Understanding and Improving Your Credit Score in Hong Kong

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In Hong Kong, personal credit scores (Credit Score) are a crucial basis for banks and financial institutions to assess lending risks. TransUnion is the primary credit rating agency locally, offering a scoring range from 1000 to 4000 points, and categorizing ratings from A to J, with A being the highest.

Key Factors Affecting Credit Scores

• Repayment History: Timely repayments can improve your rating, while late payments or defaults can lower it.
• Credit Inquiry Records: Frequent loan or credit card applications in a short period may be seen as a sign of financial stress, affecting your score.
• Credit Utilization Rate: It is recommended to maintain it between 30% to 50%. Over-reliance on credit limits may lower your rating.
• Available Credit Limit: Having sufficient available credit can demonstrate good financial management skills.
• Length of Credit History: A longer and stable credit history helps in building a better reputation.
• Past Credit Usage: Frequent borrowing or sudden large loan changes may affect your rating.

How to Improve Credit Score?

• Make repayments on time to avoid overdue payments.
• Reduce unnecessary loan or credit card applications to avoid too many credit inquiries in a short period.
• Control credit card usage and avoid frequently reaching the credit limit.
• Regularly check your credit report to ensure the information is accurate.

How to Check Your Credit Score? Are There Free Options Under Specific Circumstances?

• Paid Inquiry: TransUnion provides personal credit reports, each charge is HK$280, and it will not affect your credit score.
• Free Inquiry: If your application for a loan or credit card is rejected, you can use the rejection letter from the bank or financial company to request a free credit report from TransUnion within 1 month of receiving the letter (each rejection letter can only be used once).
• Inquiry Method: Currently, TransUnion has suspended online credit report inquiries. You must make an online appointment first and personally visit the Tsim Sha Tsui office, bringing your ID card and proof of address (such as a bank letter or utility bill) to collect the report.

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