If you are currently applying for a loan or buying your first home, you might’ve heard the term CCRIS statement being mentioned here and there. But what is it?
A CCRIS statement is a crucial tool used by financial institutions in Malaysia. They use it to determine the creditworthiness of potential or current borrowers for home loans, credit cards, personal loans, etc.
If you find that understanding a new financial jargon can be difficult, no worries! Here’s a simple guide to all you need to know about your CCRIS statement.
Reading Your CCRIS Statement
The CCRIS statement provides banks and financial institutions with detailed factual information about an individual’s credit history. The information included in a CCRIS statement covers three areas:
- Outstanding Credit
- This is a summary of all the borrower’s outstanding loans and credits, such as housing loans, personal loans and overdrafts. It includes information on the borrower’s outstanding amount, limits and payment behaviour.
- Special Attention Accounts
- A special attention account refers to outstanding loans flagged by a financial institution under special monitoring.
- This means that the account has been moved into special measures in order to recover that loan.
- Applications for Credit
- It shows the borrower’s number of credit applications and their statuses – whether approved, rejected or deleted.
Read More: Refinancing Housing Loan Malaysia: All You Need to Know
Banks and Your CCRIS Statement
Financial institutions in Malaysia use your CCRIS statement to evaluate your creditworthiness. They typically look out for the following information:
- Accounts under legal status (legal action being taken) or special attention accounts.
- Missed or late repayments. The more you owe, the higher the chance you will be considered to have a bad credit rating and not offered any more credit.
- The utilisation of credit limits. For example, high utilisation of your credit card indicates poor money management.
- A high Debt Servicing Ratio (DSR), which indicates you barely have enough operating income to cover annual debt obligations.
- Multiple active loans or credit applications. The more applications you submit, the more financially insecure you seem to banks.
Most financial institutions will reject an application if there are two months in arrears of loan payment for each loan undertaken.
Moreover, different banks have different DSR limits, which also vary according to each individual and their respective income levels.
For example, Public Bank users earning below RM5,000 have a DSR cap of 60%, and for those earning more than RM5,000, their limit is 80%.
Ultimately, lending decisions depend on the risk evaluation and policies set by the financial institution you borrow from. Using the same information from the report and other sources, one institution may approve your loan application while another may not.
5 Ways To Improve Your CCRIS Statement
1. Pay Your Instalments On Time
If you do not repay your loan, it will be displayed on your CCRIS report in numerical representation. For example, if you owe two months’ worth of payment, your CCRIS report will have the number ‘2’ in the column of that particular loan.
To resolve this situation, you will need to consistently pay on time for the next 12 months to clear your old record.
2. Realign Your Repayment Timeframe
If the number ‘1’ consistently appears in your repayment behaviour, it means that you are a month behind in your payments.
However, this could be because your payment due dates are earlier than your payday. Consider discussing with your bank to delay your billing cycle to prevent this issue.
3. Settle Minor Credits
If you have high credit utilisation, resolve your minor credit lines, such as outstanding credit card payments, before submitting a new loan application.
4. Have A Credit Record
Have at least one credit facility and ensure you pay on time. This is because it hurts your credit score if you do not have a credit history, for example, if you have no loans or overdraft facilities.
Most banks would not offer a full margin of finance when a person’s credit profile is blank.
5. Limit Your Credit Application
Submitting multiple credit applications at once will hurt your credit score and reduce your chances of getting the loan.
This is because lenders look down upon multiple credit inquiries as it is considered a sign of high credit risk.
Read More: Bankruptcy Malaysia: How to Remove Bankruptcy Status in Malaysia
When Is A CCRIS Statement Important?
A CCRIS statement is a crucial element of having a potential loan approved, which makes it an essential part of the early steps towards owning your first home.
Your CCRIS statement, updated on the 10th to 15th of every month, should convince banks that you are financially stable and well-managed.
They will then approve your home loan application as you’re seen as someone who pays back monthly dues dutifully without any issues.
How Can I Obtain My CCRIS Report?
You can request access to your CCRIS report with these three credit reporting agencies:
1. Experian
Experian Credit & Information Services (Experian) is one of Malaysia’s leading Credit Bureaux accredited under The Credit Reporting Agencies Act 2010.
It is Malaysia’s first credit reporting agency (CRA) to achieve International ISO 27001:2013 certification back in January 2017.
A trusted credit and business information provider with a comprehensive database, Experian makes it easy to understand and improve your credit status.
2. CTOS Data Systems Sdn Bhd (CTOS)
Established in 1990, CTOS is Malaysia’s leading CRA under the purview of the Registrar Office of Credit Reporting Agencies and the Ministry of Finance.
A trusted credit reporting agency in Malaysia, it adheres to the regulations set by the Credit Reporting Agencies Act 2010.
Like Experian, CTOS is granted approval to access the CCRIS system to provide private credit reports to their users.
3. Touch’ n Go
Touch’ n Go Group provides free MyCTOS and CCRIS reports for its Touch’ n Go eWallet users through its collaboration with CTOS.
To claim your free MyCTOS and CCRIS report, download the Touch’ n Go eWallet app on your iOS and Android device today!
Read More: CTOS: The Importance of CTOS Score and How It Impacts You
How Bluebricks Can Help You
If you do not know how your CCRIS statement is impacting your financial health, our financial experts at Bluebricks are ready to help.
As a trusted financial consultancy company and licensed money lender in Malaysia, we have the expertise to analyse your credibility with the bank so you can carry on with your loan application process with more certainty and confidence.
Refinance Housing Loan Rejected Services
At Bluebricks, we are proud to serve our extensive clientele and believe they are a testament to the quality of the loan consultancy and rejected services we offer.
We understand the challenges many individuals face while applying for refinance house loans. Therefore, we provide comprehensive refinance housing loan rejected services to help failed applicants discover why they were rejected and improve their applications to get their desired bank loans.
CCRIS Statements – FAQs
Your CCRIS statement is a valuable tool to help you stay on top of your finances and manage your credit health. Here are a few quick facts you may want to know about CCRIS statements in Malaysia.
A CCRIS statement is provided by Bank Negara Malaysia to show your financial health to loan providers. On the other hand, CTOS is a credit reporting agency that provides credit reporting for individuals and financial institutions.
Yes. A CCRIS statement reports your loan repayment behaviour, which is what banks and financial institutions will look at when you apply for a new car loan. If you do not have a good repayment record, your car loan will be rejected.
No. A CCRIS only includes the borrower’s financing details and repayment history. It is not a list of names of borrowers with poor repayment histories.
