You may have heard of the two terms CCRIS and CTOS when you opt to apply for a financial loan. For first-time borrower, you may find yourself never quite understand what those terms mean or the difference between the two. In Malaysia, CCRIS and CTOS are the two major credit reports which compile the database of your credit history that defines your financial health. A credit report helps banks and other financial institution to decide whether to approve or reject your loan application. Therefore, it is important to know what is CCRIS and CTOS and always ensure that you have a good credit score before applying for a loan.
What is CCRIS?
Bank Negara’s Central Credit Reference Information System (better known as CCRIS) is an important system created by Bank Negara Malaysia that enables financial institutions and lenders to effectively assess the creditworthiness of a recipient through recorded financial history. It served as an essential part of the early stage for borrowers to own their dream home. Understanding financial jargon isn’t easy. Let me guide you through the steps of registering a FREE credit report, understanding the meaning of your report and what it means to you, and how can you improve your credit score.
CCRIS is a centralized database collected by Bank Negara Malaysia through monthly updates by relevant institutions such as licensed commercial banks, insurance providers, investment banks, utility companies, credit leasing companies, government agencies, and payment instrument issuers. A CCRIS report can only be accessed by individuals (not more than once in every three months) and financial institutions upon request.
How long do the records keep?
Repayment records that were shown on the credit report will be broken down into a span of 12 months, after which the older data will be removed. You will be able to get information about the total number of applications you have submitted for all financial products in the last 12 months with each detailed status.
What does a CCRIS credit report show?
A CCRIS credit report shows all outstanding credit(s) obtained by the borrower, including those relevant businesses, commercial loans, and joint borrowing. Outstanding loans like home loans, personal loans, credit cards, and overdrafts, on their corresponding outstanding amount, late payments, credit limits, and details of legal cases. The report also shows special attention account(s) to outstanding loans (usually the Non-Performing Loans) that are under the close supervision of a participating financial institution. Other than that, the credit report also shows all application(s) for credit which was approved in the past 12 months or those under pending applications for credit.
How do I get my CCRIS report?
It is good to stay up-to-date with how your CCRIS report looks if you are considering buying a new house. The good news is that CCRIS report is completely FREE. You can request a copy of your credit report online via the eCCRIS service. This method is hassle-free and absolutely simple and secure to access. However, you are required to do an initial registration in person at any branch of BNM before you can check your CCRIS report at your leisure. Alternatively, you can request a copy of your credit report at the BNM Head Office and Regional Office with your application form, MyKad, and other supporting documents such as passport or driving license. You may also access and print your credit report using the credit kiosk at any participating BNM branches. Lastly, you can also mail, email, or fax your request to BNM TELELINK with all supporting documents as part of your correspondence.
Jabatan LINK dan Pejabat Wilayah
Tingkat Bawah, Blok D
Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur
Fax No: +603 2174 1515
It is important to know that the CCRIS reports do not “judge” your finances or blacklist you. It does not give any opinion on them. It is entirely up to the bank to perceive your credit report based on all evidence like steady repayment schedule, credit card history, stable debt ratio, minimal defaults, or any missed payment. Ultimately, the loan application is still down to the bank or financial institution to make the final decision. Though, it is worth knowing that rejection from a loan application will be shown on your CCRIS report for the next 12 months. Start checking your CCRIS score here.
What is CTOS?
CTOS is operated by a privately-owned company and archives the entire credit history of an individual or company. A CTOS report is widely used by banks and financial institution in Malaysia to assess the creditworthiness and repayment capability of the borrowers. CTOS report is derived from various sources in the public domain such as National Registration Department, Registrar of Societies, Companies Commission of Malaysia, Government Gazettes, Legal Notices in Newspaper, and information provided by creditors.
Similar to CCRIS, CTOS report simple archives facts about an individual or company’s financial health and does not blacklist them based on credit history. A CTOS credit report indicates whether the subscriber has ever declared bankruptcy in the past, what legal case was filed against him, business ownership, and if he has been a director of a business. The 5 factors which sum up CTOS score are payment history (45%), outstanding amounts (20%), length of credit history (7%), credit mix (14%), and new credit (14%). Anything above 718 is considered great while scores between 651 and 717 are considered fair. However, if you score anything below 650, it will be hard or impossible for you to obtain any loans from the bank. Check out the 5 factors that can impact your credit scores.
On the side note, CTOS also provides reason codes in the report. Every loan that get rejected will be given a reason code which explains the causes. CTOS’s long-term plan is to add a service on its website to help subscribers to match the best loan or credit card offer according to their CTOS score. Nevertheless, the company’s main objective is to educate the consumer on the importance of keeping a good credit rating score.
How long do the records keep?
Unlike CCRIS report which only shows up to past 12 months reports, CTOS credit report archives the entire credit history of an individual or a company.
How can I improve my credit score?
It is crucial to pay your bills on time. Do not wait till more than two months or it will affect your payment history. Your credit score may also be affected if your guarantee pays late because you are responsible for those payment histories as well. The more information banks have, the more comfortable they are approving your loans. Being said that, it makes sense to start with a credit card once you graduate to build your credit history. Having no credit history is just as bad as having a bad credit score. In addition, stop applying for new loans if you were continually rejected. Instead, work on fixing your credit score.
How do I get my CTOS report?
Anyone in Malaysia can access to CTOS report for FREE after registering themselves on the website or mobile application. However, you are required to pay for a more in-depth MyCTOS score Report at RM25. You can register here or download the CTOS app from App Store or Google Play Store. Otherwise, you may also opt to do a biometric registration with your MyKad at CTOS office. Check your CTOS score here.