What is TU? - CashingPro

WHAT IS TU?

What is TU?

”Will you review my TU record? ”,” Will it effect my TU grade? ”………

Actually, what is TU?

Well, the full name of TU is TransUnion(環聯資訊). It is the leader management company of world’s credit and data. In 1982, it established a branch office in Hong Kong.

It is the only one consumer’s credit information agency in Hong Kong that provides credit reporting, scoring and reminder services. In 2003, it created the first consumer positive credit database in Hong Kong to hold registered banks and Loan information provided by the finance company. Its database currently contains a credit record of 5.4 million Hong Kong consumers. It is the only one agency which is provide the above services in Hong Kong.

TransUnion(環聯)

About TU credit report

The TU credit report primarily records your loan activities. For example, your loan company name, loan amount and loan amount, and your loan repayment records. If you have a record of defaulting on loan debt, bankruptcy, legal action related to debt recovery, or even applied the loan or credit card from bank or loan company.

These records will appear in your TU credit report. The TU credit score will be created by your overall loan situations and history.

In addition, TU credit reports will include information that is not related to loans or credit cards. For example, your personal data and public records, such as: address, telephone and civil litigation.

Maybe you want to ask, if I don’t plan to apply for a loan or credit card, may I no need to pay attention to my TU credit report?

You are wrong !

About TU credit report

Because it except records your application of loan or credit card, your TU credit report maybe checked by purchasing the car, house, immigrate or even change jobs.

For the above situations, it also to be check your creditable level. They need to know your past loan records to determine whether you are a trustworthy person and decide whether to approve your loan, credit card application, purchase the house or immigration.

The TU credit report will save your positive and negative information. Taking the case of loan for an example, the positive information refers repayment on time; the negative information refers arrears of repayment, or even abandonment of repayment. In general, the negative information in the TU credit report will be deleted five years after you have repaid the account, and the bankruptcy record will be kept for 8 years.

Instead, positive information is kept in the record report until the relevant account is cancelled five years after you cancel it. As for the positive information of the revolving credit account (such as credit card), it will remain in the report until you cancel the relevant account.

How can I get the TU credit report? You can go to TU (TransUnion)’s website, Then you can find out the relevant information and subscribe to the details of the TU credit report. If you find that there is some wrong information in the TU credit report, you have the right to add a short statement in the TU credit report and explain some details (such as the time of loans and repayment records, etc.). These statements will be recorded in your TU credit report and will be visible to anyone who has access to the report so that they can get a better understanding of your loan status and creditable level.

TU Credit Score and Rating

If you have never been apply with a credit card, a personal loan, a car loan, a mortgage loan, or even an immigration or some civil lawsuit, your TU credit report is nothing.

Instead, if you have done one of the above (such as applying for a loan or a credit card), your credit report will be officially “started.”

How is the TU Credit Score calculated?

The Credit Score is mainly to analyze your past loan records and then calculate the score.

TU Credit Score and Rating

As mentioned above, if you have any loan account (such as a personal loan, a car loan, a mortgage, etc.) or have applied for and used a credit card, your TU credit report will begin to be recorded.

The loan record includes the your loan period, the type of loan account, the loan repayment record, the balance of your total loan and credit card, and the newly opened loan account. These loan records are calculated in your TU Credit Score. The TU Credit score is divided into 10 levels, — grade A to J grade. A is the highest, and J is the lowest.

The most important factor to effect the TU Credit Score is the repayment history of loan balance or credit card balance. Because the repayment record is the best reflection of a person’s integrity and responsibility. It indirectly shows you how to manage your finances, such as whether you often have a record of overdue payments. So if you have a card/loan right now, please remember repayment on time and keep a good loan record. In the future, if you want to change jobs, apply for a credit card or loan, buy a car to buy a building, or even immigrate, it will be of great help. Of course, in addition to the loan repayment record, the balance of the loan or credit card is an important part. Don’t think that you have been paying back on time, you can continue to increase your credit card spending or loan amount, because when you have too much balance, the monthly repayment will be increase. It will affect your repayment on time or not.

TU Credit report and score are extremely important for every bank and loan company. Because it is an important criterion for their approval of loans or credit cards. Therefore most banks and loan companies(including us: Cashing Pro) will work with TU (環聯資訊 , TransUnion ) to make it faster and more accurate to review their TU credit reports when reviewing guests.

How to improve/maintain a good TU credit rating?

Method 1: Don’t just repay “Min Pay” (the minimum monthly repayment amount of credit card)

Method 1: Don’t just repay “Min Pay”

Let’s take the balance of credit card as an example. Most of Hong Kong people like to adopt credit cards for shopping. Sometimes they will buy the product which is their favorites. However, after a month, it is time to repay the balance of cards! When a credit card company issues a monthly statement, it usually shows “the minimum repayment amount” to client, we call this is “Min Pay”. But in fact, “Min Pay” is the trap of falling into the credit card company!

Because the interest on the balance of credit card is calculated by compound interest, interest will grow like a snowball. When you think you can only pay “Min Pay” on this month, and there will be no problem in repaying the principal next month. But in fact, the interest rate for one month has been exaggerated very much. Also, it doesn’t has too many people can repay all principal in one month! So when you see the total balance of credit card, you will be “no money” to repay the total balance. In this moment, when you delay one day to repay the balance, it will be effect your TU credit score and report. Even if you repay all balance of credit cards afterwards, your credit history has been tainted, and it is maintained for 5 years!

Start from today, you can’t only pay “Min Pay” for credit card’s balance. Cashing Pro has been set up a ‘credit card loan’ for you. The interest is calculated on a single interest basis, which saves more interest than the average credit card compounding calculation!

Apply Now Learn More

Method 2:Don’t apply for too many credit cards in a short term

Credit card companies often offer a series of offers on certain holidays (for example, Christmas) to attract more people to apply the credit cards. According to a report published by TransUnion in May 2017, Hong Kong people have an average of 4 credit cards.

Method 2:Don’t apply for too many credit cards in a short term

Although offer is very attractive, the card issuer will check the applicant’s TU credit report when processing the credit card application and have an opportunity to influence the TU credit score. Therefore, please do not apply for a few or even more credit cards in a short term, so as not to cause the TU (TransUnion) to misunderstand your original intention / financial status. Because this means that the applicant has the opportunity to temporarily need a large amount of funds for emergency response, and the financial situation on behalf of this person is extremely suspicious. Even if you pay back the balance of credit cards on time, but you just only pay “Min Pay”, you will have an opportunity to influence your TU credit score because long-term payment of “Min Pay” will make the total interest become bigger and bigger, and you will not be able to bear the huge Repayment amount.

For us, 1-2 credit cards are basically enough

Therefore, we should choose the most suitable credit card. For us, 1-2 credit cards are basically enough. If you really need to apply for a few credit cards, it is recommended to apply for the second one after a few months after applying for the first one, so you don’t have to worry about affecting your TU credit report.

Method 3: Try to pay by credit card

Many Hong Kong people have some wrong knowledge of loan and TU credit report, which has affected their TU credit scores and report, making their subsequent borrowing applications unsuccessful.

Method 3: Try to pay by credit card

A lot of people consider adopt cash to purchase everything will let the TU credit repot be the best result. Because they didn’t use any credit cards or loan to buy anything. Some people worry credit cards will let them purchase so many things. When they pay the repayment amount for credit card company, it will be so hurt. Therefore they don’t want to apply credit card.

However… then! Yes! wrong! Of!

Let’s take an example. It has two kind of people, A and B. A has a good repayment record. B didn’t apply any loans or credit cards. B’s integrity is dubious. So which kind of people you think is more be credible? Because B’s TU credit report is nothing. Bank and loan company can’t adopt TU credit report to analysis his past loan record and repayment record, therefore they don’t know his integrity. It will effect their loan and credit card application result or APR. In bank, loan company and credit card company’s position, if this kind of people apply the loan or credit cards, it has risk.

If you are B and you want to apply loan , change the jobs, purchase car or house, even immigrants, please apply a credit card and try to use more credit card to let your TU credit report has a good grade. If you can repayment on time, the loan record will be good, your TU credit score will be upgrade too.

Method 4: Check the credit report regularly

Although so many bank or loan company will update the consumer’s TU credit report to TransUnion per month.

TransUnion(環聯)

But there maybe has some errors (for example, when you have repaid the loan. But the bank, loan company or TransUnion may not be updated to your TU credit report immediately on 1-2 days and prove that you have cleared the loan.) In addition, the human error is always be appear. (for example, the bank staff filled in your repayment date wrong, so that others people thought you had late repayment.) When you apply for a credit card or loan next time, your TU credit report maybe not accurate.

If the errors’s bad records are not updated, it will affect your TU credit scores, which is extremely unfair. Therefore, we should check the credit report regularly. When any errors or doubts are found, we should immediately submit the requirements to TU(TransUnion) and make corrections. In addition, consumers can also add some short statements in the TU credit report (for example, if something happens in your home, you will need to raise a lot of money in a short time), so that other people or companies who check your TU credit report can see it. It is better to understand your loan situation and integrity.

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