跳至主要内容

Why having a good credit history pays

image of risk based pricing in Hong Kong personal loans

Hong Kong personal loan issuers use credit risk as a major input into their pricing decisions, as can be seen in the graph below. Lenders don’t share their exact pricing with us, but by using annuity curves and the data we do receive, we’re able to proxy the fully loaded costs.

Graph showing the avg. APR risk tier, for personal loans opened in Q3 2017

 

And those costs, very clearly, move with risk. A good credit history usually leads to a lower risk score, which in turn has the potential to enable cost savings. A consumer wanting to borrow $75,000 over two years can expect to pay $5,097 per month at the median rate if they are scored subprime; $3,365 if they are scored prime; and $3,324 if they are scored super prime—a saving of up to $42,500 over the duration of the loan.

Consumers who are planning to apply for a loan should prepare themselves by taking steps to get their credit report in order. This starts with building a good credit history. While it is important to ensure current obligations are all being paid on time, staying within credit limits, not making too many new applications too quickly, and maintaining long-standing accounts also help to improve credit history.

LEARN MORE
For more insights into the Hong Kong consumer credit market, read TransUnion’s latest quarterly Industry Insights Report and other articles here.

聯絡我們

收集個人資料聲明

環聯資訊有限公司(”環聯”)需要取得您的同意,願意透過電郵等電子方式偶爾接收有關環聯及其附屬公司或合作夥伴的資訊。資訊可能包括新聞、更新、服務、活動和特別優惠等。如閣下不希望接收有關資訊,您可以隨時於任何環聯電子郵件底部的連結取消訂閱。

請閱讀我們的 私隱政策,當中解釋了我們的工作、我們如何收集和使用您的個人資料以及您如何行使您的隱私權。

很抱歉,我們暫時無法處理您的要求。請稍後再試。