If you have ever applied for loans, you might have heard about this phrase that gives quite a headache to some people hearing it – credit history. The bigger the loan that you’re applying for, the stricter banks are going to be when they analyze your credit history. So, what exactly is a credit history?
What Does Credit History Include?
Remember those purchases you made on your credit card? You will need to pay the amount credit into your bank account routinely to maintain a good debt repayment history.
Your credit history refers to your credit payment records throughout the past months and years.
Credit history is what helps a bank determine if you are eligible for a credit card or a loan. A missed payment or two might be okay, but if your credit history leaves a trail of missed payments, your chances of getting an approved application will be a lot lower.
Importance of Credit Report and How to Determined the Score?
Banks do not rely solely on your credit report to determine whether or not they should be approving your applications. However, these credit reports are good indicators of your abilities to repay loans and keep up with your repayment schedules.
While it’s great if you are aware of your own credit history, there are also credit rating agencies out there that can help to analyze your credit history and come up with a credit report for you.
Malaysia provides three sources for you to obtain your credit report, which are the Central Credit Reference Information (CCRIS), CTOS and the Personal Credit Record. Below, we discuss the contents of these 3 different credit reports.
CCRIS Report Issued by Bank Negara Malaysia
The CCRIS reports address your unpaid loans and any loans or credit card applications that you have made in the past year.
These records are profiled across a network of financial servicing companies in Malaysia. As such, any unpaid utility bills, insurance premium payments, and banking records that you have may be brought to your attention via the CCRIS report.
More specifically, CCRIS includes any outstanding loans, summons or other forms of unpaid credits that you have accumulated in the past year. If you have any credit facilities that are being monitored closely by financial institutions, these special attention accounts will also be listed in this report.
If you have applied for loans or credit cards in the past year, these applications will be listed if they are pending or have been approved. Last but not least, CCRIS will show whether a person has been declared bankrupt.
Try not to have a negative perception of the CCRIS! Aside from these seemingly-negative information being displayed, CCRIS will make sure that any positive credit information is also displayed in the report. This includes everything from your credit approvals to your timely credit repayment history.
CTOS Report Issued by Private Company
While CCRIS derives its factual information mostly from financial networks, CTOS obtains any information contained within it from public sources that you might not be familiar with.
These sources include the National Registration Department, Companies Commission Malaysia (CCM), the Malaysia Insolvency Department and also any publications of legal proceedings in which you have appeared.
the CTOS report will contain legal notices, your bankruptcy information, and some details on your business or your role in a particular business. In the case where there has been legal actions taken against you, even the case status may be updated in the CTOS credit report!
Since these information are available to the public indefinitely, any information contained within this report dates back much longer that of CCRIS.
Personal Credit Record Issued by RAM Credit Info Sdn. Bhd. (RAMCI)
The contents available to you in your personal record can vary depending on which credit report you signed up for.
RAMCI allows individuals to choose between Personal Credit Report Basic, Personal Credit Record Plus (PCRP), and My Credit Watch.
All three types of credit reports contains the RAMCI credit information and information derived from ANGKASA Salary Deduction System (SPGA). RAMCI credit information is derived from its business partners, while the SPGA information is only available for public servants.
The unique offering from RAMCI is its development of their own credit system, known as the i-Score System. The i-Score rating is available for PCRP and My Credit Watch reports from RAMCI; it is a 3-digit scoring system that reflects the likelihood of you repaying your loans on time. The higher the score, the lower risk you pose for banks and financial agencies that you might take a loan from.
PCRP also contains your banking credit information on top of the i-Score reporting system. The last package, My Credit Watch, even monitors your credit profile daily and sends you alerts for potentially suspicious credit activities – such as credit card applications or loan applications made in your name.
This package will also contain information on individuals or parties that has made enquiries about you and your credit history, so you can ensure that you are only providing information to parties that you recognize.
Opt for More Than One Credit History Reporting System
Essentially, these three credit history reports contain different types of information – each with their own unique selling points. If you are applying for your own credit history report, it would be wise to apply for them from more than just a single source.
When you obtain at least two forms of credit history report, it will be easier for you to spot any inaccuracies. It can also help to make your credit history report more reliable for any financial institutions, since different types of information are presented for them to screen through easier. Consider applying for credit history reports this year if you haven’t already done so!
Free CTOS report Malaysia
We’ve talks about so much about credit history on above, but how do we get a Free CTOS report Malaysia? To check your credit history score and get a report. Here I recommend a famous site https://www.ctoscredit.com.my/
In ctoscredit, you can find the Malaysian leading credit agency. With the free credit report, you can get a Personal Information (NRD), Directorship & Business Interest (SSM), Litigation & Bankruptcy, Trade Referee Listings (eTR), 2 Free MyCTOS Basic Reports a year. If you like to have more (CCRIS and Score), you can also get it from as low as RM25 Only. So just look over and have a look.
I hope it helped. Thanks
