TransUnion (TU) is currently the only company in Hong Kong providing personal credit reports. Checking your credit report can help you:
Understand the Loan Interest Rates You Are Eligible For
Banks and financial institutions refer to your personal credit score when approving loan and mortgage applications. A higher score could mean a difference of at least 40% in the actual annual percentage rate (APR) you receive.
Ensure Accuracy of Your Past Credit Records
Your credit report contains records from the past 5 to 8 years. Any errors in these records could lower your credit score, potentially leading to rejections for loans, mortgages, or credit cards.
Prevent Identity Theft
According to a survey by TransUnion, nearly 40% of respondents or their relatives have been victims of identity theft. One consequence of this is the unauthorized use of credit cards and resulting overdue balances, which negatively impact credit scores. Regularly reviewing your credit report can help you detect unusual activity early.
Understand Your Financial Situation
By thoroughly reviewing past credit applications and the cancellation of credit accounts (e.g., successfully canceling unused credit cards), you can gain a better understanding of your financial health.