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What is CTOS & CCRIS? How to Improve it?

Updated: Feb 13, 2023




When you wish to apply for a financial product from a bank, such as a personal loan, mortgage, car loan, or credit card, your credit score is crucial.


Your credit score is used by banks, financial organisations, and even companies to assess the veracity of your financial situation. It aids in their comprehension of the dangers they can encounter if they choose to lend you money.


A consumer's credit risk is indicated by their credit score. The score is between 300 and 850. The lesser the credit risk, the higher the score. As most banks and credit providers would see you as a prime customer, having a strong credit score might be quite advantageous for you. Your chances of acquiring a loan can be improved by having a good credit score, which can also result in lower interest rates and quicker loan approval. The better your score, the more likely it is that your applications will be accepted. In essence, it serves as a gauge of your financial situation.


Not only that, but it's also crucial to keep in mind that the negative information and poor financial history on your credit report will have a significant impact on your credit score. If you have a pattern of making payments late or infrequently, banks and other financial institutions may be unforgiving.


It gives the impression that you are not accountable for your financial obligations. Consistent monthly repayment keeps your credit score in good standing. As a result, make sure to pay all of your bills on time.


In this article, you will discover more about CCRIS and CTOS and how they may affect your home-buying experience.



What is credit checking?


Credit checking is the process of examining someone's credit history, including one's own. For instance, credit checks are frequently required prior to the issuance of loans. The creditworthiness of a consumer is indicated by a number between 300 and 850 called a credit score. The better a borrower seems to potential lenders, the higher their score.



A credit score is based on a person's credit history, including the number of open accounts, total amount of debt, history of repayment, and other elements. Credit scores are used by lenders to determine the likelihood that a borrower would make timely loan repayments.


When you wish to apply for a financial product from a bank, such as a personal loan, mortgage, car loan, or credit card, your credit score is crucial. Your credit score is used by banks, financial organisations, and even companies to assess the veracity of your financial situation. It aids in their comprehension

of the dangers they can encounter if they choose to

lend you money. The better your score, the more

likely it is that your applications will be accepted.

In essence, it serves as a gauge of your financial situation.


What are CCRIS and CTOS?



The Central Bank of Malaysia, or Bank Negara Malaysia (BNM), owns and operates the CCRIS, which stands for Central Credit Reference Information System. They offer credit reporting and are widely used by financial institutions to assess an applicant's creditworthiness. All Malaysian borrowers of participating financial institutions are subject to credit-related data collection by CCRIS. These include people, firms (including sole proprietorships and partnerships), businesses, professional associations, societies, and governmental organisations. All licensed commercial banks, Islamic banks, investment banks, development financial institutions, and many other financial institutions, including insurance companies, payment instrument issuers, rehabilitation companies, building societies, credit leasing companies, and government agencies, are included in the list of participating financial institutions.


CTOS is stands for Credit Tip-Off Service is a credit reporting agency that collects and compiles data from legitimate public sources and authorised government agencies in order to provide information about an individual's or company's directorship and business interests, litigation and legal information, banking payment history (CCRIS summary, details, and derivatives), and trade reference details. MyCTOS Basic Report and MyCTOS Score Report are generated by CTOS. They get their information from a variety of public sources, including the National Registration Department, Registrar of Societies, Malaysia Insolvency Department, Companies Commission Malaysia (CCM) Bankruptcy, legal action, and even case statuses are examples of credit-related information that will be included in the CTOS credit report. It will also include information about an individual's business exposure, ownership, and directorships, if any. A CTOS score is computed using credit data from both CCRIS and CTOS's database. It ranges between 300 and 850.



What are the differences between CTOS and CCRIS?


Management

CCRIS is managed by Bank Negara Malaysia, whereas CTOS is managed privately.


The manner in which the information is compiled

The information for CCRIS comes from financial institutions. CTOS, on the other hand, obtains credit-related information from public sources.


The types of information in the credit report

CCRIS contains not only a person's negative credit information, but also positive information such as credit approvals and positive repayment history. One common misconception is that CCRIS will blacklist you if you have a poor repayment history. However, CCRIS does not offer any opinions or blacklist any individuals; instead, CCRIS provides factual data that financial institutions can use. Furthermore, credit facilities that have been fully settled are not included in the credit report.


Bankruptcy, legal action, and even case statuses are examples of credit-related information that will be included in the CTOS credit report. It will also include information about an individual's business exposure, ownership, and directorships, if any.


Source from : https://www.directlending.com.my/blog/infographic-ccris-ctos-difference



How will these reports affect you when purchasing a new house?

Banks use it to make decisions.

When you apply for a home loan from a bank, it will go through a credit approval process to look into your credit history before they decide whether to approve or reject your application. Before making a decision, the bank to which you applied will review your credit reports. Banks will usually approve your application if your credit reports are in good shape. However, if they notice missed payments on your credit report, banks are unlikely to approve your application.



Displays Your Credit History

Consider it similar to your browser history, but one that you cannot easily change or delete. Both CCRIS and CTOS will display your credit payment ability as well as all of your financial obligations. If you took out a loan with PTPTN, you should pay it back on time because any missed payments will appear on your credit report. This will then affect your chances of getting a loan or a credit card. As a result, it is critical that you ensure your credit report is up to date and in good standing!


 

Conclusion

Are you thinking about buying a house in Malaysia? If you're like most individuals, the last barrier to buying a home will be your ability to obtain a loan from a bank. This means that your loan application will be denied and you won't be able to obtain the property if your CCRIS, CTOS Malaysia, and final credit score aren't favourable to a bank.


Therefore, your reports should ideally give the banks you are seeking for a home loan from assurance that you are well-versed and in control of your finances. Additionally, they will support the ultimate credit score that the bank will provide you. As a result, they are able to approve your house loan because they can see that you are a reliable payer of debts and monthly obligations.


Feeling lost on how to handle credit report checking? Contact Seri Pajam right away by filling out the contact form and requesting assistance with credit-related issues. Who knows, you might be eligible to buy your first home! check out the brand new affordable home here at http://seripajam.com.my/onlinesale

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