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.
How to Read A CCRIS Statement in Malaysia
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.
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.
How 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.
When Is A CCRIS Statement Important in Malaysia?
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 in Malaysia:
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.
How Bluebricks Can Help You With Your CCRIS Statement
If you do not know how your CCRIS statement is impacting your financial health, Bluebricks can help!
As a trusted bank loan and debt consolidation agency in Malaysia, our experts can analyse your credibility with the bank so you can proceed with your loan application process confidently.
But that’s not all – our commitment to your financial success extends beyond CCRIS analysis. We also offer a comprehensive range of financial services designed to meet your diverse needs, including:
- Personal loan rejected services
- SME loan rejected services
- Mortgage loan rejected services (for buying a new home, refinancing and cashback purposes)
- Collateral loan services
Personalised Loan Consultancy Services in Malaysia
Bluebricks also offers personalised loan consultancy services, helping clients understand and improve their rejected loan applications for refinancing housing loans and more.
We customise our loan recommendations based on an individual’s needs, considering factors like:
- The specific loan amount you require.
- The urgency with which the loan amount is needed.
- Whether you or your parents own a property that has been held for over ten years.
- Your income level.
- Your CTOS score (such as your credit score and credit history).
Our goal is simple: to help you find the right loan solution, paving the way to financial stability and debt freedom.
CCRIS Statement – 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.