CCRIS and Personal Loan

With the rise in living costs, Malaysians might have to resort to personal loans from banks. A personal loan can be a fantastic financial product because it helps individuals to meet their financial needs during emergencies by offering an easy and flexible approval and disbursement of the money. Most banks Malaysia offer personal loans to individuals that meet their criteria and requirements. However, many of these banks do not have the manpower to check the background of each and every possible loan applicant as it is a massive task and very time consuming. Hence, this is where CCRIS, Central Credit Reference Information System, a supreme credit bureau that maintains the credit records and history for all Malaysian customers, comes in to assist banks to determine how eligible the applicant is for a personal loan.


Types of Information

The types of information that CCRIS provides to the banks include:

  • Customer’s existing credit lines along with details like type of credit, credit amount and payment or non-payment details
  • Each credit line’s total outstanding balance
  • The credit channel’s legal status and the customer’s general conduct for the past 1 year
  • Important details such as date of update, credit repayment frequency and type of collateral that was submitted to obtain the credit


CCRIS Role in Personal Loan

Although in our previous article, we mentioned that CCRIS is in no way a blacklist and does not evaluate an individual’s credit worthiness, banks do use CCRIS report to determine how eligible an applicant is because it is a requirement from the central bank, Bank Negara Malaysia. Bank Negara Malaysia made it compulsory for all financial institutions and bodies located in Malaysia to check on both CCRIS and CTOS report before they are allowed to approve any type of loan to the applicant. Most banks may only approve personal loans for applicants with a good and decent credit history while certain banks may also approve personal loans to applicants with poor credit history and the banks reduce their risks by charging a higher rate of interests to customers that has poor credit history. However, it is advisable not to accept personal loans that come with a higher interest rate unless the applicant desperate needs it or else this might put the applicant into financial trouble resulting in delayed repayments that will further put a dent on the applicant’s credit history.


Types of Information Banks Look at in Credit History

Below is a list of things that a bank will pay a special attention to while they determine if the applicant is eligible or not eligible for a personal loan:

  • Bank accounts or bank accounts that are under legal action
  • Delayed or missed payments for credit cards or loans
  • How much percentage did the applicant utilize from his or her credit limit and if the applicant frequently exceeds his or her credit limit
  • Checking the applicant’s high debt to salary ratio and the amount of percentage of debt held by applicant against the applicant’s monthly income or annual income
  • Applications for multi-active personal loans and credit cards


Tips on How to Get a Good CCRIS Report

Below is a list of tips that you can follow in order to get a good CCRIS report:

  • Refrain from making too many personal loan applications from different banks because CCRIS is directly linked to the banks and it shows that you are desperate for money if you have a single name under multiple loan applications
  • Make sure to do your repayments for loan instalments and credit card bills in a timely manner because it can improve your credit score
  • Avoid having too many credit lines under a single name because this will generally put you under a financially stressed situation and multiple channels payments can be increasingly difficult if your cash flow gets stuck
  • In order to create a good credit history, it is advisable for you to mix and match both secured and unsecured loans in your portfolio as totally unsecured loans debt is a risk to your credit score
  • Before heading out to the bank to apply for a personal loan, make sure you print out your credit report first to make sure that is good and no further improvements need to be made because it can also put a dent in your credit score if your personal loan application gets rejected from the bank due to your poor credit score

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