Every time you've applied for a financial product, you may have heard the terms CCRIS or CTOS thrown around, more so when you apply for loans. And if you've never quite understood what those terms mean or don't know the difference between the two, we've simplified it for you here and listed why they are so important to Malaysians.
CCRIS, or the Central Credit Reference Information System, is a credit reporting system in Malaysia. It's overseen by the Credit Bureau of Bank Negara Malaysia. CCRIS gathers credit information about borrowers from various financial institutions in Malaysia, including individuals, businesses, companies, and government entities. These institutions include banks, insurance companies, and government agencies. In essence, CCRIS collects and maintains credit-related data to help lenders assess creditworthiness.
Participating financial institutions are required to report on a regular basis, the following information:
- Profile of the borrower, such as name, identity card/business registration number, date of birth/registration, address, etc;
- Credit application details, such as the amount applied, date of application, type of facility; and
- Credit account details, such as type of credit facilities, credit limit, outstanding balance, installment amount, the conduct of account and legal action status, if any.
All of the information and data is then compiled into a credit report which financial institutions like banks will have access to. The data that will be on the credit report will be broken down into a span of 12 months.
The CCRIS credit report includes the following borrower information:
- Outstanding Credit: This shows all the current credit facilities in the borrower's name, whether they are individual, joint, or related to a business or professional affiliation.
- Special Attention Accounts: These are credit facilities that are closely monitored by financial institutions for specific reasons.
- Credit Applications: It lists all approved credit applications in the past year and any pending applications.
It's important to know that CCRIS doesn't only contain negative credit data but also includes positive information like approved credit and good repayment history. Contrary to common misconceptions, CCRIS doesn't blacklist individuals; it provides factual data used by financial institutions. Fully settled credit facilities are not shown in the report.
You can obtain your free CCRIS credit report from Bank Negara by visiting their office or AKPK. You'll need a 6-digit PIN code from the CCRIS Kiosk to access your report online through eCCRIS.
What is CTOS?
CTOS is a private company and one of Malaysia’s leading Credit Reporting Agency (CRA) under the Credit Reporting Agencies Act 2010. They too provide credit reporting and are also widely used by financial institutions to determine an applicant’s creditworthiness aside from CCRIS. Usually, financial institutions use more than one credit report to determine an applicant’s credit health and CTOS is also known to be widely used in Malaysia.
CTOS produces the MyCTOS Basic Report and MyCTOS Score Report. They obtain their information from various public sources such as:
- National Registration Department
- Registrar of Societies
- Malaysia Insolvency Department
- Companies Commission Malaysia (CCM)
- Publications of legal proceedings and notices in newspapers and government gazettes.
- Subcsribers’ contributions to litigation records
The types of credit-related information which will be included in the credit report from CTOS will include bankruptcy, legal action and even case statuses. It will also detail an individual’s business exposure, business ownership and directorships, if any.
Similar to CCRIS, CTOS does not provide comments, opinions or blacklist any individuals. Aside from that, you can also obtain your own credit report from CTOS through MyCTOS. First, you will need to register to obtain your CTOS User ID, and once your ID has been activated you will be able to access your credit report from MyCTOS anytime over the internet and even through the CTOS app.
What Is The Difference Between CCRIS and CTOS?
Both provide credit reports, however, CCRIS is under Bank Negara Malaysia whilst CTOS is privately managed.
Another key difference is how the information is compiled. As for CCRIS, the information is derived from financial institutions. While CTOS on the other hand gets credit-related information from public sources such as those we discussed earlier. Ultimately, both provide credit reports although the main difference is how the credit information is obtained.
Why are CCRIS and CTOS important?
CTOS and CCRIS are important because they provide financial institutions with information about your creditworthiness. This information is used to assess your risk of defaulting on a loan or credit card.
If you have a good credit history, you are more likely to be approved for a loan or credit card with good terms. However, if you have a bad credit history, you may be denied a loan or credit card, or you may be offered a loan or credit card with high-interest rates and fees.
How to get your CTOS and CCRIS reports
You can get your CTOS and CCRIS reports for free once a year. To do this, you can visit the CTOS website or the CCRIS website and register for an account. Once you have registered, you can request your reports online.
How to improve your credit score
There are a few things you can do to improve your credit score:
- Pay your bills on time. This is the most important thing you can do to improve your credit score.
- Keep your credit utilization low. Your credit utilization is the amount of credit you are using compared to your total credit limit. Aim to keep your credit utilization below 30%.
- Don't apply for too many new credit cards at once. This can lower your credit score.
- Dispute any errors on your credit report. If you see any errors on your credit report, dispute them immediately.
By following these tips, you can improve your credit score and increase your chances of being approved for a loan or credit card with good terms.