What is Credit Data Smart? Beginner’s Guide for Credit Data Smart

Banks and money lenders that offer personal loan services will make reference to customers’ credit reports to assess their creditworthiness for credit approval.

How could the banks and money lenders obtain my credit report?

Customers’ credit reports are provided by consumer credit reference agencies. Previously, there was only one credit reference agency providing credit reports in Hong Kong. Since “Credit Data Smart” has been introduced, there are now more than one credit reference agency offering credit reference service.

What is “Credit Data Smart”?

“Credit Data Smart” refers to the Multiple Credit Reference Agencies (“MCRA”) Model which is fully supported by the Hong Kong Monetary Authority and Industry Associations. With “Credit Data Smart”, participating banks and money lenders upload customers’ credit data to the Credit Reference Platform for credit reference agencies to analyze and prepare reports.

How secure is the Credit Data Smart Credit Reference Platform?

All data stored on the Credit Reference Platform is encrypted according to international standards to ensure data security. All participating institutions are required to undergo an approval process by the Industry Associations and comply with requirements of corporate governance and personal data protection to safeguard personal data.

What are the advantages of introducing multiple credit reference agencies?

Introducing multiple credit reference agencies helps promote industry competition, enhance the service quality of credit reference agencies, and ensure the smooth operation of the consumer credit reference market. If one agency experiences system failure, or is unable to provide services due to unforeseen circumstances having multiple agencies in the market ensures the continuity of consumer credit reference services, minimizing the impact on consumers.

If consumers need to apply for a loan in the future, it is necessary to be aware of whether the bank or money lender has joined “Credit Data Smart” and keep track of credit reports.

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