HONG KONG, September 19, 2018 – A recent TransUnion (NYSE: TRU) study reveals that 140,000 consumers have self-monitored their credit report in a year, of whom 14% were in poor credit health and 3% ran the risk of declaring bankruptcy. Among those who self-monitored, 64% were born post 1980. While members of this cohort actively reviewed their status, their credit rating was below that of other age groups.
With the help of consistent self-monitoring, 44% of consumers with poor credit health improved their credit scores within three months. TransUnion encourages Hong Kongers to use its newly launched Credit Score Calculator to forecast changes in their credit score based on a range of potential future actions.
TransUnion, which manages the credit records of 5.4 million consumers in the city, has been providing credit report services to Hong Kongers for 18 years. Since 2016, TransUnion has collaborated with several financial institutions to enable them to offer their customers free credit report services.
Over one year, 140,000 consumers have used TransUnion services through these two channels to self-monitor their credit report*, of which consumers born after 1980 accounted for 64%, though they account for only 30% of TransUnion’s database of credit users. Moreover, while consumers whose credit status is near prime or subprime account for 11% in TransUnion’s database, this figure rises to 41% of those who self-monitor. This shows that while members of the younger generation are eager to monitoring their credit report, they also make for riskier borrowers.
After analyzing the background and changes in the credit statuses of the 140,000 consumers, TransUnion observed several motivations for self-monitoring:
Poorer credit ratings and an increasing bankruptcy rate among younger consumers is worrying.
“With the rising popularity of mobile payments, a cashless society can easily distract the younger generation from the importance of credit management, exposing them to higher credit risk,” said Lawrence Lo, Director, Consumer Interactive for TransUnion Hong Kong. “Meanwhile, we also notice that with shorter credit histories, higher utilization rates and higher delinquency rates for both credit cards and personal loans, the credit scores of younger consumers have been negatively affected.”
to illustrate changes in the score based on a variety of future actions, such as applications or the opening of a credit card account or new loan, a record of late payment or changing credit card limits. We strongly encourage consumers to make good use of the Calculator to gain a more comprehensive overview of their credit score, ultimately helping to achieve better credit health,” said Mr. Lo.
* Notes: From September 2016 to September 2017.