What is a credit score/credit report (TU): an indicator of your personal financial reputation?

In Hong Kong, a financially competitive region, understanding credit ratings is crucial to managing your credit and getting better financial products. In this article, we’ll take a closer look at the concept of credit ratings, including credit reports (TUs), and the hierarchy of credit scores. Let’s explore how you can make your credit rating more competitive.

What is a credit report (TU)?

A credit report is a detailed document that records your credit standing in the financial markets. In Hong Kong, credit reports are mainly provided by TransUnion (TU), the first and only consumer credit reference agency in Hong Kong. This report is important for banks and lending institutions to assess your repayment ability.

The contents of a credit report usually include:

Basic personal information

Credit card and loan history

Late payments and other adverse credit events


Public records, such as bankruptcies and court judgments

Introduction to Credit Scores: Levels A through J

A credit score is a quantitative measure of your creditworthiness, usually on a scale of A to J. Different scores represent different levels of credit risk. Different grades represent different levels of credit risk, which affects your ability to get a loan, your credit limit, and your interest rate.

The credit risk of each grade is summarized below:

Grade A: Excellent credit, lowest risk. Scores range from 3526 – 4000.

“Financial institutions generally consider them to have a very low risk of default, so they can get the most favorable loan terms.”

Grade B: Good credit, low risk. Scores range from 3417 – 3525.

“Borrowers with relatively low credit risk are usually offered the most favorable loan terms.”

Grade C: Fair credit, medium risk. The score range is 3240 – 3416.

“Borrowers with moderate credit risk may be required to provide more guarantees or assurances when approving a loan.”

Grade D: Fair credit, high risk. The score range is 3214 – 3239.

“Borrowers with higher credit risk may be required to pay a higher interest rate and face more stringent loan approval and conditions.”

Grade E: Poor credit, high risk. Scores range from 3143 – 3213.

“Borrowers with high credit risk are likely to be asked to provide additional collateral or guarantors, and financial institutions may be cautious in approving loans.”

Grade F: Poor credit, very high risk. Scores range from 3088 – 3142.

“The borrower’s credit risk is so high that he or she is unlikely to be able to obtain credit support from a traditional financial institution and may need to seek other sources of financing.”

Grade G: Extremely poor credit, very high risk. Scores range from 2990 – 3087.

“The borrower’s credit profile is so poor that it will be difficult for the borrower to obtain credit from a financial institution and he or she may need to seek non-traditional financing.”

Grade H: Poor credit profile, very high risk. Scores range from 2868 – 2989.

“Borrowers whose credit profiles are so poor that traditional financial institutions may be unwilling to take on such a high level of risk may need to seek alternative sources of financing.”

Grade I: Extremely poor credit profile, too high risk. Scores range from 1820-2867.

“Borrowers are in such poor credit standing that it is virtually impossible for them to obtain credit from a legitimate financial institution.”

J: Extremely poor credit profile, highest risk. Scores range from 1000-1819.

“The borrower’s credit profile is so unfavorable that, in general, formal financial institutions are not willing to provide credit facilities to these borrowers.” The above information is for reference only. If you have any questions or information regarding tax return (personal tax return, corporate tax return, accountant tax return), you are welcome to contact our professional advisors and we will provide you with a free quote and consultation service later.

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