特別通知What is a credit score? The new credit scoring standard helps reflecting personal credit status and is in line with international standards
Credit scores are closely related to daily lives, but borrowers usually become aware of the importance of credit scores when applying for loans, such as mortgage loans, business funding, credit card applications and car loans. Often, borrowers may urgently need money when they apply for loans. However, credit providers will follow their standard procedures to review the borrower’s loan eligibility by evaluating the credit scores, searching for relevant data and sometimes categorizing the loan applications for borrowers.
In addition to credit providers, recruiters and investors of corporate mergers and acquisitions may also consider the background of the candidates or potential partners before making decisions. Therefore, it is necessary for everyone to manage their credit scores properly to avoid discovering anomalies, which may cause inconvenience in their lives.
Credit Score and Calculation Criteria
A credit score objectively presents the financial credit risk and default probability of a designated individual in a numerical form, thereby estimating the likelihood of the credit score holder defaulting on future repayments. There are many types of credit scores around the world, and different calculations of credit scores facilitate objective judgments by lenders or reviewers based on the principle of accurately presenting the credit status of a borrower.
Most international credit reference agencies use a three-digit credit score, highlighting the influence of three-digit credit scores around the globe. For this reason, Nova Credit (NOVA), as a credit reference agency, has brought new reforms to credit scores in Hong Kong, conforming to international standards and precise application and using three-digit credit score as the new standard for credit evaluation. The NOVA Credit Score ranges from 300 to 800, which is in line with the world’s common industry perception and more accurately presents credit status. The credit score is calculated based on complex statistical models and information in the credit report, not only considering the current credit situation but also taking into account the credit history.
| Credit Score | Repayment Probability* |
| 711 or above | 99.86% – 100% |
| 690 – 710 | 99.71% – 99.85% |
| 655 – 689 | 99.02% – 99.70% |
| 650 – 654 | 98.84% – 99.01% |
| 636 – 649 | 98.12% – 98.83% |
| 625 – 635 | 97.27% – 98.11% |
| 605 – 624 | 94.69% – 97.26% |
| 581 – 604 | 88.59% – 94.68% |
| 371 – 580 | 0.53% – 88.58% |
| 300 – 370 | 0.00% – 0.52% |
What credit score does credit reference agencies offer?
Their main purpose is to provide reliable credit references for financial institutions and credit providers, so the score is calculated based on multiple data points, which can include:
• Payment History
• Debt Burden
• New Account
• Credit Mix
• General/Enquiry Records
Financial institutions may have different interpretations of credit scores even though credit reference agencies provide definitions for their credit scores, which can be considered as references only. Financial institutions may consider a number of factors for making judgments. Therefore, the credit score is a basic reference for credit providers or those in need to judge the basic credit status of the borrower.
The credit scores are calculated using the credit data of individuals based on the credit activity records of the past 24 to 36 months.
Therefore, the credit scores may be adjusted irregularly due to increased credit activities and repayment habits.
Stay up-to-date with new credit score information
With the introduction of “Credit Data Smart” (Multiple Credit Reference Agencies Model) in Hong Kong, the consumer credit reference industry in Hong Kong will undergo new service experiences and reforms. As a selected credit reference agency under Credit Data Smart, NOVA will launch more diversified, innovative, and high-quality credit reference services to enhance the customer experience, especially in credit scoring. If you want to receive updates and promotions, be sure to follow NOVA’s news releases closely!
Download NOVA PASS for Free Credit Report and Credit Score Now
Further reading: What is a Credit Report? An article analyzing its uses for checking and managing your credit, with 2 practical tips included.
Frequently Asked Questions (FAQ)
What is a credit score?
A credit score is one of the main factors that financial institutions consider when making lending decisions. The higher the score, the greater the chance of being approved for a loan and getting a better interest rate.
What combination of elements is credit score calculated from?
The credit score of Nova Credit, a credit reference agency in Hong Kong, is calculated based on sophisticated statistical models and 5 main categories of information in credit reports, including payment history, debt burden, new account, credit mix and general /enquiry record.
How to check the credit score?
The credit score in credit report can be provided by a credit reference agency. The process must be operated in accordance with the relevant guidelines of the Hong Kong Personal Data (Privacy) Ordinance. Generally, credit scores can only be accessed by the credit score owners with their consent, and identity verification is necessary, such as facial recognition and ID document verification. In addition, according to the regulations and code of practice, credit providers (such as banks and financial institutions) and designated persons can also access credit information in specific circumstances, for example, by court orders.
Can Credit Scores Be Cleaned up and Improved? The calculation of credit scores is complex and not allowed to achieve the goal of cleaning up or deliberately distracting credit scores through disruptive or evasive means. To have a good credit score, individuals should strive to start from their daily financial management, regularly check their credit reports, live within their means, cultivate good borrowing and repayment habits, and pay attention to the latest news and public education activities of credit reference agencies. It is also important to manage personal credit records well and seek advice from credit reference agencies or relevant professionals if any problems are found.
The above information is for reference only and does not constitute any legal, financial, investment or other professional advice. Before making any decision, you should seek professional advice from third parties.
