(This article was originally published on the 15th of January 2017 and updated on the 15th November 2019).
“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 in paying your loan on time, the better your credit history and hence the higher chance you can get your loan approved!
How do the banks/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)
So, what is CCRIS record?
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
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.
To retrieve your CCRIS report, the cost is free. You may visit the portal eCCRIS or use the kiosk in BNMLINK Kuala Lumpur, BNM Offices and AKPK branches.
Then, what is CTOS record?
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.
What is RAMCI?
Similar to CTOS, RAM Credit Information (RAMCI) 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 and 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/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 record of default from utilities companies, telco, money lenders or other consumer instalment 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.
What should I do if I have a bad CCRIS or CTOS record?
For those who have a bad CCRIS or CTOS record and is in urgent need of fund, there are certain koperasi loan that will still accept such application especially for those who works 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 claims to accept borrowers who have bad CCRIS/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 page as we share more tips on how to maintain a good CCRIS and CTOS record.
This article is prepared by Direct Lending, an online personal lending platform with the mission to provide simple, safe and affordable financing to all hardworking adults. We help borrowers to find, apply and receive financing that most suit them. Our service is 100% free.
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