How to Read Your CCRIS and CTOS Reports
Applying for a line of credit or a loan may seem like a hit or miss. What’s frustrating is that, when you receive a rejection letter from the bank, you have no clue why you were declined.
While it’s disappointing to be left in the dark, there’s a way to find out how likely you’ll be approved for a credit card or loan beforehand - by checking your credit report.
When you look at your credit report, you’d be surprised to see details of your spending habits and what’s bad when it comes to your credit. You’ll also find out how to fix them so you can avoid being rejected from one bank to another - which can impact your credit health.
You can do so by checking your CCRIS or CTOS report to check if there are any red flags in the report that can affect your future credit or loan applications. The bear will help you finally get some of the uncertainties from credit application.
What is CTOS?
CTOS (Credit Tip Off Service) is a private company under the scope of the Credit Reporting Agencies Act 2010. CTOS collects information and provides a detailed credit reporting of your credit history for the past 24 months, legal proceedings, company ownership and directorship, to testimonies from companies that a company have business dealings with.
You can check your report to confirm you are financially healthy. Simultaneously, financial institutions check your report to determine your creditworthiness for a credit application or loan as CTOS works both ways.
The information on your CTOS credit report is mostly used by banks to evaluate your loan application and decide if you are worthy to be given a loan.
Therefore, if you’re applying for any loan, it’s best to evaluate your credit profile first via CTOS to safeguard that your credit records are free of things that will give doubts to your creditworthiness so you can get a higher chance of getting approved by the bank.
How to get your CTOS report?
You can get your CTOS report online at MyCTOS report for free at the comfort of your home. \
Register an account
Fill up the details required by providing your identity card no. (IC No.), your email address and the language you prefer - you can choose between English, Malay, or Chinese.
Once you’re done, you’ll then be required to fill up some of the details about you or your company.
Then, attach a front and back image of your MyKad to verify your details and fill in your mobile number.
A TAC verification code will be sent to your mobile number to complete the registration process. Once you’ve received your TAC code, put in the space to complete your registration.
There will be a confirmation email sent where you will have to verify your registration.You will receive another email where to inform you that your account has been verified, and registration is complete.
Activate your CTOS ID
Upon successful registration, you will have to wait three working hours for CTOS to verify your details and provide you with a valid user ID that you will need to access your CTOS report.
You will receive an email from CTOS with the details of your User ID via the email you provided.
The registration process is complete when you enter your user ID and your password and proceed to accept the terms and conditions.
Then choose a security question so your MyCTOS will not be logged in easily by someone else.
How to read your CTOS report?
Once you have full access to view your CTOS report, your first CTOS report will be sent to you for free. But don’t worry, you’ll still be able to check it anytime you when you go to CTOS website.
In the process, you will get a special email account to use for CTOS purposes. You can even access your report at the tip of your hands with the mobile app!
The first step in getting a higher chance of being approved is understanding what banks look at on your CTOS report.
The details of your report mainly include your identity verification, business exposure, directorships and business ownerships. It also has the features of legal actions, case statuses, bankruptcy information and your comments.
The most important part of your report that banks pay attention to is the third section, your financial history.
This section consists of three parts - your recent credit application and CCRIS details, a record of dishonoured cheques and your comment.
The CCRIS details are further broken down into three parts which will also be explained on the part of the CCRIS report.
Under the comment section, you can justify why your financial behaviour. For instance, you have been missed a payment because your balance statement was late.
Your CTOS records are kept for 24 months as an archive of your background and credit history. After that, your historical file will not appear in your CTOS report after two years.
What is CCRIS?
CCRIS (Central Credit Reference Information System) is a system managed by Bank Negara Malaysia that collects credit information on borrowers from financial institutions. The CCRIS report is also used by financial institutions to help them establish a view of the credit histories of borrowers and potential borrowers.
The report shows detailed information on your outstanding credit, special attention accounts, and your applications for credit in the past 12 months that are pending or approved. A common misconception about CCRIS is that they will blacklist you when you have bad repayment pattern.
Your CCRIS records are kept for 12 months as a historical archive of your background and credit history.
The information on your CCRIS credit report is used by a financial institution to assess your credit card application as it contains factual and historical information on the loan amount, interest and outstanding balance on each credit line.
How to get your CCRIS report?
You can get your CCRIS credit report from Bank Negara Malaysia. If you are from the Klang Valley, you can get your credit report from the Customer Service Centre, Laman Informasi Nasihat dan Khidmat BNM (LINK) of BNM. You don’t have worry about paying a fee because it’s free.
If you are from outside of KLANG Valley or BNM branches, you may apply for a credit report with the following:
- Credit Report Request Form (CRR);
- Loan Declaration Form;
- A clear photocopy of your MyKad (both sides); and
- Any combination of the two other documents (with your name and address from the following):
- Driving license;
- Water bill, Electricity bill or Telephone bill
How to read your CCRIS report?
The CCRIS does not directly state if you have a good credit record or not. It just shows your credit history. The details of your report includes outstanding credit, special attention account, and application for credit:
1. Outstanding credit
This part shows your outstanding balance from existing credit facilities, including your repayment behaviour, arrears and legal status if any. Your repayment behaviour is arrears how good you are as a paymaster. If you have a number “0” in your repayments, that means you pay on time, but if you are a month behind on your payments, you’ll have a number “1” on that particular loan. Having a legal status, on the other hand, tells that you have been sued by the existing creditor to pay up your dues.
2. Special attention account
Under this column contains all outstanding credit facility which is under close management by financial institutions. Credit facilities that are considered as Non-Performing Loan (NPL) or under specially negotiated debt management schedules by Credit Counselling and Debt Management Agency (AKPK) are also included in this section.
3. Credit application
This is the section where banks look carefully to see if you can take on another loan based on your current status. This article shows if you have applied for any credit facility in the last 12 months if you are approved or rejected. If your recent activity discloses that you have a current application that has been denied, your credit worth will seem questionable, and it could mean that you are unable to make repayments. If it has been approved recently, then it will also look questionable why you need another line of credit if you can pay for it considering your existing commitments.
Banks generally look closely to the following to assess your creditworthiness:
- Missed or late repayments. If you have a lot of arrears, you will be considered having a bad rating by bank and financial institutions and will not provide you any further credit.
- Utilisation of credit limits (For instance, having a high utilisation of credit card as this indicates poor money management)
- Accounts under legal status or special attention accounts.
- High Debt Servicing Ratio (DSR). This is conducted when you compare your income documents against your total outstanding credit.
- Multiple credit applications or active loan. If you have a lot of applications, you may look desperate to banks.
Your CTOS and CCRIS reports help banks and financial institution decide if they should approve your loan or credit application. Banks are also careful of accepting your application, so they too assess your debt service ratio.
Think of your credit reports like a report card, showing how trustworthy you are to banks. Regularly checking your credit report can help you keep track on your financial health. You’ll be able to pre-assess yourself if you’ll be approved for a loan or a line of credit if not, it’s time to take steps towards improving your finances.