Do you know your credit history? If you don’t, it’s time to play catch up. We compare three credit rating agencies and share its pro’s and con’s to help you decide the easiest and the best way to obtain your credit report.
What is a Credit Report?
When you apply for a credit card or even a loan from banks, before they determine to approve or reject your application it will go through a credit approval process to look into your credit history. If they see missed payments on your credit report, more often than not, banks will reject your application.
Banks will also look at an individual’s credit report to calculate and determine their debt service ratio before rejecting or approving the application. This is because banks do not want to take on a risk by approving your application, so they look at your credit report and use it as one of their tools and determining factor.
Think of it like your browser history, but one which you cannot so easily amend or delete. Credit reports will show your credit payment ability and all of your financial commitments. This is why as a consumer it is important for you to make sure your credit report is in good condition.
In Malaysia, there are three ways you can get your credit report to see how good (or bad) your score is. The main sources for credit rating are CCRIS, CTOS and Personal Credit Report.
Learn more about each of these reports below:
CCRIS
The Central Credit Reference Information (CCRIS) is a credit system that collects financial information of individuals. It then provides credit reports from the compiled information and is managed by the Credit Bureau of Bank Negara Malaysia. CCRIS collects credit information from financial service providers in Malaysia like banks, insurance brokers and even private utility services companies such as the Malaysian telcos.
The data that will be on the credit report will be broken down into a span of 12 months. It will contain credit related information of an individual such as below:
- Outstanding credit such as outstanding loans and summons
- Special attention accounts, which are credit facilities under the close supervision of financial institutions
- Applications for credit in the previous 12 months that have been approved or are pending
- Whether the person has been declared bankrupt
CCRIS does not only contain negative credit information of an individual, but it will also show positive information like your credit approvals and positive repayment history. Another misconception is that most people think CCRIS will blacklist you if you have bad repayment pattern. However, CCRIS does not provide any opinion or blacklist any individuals, CCRIS provides factual data which will then be used by financial institutions.
How to get your CCRIS credit report
To get a copy of your CCRIS credit report you will have to go to Bank Negara, and you can only get access to your own credit report so you cannot ask someone else to obtain it for you. You will need to bring along your MyKad and other supporting documents to verify your identity. The credit report will then be issued to you at Bank Negara Malaysia’s head office or Bank Negara Malaysia’s regional branches.
CTOS
CTOS is a private company which provides credit reporting and is also widely used by financial institutions to determine an applicant’s creditworthiness aside from using 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 obtains information from various public sources such as:
- National Registration Department
- Malaysia Insolvency Department
- Companies Commission Malaysia (CCM)
- Publications of legal proceedings and notices in newspapers and government gazettes
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 ownerships and directorships if any.
How to get your CTOS credit report
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.
Personal Credit Report Plus (PCRP)
There’re three types of credit report provided by RAM Credit Info Sdn Bhd (RAMCI), but for a comprehensive credit report, we suggest the PCRP.
Among the extra features of the PCRP is the i-Score, which is a credit rating co-developed and conceptualised by RAM Credit Information and Experian, the world’s largest credit bureau. i-Score provides a three-digit number that predicts your likelihood of paying back a loan or your other credit obligations on time. A higher number means you have a better credit worthiness while a lower number indicates you are a credit risk.
Which is The Best?
CCRIS is FREE which is what puts it ahead of the other two credit report agencies. However, it must be obtained in person, so you have no choice but to go to Bank Negara Malaysia’s head office or their regional offices.
As for extensiveness between the three reports, it is advisable to not rely only on one credit reporting agency. This is because of the difference in how the information is compiled. CCRIS compiles information from its financial partners while CTOS and PCRB get information from public sources. So, spend a bit more to get a thorough and comprehensive credit report, and ideally, it should be a combination of CCRIS and another credit report.
As for both CTOS and i-Score, it can be obtained online from the comfort of your home or even while you are on the go. But of course, the convenience does come with a price. PCRB cost RM10 per set, while CTOS is RM25 per report.
If you want a detailed report, PCRB has nice extra features such as being able to see who has made enquiries on you, litigation history, and also the i-Score feature. Another plus point is that it’s RM10 per report so about half the price from CTOS. But if you’re quick, for a limited time CTOS is offering FREE credit reports for the first 100,000 individuals.
Now that you know more about both the agencies you can go to get your credit history, it’s time for you to pay closer attention to your credit report so you don’t sabotage your future applications with financial institutions. Aim to check your credit report every year so you can see where you stand and ensure you have healthy financially standing.
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