Did you know what criteria do banks look out for when you apply for a loan?
If you are applying for a loan, the bank will check your credit record on CCRIS or CTOS in order to approve or reject your application.
What is CCRIS or CTOS? Both of these functions are to assess your financial health and your ability to pay your monthly repayment.
CCRIS stands for Central Credit Reference Information System and it is owned and operated by the Central Bank of Malaysia, or Bank Negara Malaysia (BNM).
CTOS is a credit reporting agency that collects and compiles data available from legitimate public sources and authorised government agencies to provide information about an individual or a company’s directorship and business interests, litigation and legal information, banking payment history (CCRIS summary, details and derivatives), and trade reference details.
So, if you have a bad credit record on CCRIS and CTOS, which is commonly referred to as “blacklisted by CCRIS or CTOS”, your chances of obtaining a loan from banks will be affected.
4 Tips To Improve The Chances Of Getting A Home Loan In Malaysia When You Have A Bad Credit History
Here are 4 ways to improve your CCRIS or CTOS:
1) Overdue loans must be settled
The time frame needed to clear your CCRIS and CTOS records.
For CCRIS: The overdue records will stay in your CCRIS record for 12 months
For CTOS: The overdue records will stay in your CCRIS record for 12 months
If you cannot fully settle the amount, you need to at least clear all overdue amounts and maintain a prompt payment record for 12 months for CCRIS or 24 months for CTOS in order to remove the bad records.
2) Sell the property
If you own a property and are facing difficulties in clearing the property loan, you can consider selling the property to reduce existing commitments. This will also give you extra cash at hand to settle other debts.
3) Refinance the property
If you own a property and the property’s value has increased, you can refinance the existing home loan so that you have extra cash at hand to settle the facilities with bad credit records.
4) Consult a mortgage advisor
Every bank has its own preferred customer segment and risk level requirement. Consult a mortgage advisor instead of applying for a loan directly from banks.
In conclusion, most loan applications are highly reliant on the result of an applicant’s CCRIS and CTOS report.
Borrowers are advised to perform their CCRIS and CTOS checking from time to time to know more details about their current financial status if they are considering a home loan. If you wish to know more about real estate, feel free to contact us.
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