5 Factors Affecting Your Credit Score
If you keep having your loan applications for a car or a house refused. It’s possible that the financial institution rejected your credit application because it didn’t have access to your credit history or because you have a bad credit rating.
CCRIS and CTOS are now Malaysia’s two primary credit ratings. The bank will initially look at the applicant’s CCRIS or CTOS report when they apply for financial products like credit cards, personal loans, auto loans, housing loans, etc.
Credit Intelligence Services Sdn Bhd and Bank Negara, respectively, have compiled CCRIS and CTOS, two credit rating reports.
If you intend to apply for new credit soon, you should first get a copy of your credit report from CCRIS or CTOS to better understand it. After that, you should take quick action to raise your credit score.
Here are five factors that influence your credit score, along with their respective percentages.
1. Records of repayment (40%)
The major purpose of this is to evaluate how well you have handled repayment over the past 12 months, including whether you have paid your credit card payments on time each month. Your credit score will be impacted if you frequently pay your payments beyond the due date.
2. Debt and credit portfolio (30%)
The sort of credit and loan has an impact on the credit score as well. Secured loans (loans for cars and homes) and unsecured lines of credit are the two main types of loans and credit (credit cards and personal loans). It is also taken into account how much debt is still owed.
3. Credit history length (10%)
The length of time a specific credit line has been used, such as the number of years the credit card has been used, the number of years the loan has been repaid, etc.
4. Request for a new credit line (10%)
Whether you have recently applied for new credit—like a credit card or auto loan—and have a track record of getting it.
Your credit rating may also be boosted if you’ve just received fresh credit approvals.
5. Record of compliance (10%)
Whether you have previously been sued or threatened with legal action is the major consideration here.
