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#36 Knowing Your Finances: CTOS & CCRIS What It Is, And How Does It Work

Many of us have heard that getting a good credit score is very important for our financial future, especially when applying for a credit card or home loan. CCRIS and CTOS terms are always issued each time you apply for a financial product.


But are you really sure how exactly CCRIS and CTOS are and what the differences between them are? Don’t worry, we’ve simplified it for you! Read on to find out why they are so important in Malaysia!


First of all, what is CCRIS?


The Central Credit Reference Information System (CCRIS) report is an important step in getting a loan approved in Malaysia, especially if you are going to buy your first home.

Simply put, your CCRIS report is your financial health report card to give an assessment to the loan provider on your suitability to borrow money from them!

Where does the CCRIS system gather information to produce your CCRIS report? They come from various places where you do regular monthly transactions. These include banks, insurance providers, payment instrument issuers, credit leasing companies, government agencies, and private utility companies.

However, to ensure the smoothness in your process of applying for loan, you have to ensure these issues to avoid any problem.


Issues in the CCRIS Report that usually raise red flags with banks:

  • If you have any Special Attention Accounts in your name.

  • If you have ongoing legal cases filed against you.

  • If you have too many missed or late payments on your outstanding loans.

  • If you’ve applied for too many loans, credit cards, etc. in the last 12 months.

  • If you have maxed out your credit card or overdraft limits.


Alright! Now you already addressed the issue, so what steps can be taken to improve your CCRIS reporting? First things first:


  • Don’t miss out on loan repayments - Maintain your payment discipline. Before applying for a loan, foresee if you can repay your outstanding payments for a period of 12 months, as this will look good on your CCRIS report.


  • Time your loan applications- Every month on the 15th, the CCRIS system is updated with every payment made up until the end of the previous month. A good rule of thumb is to apply for a loan after the 16th of the month if all outstanding payments have been made by the end of the previous month.


  • Avoid late monthly payments- On a regular basis, a recurring payment date falls before your payday, causing you to miss payments by a few days. This avoidable problem reflects poorly on your CCRIS report. Therefore, you can request the bank to change your payment date to align with your payday, or set aside some funds for timely payments.


  • Stop random applications for financial products - Before applying for a financial product, it is always advisable to conduct thorough research in a financial marketplace. Multiple applications can damage your CCRIS report.


  • Do have a credit history - You may assume that not having any loans or credit cards will help your CCRIS. However, this is not the case, as a good credit history assists banks in determining whether you will be able to repay a loan or not.


Okay, let's dive into CTOS?


While CCRIS is a system provided by Bank Negara Malaysia, CTOS is a credit reporting agency that provides credit reports to individuals and financial institutions. They are widely used by financial institutions to determine your creditworthiness before determining whether you are eligible for a loan, similar to CCRIS.


The CTOS report's most important feature is that it obtains information from public sources such as:


  • Legal notices in newspapers and government gazettes,

  • Malaysian Department Insolvency (MDI),

  • National Registration Department (JPN),

  • Registrar of Societies (ROS),

  • Information provided by creditors, business partners, or the suing party.


The CTOS report allows financial institutions to analyze and evaluate the possible risks of approving one's loan application. The CTOS report is only a credit report, not a blacklist record, which is a common misconception among Malaysians. CTOS has no legal standing and has never blacklisted anyone. In summary, the CTOS report provides additional information about a person's credit standing, whether good, or bad, as a support document as what CCRIS has provided.


The types of credit-related information which will be included in the CTOS credit report will include bankruptcy, legal action, and even case statuses. It will also detail an individual’s business exposure, business ownership.


Final Thought.


Think of it as your browser history, but a version you can’t easily explain. CCRIS and CTOS will demonstrate your credit repayment ability and all of your financial commitments. If you make a loan with any party such as PTPTN, you should also pay diligently because any default payment for your loan will appear on your credit report. This will affect your chances when you apply for a loan or credit card. Therefore, it is important that you update your credit report so that it is always positive.


Once you learn more about CCRIS and CTOS, it’s time you pay more attention to your credit report so you don’t sabotage your future applications with financial institutions!




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