Survey Reveals Hong Kongers Have Strong Credit Habits,
Yet Remain Confused About Credit Basics
HONG KONG, Sept 25, 2017 /PRNewswire/ -- A recent survey by TransUnion (NYSE: TRU) revealed most Hong Kongers act responsibly when it comes to credit card repayment habits, yet are still confused about credit basics.
The survey found Hong Kongers act responsibly when it comes to managing their credit cards and understand how those accounts affect their credit. In fact, more than two-thirds (67 percent) correctly reported that making just the minimum payment on a card can have a negative effect on credit. Likewise, 90 percent of credit card holders reported they always pay their balances in full and 88 percent of credit card holders repay their balance either before the due date but not immediately after a transaction is made or right on time.
"As Hong Kongers are using credit cards more frequently in everyday life, positive financial habits are extremely important," said Lawrence Lo, Director, Consumer Interactive for TransUnion Hong Kong. "Credit cards have become an integral part of daily life in Hong Kong, so we are very pleased to see that in general, Hong Kongers are responsible in paying off their credit card balances."
95 percent of adults own at least one card and a previous TransUnion study, released in May 2017, also found that consumers own 4.6 cards under their name on average.
Despite their commitment in paying off credit card balances, most Hong Kongers still neglect other important credit habits, such as monitoring their credit report for errors. According to the survey, more than 40 percent (43 percent) have never checked their credit report and 45 percent either believe their credit score "doesn't really matter" or are neutral.
Many still make poor decisions about when and when not to open new cards and are more easily swayed by financial rewards and other perks than crucial credit features.
When applying for a new credit card, respondents were asked to rank various factors based on their importance. The majority of adults (51 percent) ranked privileges and discounts as one of the top three most important factors, followed by spending rebates (47 percent) and welcome gifts (45 percent) in the same category. Meanwhile, a smaller portion of respondents ranked security features (39 percent), credit limit (22 percent) and interest rate (17 percent) as one of their top three most important factors for new applications.
The survey also revealed that Hong Kongers remain misinformed about a number of fundamental aspects of credit scoring, particularly on credit card usage behaviors.
"Despite from making some positive progress on credit awareness, Hong Kongers are still learning about the nuances of credit management," said Mr. Lo. "As a leading global risk and information solutions provider, we are committed to helping them to establish sound financial management and achieve life goals with healthy credit habits and ongoing credit education."
To help encourage credit literacy and combat confusion, TransUnion offers the facts behind the six most common credit myths in Hong Kong:
You can learn more about how to maintain credit health by visiting transunion.hk.
About the Survey
All figures, unless otherwise stated, are from a YouGov Plc survey conducted on behalf of TransUnion. Total sample size was 1001 adults. Fieldwork was undertaken between 25/07/2017 - 02/08/2017. The survey was carried out online. The figures have been weighted and are representative of all Hong Kong adults (aged 18+).
About TransUnion (NYSE: TRU)
Information is a powerful thing. At TransUnion, we realize that. We are dedicated to finding innovative ways information can be used to help individuals make better and smarter decisions. We help uncover unique stories, trends and insights behind each data point, using historical information as well as alternative data sources. This allows a variety of markets and businesses to better manage risk and consumers to better manage their credit, personal information and identity. Today, TransUnion has a global presence in more than 30 countries and a leading presence in several international markets across North America, Africa, Latin America and Asia. Through the power of information, TransUnion is working to build stronger economies and families and safer communities worldwide.
We call this Information for Good. transunion.hk
For more information, please contact:
Weber Shandwick Hong Kong
Juliana Li / Winky Chow
jli2@webershandwick.com / wchow@webershandwick.com
2533 9973 / 2533 9923