The Central Credit Reference Information (CCRIS) provides credit reports and is managed by the Credit Bureau of Bank Negara Malaysia. CCRIS collects credit information from financial service providers in Malaysia like banks, insurance brokers and even private companies providing utility services such as the Malaysian telcos. Amongst the information that will be on the credit report from CCRIS are any outstanding loans, summons, or whether the person has been declared bankrupt. Periodically (usually monthly), most of the financial institutions will prepare a credit report to be submitted to Bank Negara Malaysia’s Credit Bureau for this purpose.
All of the information and data is then compiled into a credit report which financial institutions like banks will have access to. The data that will be on the credit report will be broken down into a span of 12 months. It will contain credit related information of an individual such as below:
a) Outstanding credit
b) Special attention accounts, which are credit facilities under close supervision of financial institutions
c) Applications for credit in the previous 12 months that have been approved or are pending.
It should also be noted that CCRIS does not only contain the negative credit information of an individual, but it will also show positive information like your credit approvals and positive repayment history. One misconception that most people may have is also that CCRIS will blacklist you if you have bad repayment pattern. However, CCRIS does not provide any opinion or blacklist any individuals, CCRIS provides factual data which will then be used by financial institutions.
What Is CTOS ?
CTOS is a private company which provides credit reporting and is also widely used by financial institutions to determine an applicant’s creditworthiness aside from using CCRIS. Usually, financial institutions use more than one credit report to determine an applicant’s credit health.
CTOS collects credit related information from various public sources such as:
a) National Registration Department
b) Malaysia Insolvency Department
c) Companies Commission Malaysia (CCM)
d) Information provided by creditors / litigators / trade referees
e) Publications of legal proceedings and notices in newspapers and government gazettes.
Trade referees (CTOS subscribers) may want to share their business experiences known as “trade references”. It is likely the trade referee could have dealings with you and/or your company or business. For instance, Telco and utility companies have been known to put themselves as trade referees for subjects who have long-standing uncollectible debts with them, even for small amounts.
The types of credit related information which will be included in the credit report from CTOS will include bankruptcy, legal action and even case statuses. It will also detail an individual’s business exposure, business ownerships and directorships, if any.
Similar to CCRIS, CTOS does not provide comments, opinions or blacklist any individuals.
Both provide credit reports, however CCRIS is under Bank Negara Malaysia whilst CTOS is privately managed. Another key difference is how the information is compiled. As for CCRIS, the information is derived from financial institutions. While CTOS on the other hand gets credit related information from public sources such as CCM.
On top of that, unlike CCRIS where records are kept only for 12 months, CTOS records are kept indefinitely as an historical archive of one’s history and experiences.
Why Are CCRIS and CTOS Important to You?
1. Used by Banks to Decide
When you apply for a credit card, or even a loan from banks, before they determine to approve or reject your application it will go through a credit approval process to look into your credit history. The bank you applied to will look at your credit reports before they make a decision. If your credit reports are in good shape, banks will usually have no qualms to approve your application. However if they see missed payments on your credit report, it is highly likely that banks will not approve your application.
Banks will also look at an individual’s credit report to calculate and determine their debt service ratio before rejecting or approving the application.
2. Shows Your Credit Pattern
Both CCRIS and CTOS will show your credit payment ability and all of your financial commitments. If you took a loan with PTPTN, you should also be paying diligently as any defaulted payments for your PTPTN loan will show up on your credit report. This will then affect your chances when you are applying for a loan or a credit card.
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Edited by: 浪子
Bibliography
Fara Joifin. (2016). What Is The Difference Between CCRIS and CTOS? Retrieved from
https://www.comparehero.my/blog/difference-between-ccris-ctos
Hayden. (2017). What are CTOS and CCRIS. Retrieved from
https://www.fortune.my/what-ctos-ccris.htm
Loanstreet. (2016). Everything You Should Know About CTOS. Retrieved from
https://loanstreet.com.my/learning-centre/everything-about-ctos#
What Is the Difference Between CCRIS and CTOS?
Reviewed by 浪子
on
August 30, 2018
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Reviewed by 浪子
on
August 30, 2018
Rating:
