You want to apply for a car loan or home loan, but you keep getting denied. This may be because you have a poor credit rating or the financial institution does not have your credit history, so they choose not to approve the credit application.
There are two major credit ratings in Malaysia, CCRIS and CTOS, and when applying for credit cards, personal loans, car loans, home loans and other financial matters, banks will first refer to the applicant’s CCRIS or CTOS report.
CCRIS is a credit rating report compiled by the National Bank, while CTOS is a credit rating report provided by Credit Intelligence Services Sdn Bhd.
Here you will find 5 things that affect credit rating and the percentage of them.
1. Repayment history (40% of the total)
This looks at your payment performance over the past 12 months, such as whether you pay your credit card bills on time every month. If you are often late in paying your bills, this will affect your credit rating.
2. Credit portfolio and amount of debt owed (30% of the total)
The type of loans and credit will also affect the credit rating. Generally the types of loans and credit include secured loans (car loans and home loans) and unsecured credit (credit cards and personal loans). The amount of outstanding debt is also a consideration.
3. Length of credit history (10% of the total)
The length of time a particular credit has been held, such as how many years credit cards have been held, how many years the loan has been repaid, etc.
4. Application for new credit (10% of the total)
Have you applied for new credit, such as a credit card or car loan, in the past 12 months, along with a record of getting approved. If you have had new credit live approved in the past 12 months, then this will also help improve your credit rating.
5. Law-abiding record (10%)
This is mainly whether you have been sued or claimed by legal action in the past.
