What are the factors affecting Credit Scores? | Cashing Pro

What are the factors affecting Credit Scores?

17 July, 2021

What are Credit Scores?

In Cashing Pro’s 30 years of personal loan experience, nearly 30% of customers monthly on average would ask us questions like “What is Credit Scores?”, “Does everyone have their own credit scores?”, “What is the point of checking Credit Scores and Credit Reports?” and “Will Credit Scores affect loan interest rate?”

So, “What are Credit Scores?”

Indeed, credit scores may not be familiar to most of the people, especially for these who have never borrowed money from banks or personal loan companies, but actually, credit scores are important in our daily lives. Why? Having lower credit scores indicates lower chances of applying credit cards, personal loans and mortgages, and even your chances of purchasing real estate and seeking jobs! This also explains why we need to maintain our good credit scores, but what are the factors affecting Credit Scores? Let Cashing Pro explain to you!

What are Credit Scores?-1

First of all, the credit scores are provided by credit organizations. In Hong Kong, there is only one well-recognized Consumer Credit Organization, TransUnion. Established in 1982, TransUnion has a database of more than 5,500,000 local consumer credit records. They provide services not only in Hong Kong, but also in more than 30 countries, in which around 45,000 are corporate clients. They have been managing five hundred thousand and fifty consumer credit records, which prove its high credibility.

Whenever you apply personal loans, credit cards, mortgages or loan services, involved banks or personal loan companies would transfer your information to TransUnion, in which these records would be recorded in your credit report.

What are Credit Scores?-2

Most of the banks or personal loan companies would register themselves as one of the members of TransUnion, as credit score reports are crucial in the loan assessment. Credit Reports have recorded everyone’s past loan records, i.e. number of times applying loans, the total outstanding balance and loan repayment records, and shown own credit scores (10 grades in total) based on these past records. In other words, credit score is an indicator of everyone’s credibility, which affects purchasing real estate or seeking for jobs to a certain extent. Your credit scores will be affected if you often settle your loan repayment late.

Credit Scores by grades

GradeCredit ScoreImplication
A3526-4000Good
B3417-3525
C3240-3416
D3214-3239Fair
E3143-3213
F3088-3142
G2990-3087
H2868-2989Poor
I1820-2867
J1000-1819

Is credit score checking compulsory for all banks/ personal loan companies?

No, it is sometimes optional. The main purpose of credit reports is to help banks/ personal loan companies assess applicants’ credibility for credit cards and personal loans approval. Cashing Pro also check their However, some people in Hong Kong whose credit scores are relatively poor can apply loans at personal loan companies where their credit reports need not be checked. As one of the TransUnion member, Cashing Pro will check loan applicants’ credit reports.

Credit Scores by grades

What factors will affect credit scores?

  1. Good and timely repayment records
    “My credit scores will be good if I have never applied for any personal loans or credit cards~” Such misunderstanding is common but actually wrong! In that way, your credit reports will not have any records that allow third parties assess your credibility. To have good repayment records, you are advised to repay personal loans or credit cards (with continuous usage) on a timely manner. On the other hand, your credit scores may be affected if you have late repayment records!
  2. Avoid applying/ owning many credit cards within a short period
    Every credit card has a credit limit. Owning many credit cards at the same time indicates the person involved has high credit limit and high chance of over-spending whose credit score will be adversely affected.
  3. Avoid applying many personal loans within a short period
    There are 2 reasons for applying many personal loans within a short period of time: 1. the actual need of a large amount of capital and 2. comparing personal loans among personal loan companies in terms of services, documents required and approval speed. For the second reason, you are advised to compare at most 3 personal loan companies.
What factors will affect credit scores?

How can we check our credit scores?

Can we check our own credit scores? Of course we can! You can check your own credit reports at TransUnion. By regular checking, you can better know your latest financial situation by grades and check if there is any wrong information (as your banks/ personal loan companies may have mistakenly send wrong information to TransUnion). You need not worry even if you have records of late repayment, as these records will only be kept on credit reports for 5 years.

Is loan comparison essential for borrowing money?

Comparing different personal loans is important before actually borrowing money. Among numerous loan companies in Hong Kong, customers who are new to money-borrowing do need to actual apply a few of them to compare their services, documents needed and higher loan approval speed. Why not considering Cashing Pro Personal Loan?

Is loan comparison essential for borrowing money?

Cashing Pro will never reject your loan application only because you apply for many personal loans within a short period of time. Instead, Cashing Pro’s well-trained staff will answer your loan enquires patiently to ensure your understanding. Apart from that, our loan approval computer system can provide a more accurate and faster loan approval result to solve your financial problems!

Click Cashing Pro Personal Loan to apply.

Warning: You have to repay your loans. Don’t pay any intermediaries.

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