(This article was originally published on the 15th of January 2017 and updated on the 17th March 2021).
“Your loan is rejected because you have a bad CCRIS or CTOS record”. Have you been told this before by a bank officer? And you are wondering, “What is CCRIS and CTOS?”.
To answer these questions, let’s first understand how banks or financial institutions decide whether to give you a loan or not. One of the main areas they look at is your credit history, i.e. your previous loan repayment record – have you been paying on time? Or have there has been a delay or even default in loan repayment? Of course, as you can guess, the better you are at paying your loan on time, the better your credit history, and hence the higher chance you can get your loan approved!
- What is CCRIS?
- What is CTOS?
- Video: What is CCRIS & CTOS?
- What is RAMCI?
- What are the differences between CCRIS, CTOS & RAMCI?
- Will CCRIS or CTOS ‘blacklist’ me?
- Why do I need to maintain a good CCRIS and CTOS record?
- What should I do if I have a bad CCRIS or CTOS record?
How do the banks or financial institutions obtain your credit history then? They obtain this information from your credit report. In Malaysia, there are a few authorised agencies that produce credit report, this includes;
- Bank Negara Malaysia’s Credit Bureau who produce CCRIS
- CTOS and RAM Credit Information (regulated under Credit Reporting Agencies Act 2010)
What is CCRIS?
CCRIS (Central Credit Reference Information System) is a record maintained by Bank Negara Malaysia that collects and tracks your loan repayment behavior.
The CCRIS report includes:
- Details of all the loans you have with every financial institution in Malaysia (this covers all the banks and non-bank financial institutions like AEON Credit or PTPTN)
- Your loan repayment history over the past 12 months including any overdue
- Any ‘Special Attention’ loan or loan under close monitoring by the banks
- Any loan that has been rescheduled or restructured
How To Read CCRIS Report?
Think of your CCRIS report as your credit health report card. The information stated in that report determines your eligibility to apply for credit facilities such as personal loan, credit card, housing loan, car loan, etc. Let us take you through this example together. The information provided in this credit report is solely for illustration purposes and does not represent any individual.
Dina Hazlina has 2 outstanding credit facilities as shown in the outstanding credit – one credit card and one hire purchase (vehicle). The hire purchase loan was applied during January 2000 with the loan amount of RM35,000. From the report, it shows that she has an outstanding balance of RM8,500. Then in July 2008, she received a credit card facility with the credit limit of RM5,000 and as of now, her total outstanding balance is RM3,000.
For her hire purchase loan, Dina probably had difficulties in paying her car loan promptly. Due to the inconsistent payments for a few months, she has received a summon on 31 January 2011 (as shown in the column “N” – Legal Status). So, she has decided to restructure her payments again to extend the length of her loan tenure (as shown in “B” – Status).
Referring to the table, we can observe that Dina has been paying her car loan consistently from December 2016 to August 2017. How do we know that? It is because “0” means no missed payments/ arrears. Then from September 2017 onwards, Dina did not pay 3 months of instalments as shown in the November column.
Here’s a reference tip:
0 – No missed payments / arrears
1 – Late payment for 1 month
2 – Late payment for 2 months
3 – Late payment for 3 months
So when we look at her credit card record, she was paying her monthly instalments consistently except for some months. She did not pay for 3 months from March 2017 – May 2017. Dina was also 2 months late during September and October 2017.
The credit card that Dina applied on October 2006 is listed under the “Special Attention Account” (SAA). So you may ask why is her credit card categorised under SAA? Dina probably missed her monthly payments for more than 3 months on her credit card which led her to be listed under SAA.
So, you may notice that Dina has applied for a credit card facility on November 2015 and it is currently pending. In your opinion, do you think Dina’s credit card would be approved?
Below is the explanatory description for each credit information label:
(1) Outstanding Credit – This section displays the facilities that the borrower has taken.
(2) Special Attention Account (SAA) – Those that fall under this category shows outstanding credit facility under close supervision by the financial institution.
(3) Application for Credit – This section displays the approved or pending credit applications that are made over the last 12 months.
A – Approval Date / R&R – The application date when the credit facility has been approved
B – Status – This indicates the credit status for applications. For example: Outstanding (All outstanding credits obtained by the borrower), Rescheduled Credit Facility (The original payment schedule of the credit facility has been rescheduled), Facility restructured under AKPK
C – Capacity – Description of the credit facility obtained by the borrower is under his own name, joint name with another individual, name under sole proprietorship and partnership or professional body
D – Lender – Financial institution that disbursed the credit facility
E – Branch – The credit facility that was applied at
F – Facility – The type of credit facility i.e. personal loan, credit card, housing loan, etc.
G – Account/ Application Number – The reference number assigned by the financial institution for the credit facility
H – Total Outstanding Balance – The reference outstanding amount of the credit facility
I – Date Balanced Updated – The total outstanding amount of the facility
J – Limit/ Instalment Amount – The total amount approved by the financial institution or contractual obligation amount to be repaid by borrower until the total amount is settled
K – Collateral – The type of collateral or security for the credit facility
L – Principal Repayment Term – The frequency of each credit facility’s payment
M – Instalment in Arrears for Last 12 months – Refers to payment records of the credit facility. Example: 0 (no late payment), 1 (1 month in arrears), 2 (2 months in arrears) and so on
N – Legal Status – The legal action taken against the borrower because of defaulted payments
O – Date Status Updated – The latest date of the legal action status
So, when you apply for a bank loan (whether it is a mortgage or personal loan), the bank will obtain and go through your CCRIS record to assess your past repayment behavior.
Although each bank practices different credit criteria, they will likely consider it as a bad CCRIS record if you have not been paying your loan for 2-3 months within the past 6 months or if you have a loan under ‘Special Attention’, it may affect the approval of your loan application.
For Co-operative or koperasi loan (pinjaman koperasi), given the repayments is via direct salary deduction, the chances of your application being approved is higher although you may be 2-3 months overdue on your outstanding payments.
How & Where to Get CCRIS Report?
The cost to retrieve your CCRIS report is free. Only the individual itself is allowed to request to their credit information from the Credit Bureau. Here are a few ways to obtain your CCRIS credit report:
- Via Online – You may apply and receive your report from the comfort of your own home.
- Fill up form (Scan this QR code or click -> https://bnm.my/ccrisform)
- Prepare your documentation (I.C for residents and passport for non-residents, 2 supporting documents such as driving license, utility bill, EPF statement or others)
- Complete your application form and send it -> https://telelink.bnm.gov.my
- Via Branches – Visit the kiosks located at BNMLINK Kuala Lumpur, BNM Offices, and AKPK branches to retrieve your credit reports. Just don’t forget to bring along your MyKad (I.C.) or any other supporting documents that help you to verify your identity.
What is CTOS?
In simpler terms, CTOS is your credit health report card.
CTOS collects information from the Malaysia Insolvency Department, National Registration Department, Companies Commission Malaysia (CCM), Registrar of Societies, publications of legal proceedings and etc. The CTOS report includes the bankruptcy status, legal action and case statuses, business ownership and etc.
Any poor repayment conduct on your loans, utility bills or phone bills, any litigation action against you including bankruptcy will be shown in the CTOS report. As you can expect, situations as such will reduce your chances to successfully obtain a bank loan.
To obtain your free Basic CTOS report, you need to register to obtain a CTOS User ID. Then, you may retrieve your report from the CTOS application.
Video: What is CCRIS & CTOS?
What is RAMCI?
Similar to CTOS, RAM Credit Information (RAMCI) (now known as Experian) is also a credit reporting agency that provides credit information and credit score.
It also includes information such as legal and bankruptcy information, trade reference and most importantly it also informs you if a third party enquired information about your credit history. This might be beneficial in terms of early fraud detection.
What are the differences between CCRIS, CTOS & RAMCI?
Generally, CCRIS, CTOS, and RAMCI are similar whereby these reports show the individual’s credit history. Banks will go through not just your CCRIS record, but also CTOS or RAMCI record in their credit assessment.
Having said that, CCRIS is not the same as CTOS or RAMCI. The main difference is that CCRIS is managed by Bank Negara whereas CTOS and RAMCI are managed by a private company. Besides that, CCRIS obtains information from financial institutions whereas CTOS and RAMCI obtain information from public sources and also have records of default from utility companies, telco, money lenders, or other consumer installment loan providers (e.g. Courts, Singer, Coway).
Will CCRIS or CTOS ‘blacklist’ me?
No, neither CCRIS nor CTOS will blacklist you. They simply provide your credit records to financial institutions, including Co-operative (Koperasi) for the purpose of credit assessment before approving your loan application. So, CCRIS or CTOS record is purely an input for financial institutions to assess your creditworthiness and to decide whether to give you a loan or not.
Why do I need to maintain a good CCRIS and CTOS record?
Your CCRIS and CTOS credit record will be used by financial institutions to justify your credit character when you apply for a credit facility such as credit card, personal loan, housing loan, car loan, etc. Your repayment behaviour would help banks to decide on whether to approve or reject your loan, interest rate, loan tenure, loan amount and so on. If you have been paying your loan commitments on time, there should not be a problem for your loan to be approved.
Plus, banks will also look into your CCRIS and CTOS report to calculate your Debt Service Ratio (DSR) before deciding on the approval of your loan. For instance, if your DSR exceeds 60%; chances are your loan might either get rejected or it would be approved at a lower loan amount.
What should I do if I have a bad CCRIS or CTOS record?
For those who have a bad CCRIS, CTOS record or listed under SAA and AKPK and is in urgent need of fund, there are certain koperasi loans that will accept such application especially for those who work in the government sector. Koperasi loans are less stringent because the repayment is processed through direct salary deduction and hence, the risk of repayment is lower. This is still a safe and legal way to obtain some emergency funding. While there are some moneylenders out there who claim to accept borrowers who have bad CCRIS and CTOS, please be aware of the terms of the loan!
The best way is still to maintain a good CCRIS and CTOS so that you can get any financing when you need to. Follow us on the blog or our Facebook as we share more tips on how to maintain a good CCRIS and CTOS record.
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