card instead of cash. A variety of payment cards are available to consumers from different issuers offering different repayment options. Some cards can be used only up to the balance in the cardholder’s account while others allow cardholders to spend first and then pay later.


More Information: Types of Payment Cards

◇   Check Card: If you use check card, the card company will take money directly out of your bank account. To use a check card, you need to maintain a positive balance in your bank account. As a check card is widely accepted, it is convenient to use.


◇   Credit Card: Credit card is a payment card that enables the cardholder to pay for goods and services. When you make a purchase with a credit card, the credit card company makes the payment for you, and you pay back to the credit card company later. Because of this arrangement, the credit card issuer needs to verify your ability to pay for the purchases you make before it can issue a card to you. Because the credit card issuer has to evaluate your credit risk carefully using personal information such as your legal resident status, your place of work, your property ownership, and your credit history, if you have no job, you may not be approved for a new credit card right away.


◇   Debit Card: When you make a purchase with a debit card, money is automatically taken out of your bank account. Debit card is a payment card that can be used like cash. This means that you can continue to make purchases as long as there is enough balance in your bank account. Because you have to enter your PIN to make a purchase with a debit card, it is relatively safer than other payment cards. However, not every store accepts debit cards, so you may not be comfortable to use it.


◇   Prepaid Card: Prepaid card is a payment card that you can use with your bank account. To use a prepaid card, you first deposit the amount of money you want to use into your account each month. A typical example of a prepaid card is a card used for subway and bus fares.



▼ Be Careful! 

 -  When you apply for the issuance of a credit card, you need to carefully select the credit card considering your spending preferences, average monthly income and expenses, annual fees, whether it is a product linked with your trading bank, and what the benefits are of using your credit card.


 -  After using a credit card, it is recommended that you make payment on time. If you miss your payment date, your credit card company will charge so high overdue interest in the future or even decide to terminate your credit card or record your overdue payment history in the record of financial institution. This could adversely affect your financial transactions at other financial institutions such as limit in loan amount or higher interest rate on loan. So you should be well informed about the benefits and costs of using a credit card before being applying for one, and using a check card instead of a credit card may be a good option if the goal is to spend within a preset budget.


 -  Using one or two credit cards is also recommended so that you do not have to keep track of too many credit cards.


     ※ Financial Supervisory Service’s Key Information for Each Transaction of Financial Instruments





2. Payment of Utility Bills



(1) Definition of Utility Bill

      Utility bill is a statement of payment to be made for the electricity, water, and gas you consume at home for one month. For foreign residents, it is mailed to the address shown on the alien registration card. Utility bills mailed to a wrong address could lead to a late payment or no payment, so make sure your mailing address stays current. If you miss your utility payment, you will have to pay an additional charge (late fee). If you continue to miss your utility payments, your electricity and water may even be cut off.


(2) How to Pay Utility Bills

      At most bank branches or post offices, you can find a special bill-paying machine. You can use the notice of payment (Giro notice) to pay your bills through the bill-paying machine. Payments must be made by the due date indicated on the notice of payment. Be aware that late fees will be incurred after this period. Utility bill receipts will prove your payment, so it is recommended that you keep them.


▼ More Information: How to Pay Utility Bill ▼

◇ Pay through an automatic bill-paying machine

 -  At most bank branches, you will find a special bill-paying machine. You can use your bankbook or bank payment card to pay your bills through this machine. You can avoid a fee for this machine by going to your primary bank.


◇ Internet Payment

 -  If you do not have the time to go to a bank, you can pay your utility bills online. Access your bank`s homepage and click on [Utility Bills]. You will be able to pay different types of utility bills. You can also visit the giro homepage ( operated by Korea Financial Telecommunications and Clearings Institute.


◇ Automatic Payment

 -  You can also set up an automatic utility payment arrangement with your bank so that the amount due is withdrawn from your account on a designated date every month. Automatic withdrawal can be convenient because you do not have to go to your bank to make the payment and you can avoid delinquency. But make sure you have enough money in your account for automatic payments.


◇ Payment at Post Office

 -  If you do not have a bank account, or you are not comfortable with your payment options, you can simply go to a nearby post office with your giro bill, and say you want to make payment. Employees at the post office will be happy to assist you.


  • 담당부서 : 금융교육국 일반금융교육팀
  • 연락처 : 02-3145-5965