Hong Kong credit score - what does it mean?

[HKNewBi]

I recently applied for a small loan from DBS.

they came back and said that due to my poor credit score, they could offer me a loan but at a higher interest rate.

So I purchased my credit report from Transunion. Really nothing on there - my credit card limits was about it except a score of 'E'.

I own a property in HK outright and mortgage on one other. Pay my mortgage on time every month for the last 3 years and pay all my bills by autopay.

I also pay my credit card balances in full each month and have done so for 5 years.

Never been bankrupt or defaulted on credit.

Any reason why I am apparently being seen as more of a credit risk than I would expect to the extent the banks are being more reluctant to lend?

[stockbroker]

may be your mortgage amount too big relative to your income?

[DarrenChan]

They probably have some calculations on ability to repay after taking into account your current mortgage instalments and maxing out the other credit cards.

[Football16]

A couple of things might impact you.


The credit score as of the date of the report if it was say an A category might tell you that statistically over the next 12 months 99.xx% - or some number like that - will keep their commitments and pay their obligations to credit providers. They mean - make payment by 90 days from the date it is due.

They calculate this for each level of rating. It groups credit users and calculates their statistics. OP might be in a group that statistically only pays on time 54% of the time (just a wild number based on nothing as I have NO idea what it is for E). Even though OP is a good bill payer he is scored based on maybe his mortgage to income lower as a risk.



From TransUnion site:


Q What type of information is used to generate my credit score?



A basic scoring formula uses several elements of a credit report:

*
Payment history - Accounts with a history of on-time payments are considered valuable assets that will boost a credit score.
*
Outstanding debt - High balance-to-credit-limit ratios may lower credit scores. Maintain reasonable balances on available credit.
*
Credit account history - An established credit history makes you a more reliable borrower.
*
Recent enquiries - When a credit provider checks your credit, it implies that you may be taking on additional debt. As this slightly reduces your credit score, apply for new credit in moderation.
*
Public records - Public records (including bankruptcies and legal actions) may negatively affect a credit score. All public records are kept on your report for seven years; bankruptcies, eight years.

The existing credit score in Hong Kong is largely based on: credit account information, account delinquency data, credit enquiry, history data and public record data.

[HKNewBi]

thanks for all the feedback.

Few points - my mortgage doesn't even show on the report! Besides, my mortgage (its only a small one) is less than 1/15th of my monthly income - so I don't see that being an issue.

I pay ALL my bills by autopay and also clear ALL credit card debt monthly.... Don't have any other debts.

I still can't understand why DBS would say I have a bad credit rating. All seems very strange.

[Football16]

Did you check your own report? They might be playing you at the bank?

[HKNewBi]

yeah, i downloaded it from Transunion, some online service, costs $99.

[harmon]

DBS, Hmm.. check out a news article on thestandard.com.hk about DBS and few other banks.. it was few days ago in regards to the amount of interest these banks charge, on credit card debts i think.

they have the most outrageous rates. find another bank. i personally have stopped banking with HSBC, DBS, Hang Seng. They are just crooks. Someone does not appreciate your business, take it elsewhere.

[Beuze]

They are just crooks.

A guy leaving Hong Kong without paying his debt and trying to find a way not to pay back the interest he did agree with when he sign up for the CC calling other a crook, priceless !