Complete Hong Kong Credit Score Guide

Credit score, as its name implies, is related to your credit.  If you have any credit accounts including credit cards, loans or mortgages, you have a credit report, detailing how you manage your money. This data is then used to create your credit score, which lenders will use for reference when approving your loan application. It is rated on a grading scale from A to J, with letter grade A being the best and J being the worst.

Your credit report includes information listed below:

• Your basic personal information 

• Your credit account information (e.g your lender, loan amount and repayment history) 

• Your public records (e.g. money owed, bankruptcy and discharge of bankruptcy)

• Number of enquiries made by TransUnion’s members about your credit file for your credit application in the past 2 years and your credit score

• Lenders may review your credit report for your loan application 

• The negative information on your credit report usually falls off five years after the accounts are settled, or eight if you have been bankrupted. 

1. Repayment history: this is the most important as it affects how you manage your finances. 
2. Total loan amount
3. Credit history length: If you don’t have credit history or if it is too short, it is difficult, if not impossible, for lenders to understand your financial history, which will affect your loan application negatively. 
4. Types of credit account 
5. New credit account

Moreover, your credit score changes as time goes by.  It will also change according to your repayment history.

You can either check your credit report online on TransUnion or book an appointment online and go to the TransUnion office to get the report.

Even if you have poor credit, you may be able to apply for loans. However, it is important to note that the loan amount is usually lower and it often comes with a higher interest rate. You can first check out what loan products are available to people with low credit score on MoneySmart before applying.