A credit score is a three-digit number that gives you a snapshot of your credit health. It evaluates your financial history to see if you are credit-worthy. It is a good indication of whether financial institutions will be approving your credit product applications. Just like how you need a resume when applying for a job, you also need a full financial health check-up before applying for loans.<\/p>\n
Having a good credit score will open up more financing options for you as more banks won\u2019t be afraid to deal with you. On top of that, they might also offer you a better rate for credit products such as home, car and personal loan. A less than satisfactory credit score may discourage banks from giving you a loan.<\/p>\n
<\/span>How is your credit score calculated?<\/span><\/h2>\nYour credit score is a weighted calculation, with five factors contributing to the final overall number.<\/p>\n
![\"\"](\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2019\/06\/CreditScore-Pie-300x300.png\")
<\/p>\n\n
\n\n\n\t40%<\/td> Payment history<\/strong>
\n
\nWhether you pay your loans on time or have missed payments over the last 12 months.
\n<\/td>\n<\/tr>\n\n\t30%<\/td> Credit Mix and Loan Amounts Owed<\/strong>
\n
\nTypes of loans and credit cards you hold - secured (home, car loans) vs unsecured credit (credit cards, personal loans), and the amount owed to the banks.<\/td>\n<\/tr>\n\n\t10%<\/td> Length of Credit History<\/strong>
\n
\nHow long have you held a credit facility (credit card or loan).<\/td>\n<\/tr>\n\n\t10%<\/td> New Credit applications<\/strong>
\n
\nYour approval record for new credit facilities (credit card or loan) in the past 12 months.
\n<\/td>\n<\/tr>\n\n\t10%<\/td> Legal Track Record<\/strong>
\n
\nLegal action taken or claims against you as a defendant
\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/span>What are the factors that will affect your credit rating?<\/span><\/h2>\nEach credit rating agency has its own methods of calculating a credit score, and so do financial institutions. These are all based on available information, and not every organisation will have access to the same data.
\nThe calculations themselves are kept secret from the public. Meaning that we cannot precisely say what goes into a credit score. However, we do have a general idea of what factors will influence the final outcome.<\/p>\n
1. Payment history<\/strong><\/p>\nYour payment history takes into account whether you\u2019ve been paying off your debts like credit cards, loans, and mortgages. In this case, a single missed payment probably won\u2019t hurt you all that much; several missed payments will almost certainly send your credit score crashing down.<\/p>\n
Neglecting your loan payments can have dire consequences on your finances. Defaulting on your loan results in bankruptcy, which is the worst-case scenario for your credit health.<\/p>\n
2. High debt-service ratio (DSR)<\/strong><\/p>\nThis category involves the amount of debt you have in relation to your income. Essentially, it compares your monthly commitments (from loans, credit cards, etc) against your salary.<\/p>\n
A high ratio could be a warning that you are taking on more debt that you can manage, and may result in banks declining your loan application.<\/p>\n
3. Too many credit applications<\/strong><\/p>\nEvery time you apply for a credit product, the financial institutions will pull your credit report. This will inquiry will be noted by the credit rating agencies and can be seen by other financial institutions.<\/p>\n
Applying for too many loans and credit cards within a short amount of time will affect your score negatively as banks get suspicious of people who try to take on too much debt too quickly.<\/p>\n
4. Lack of credit history<\/strong><\/p>\nMaybe your credit history is extremely short, leaving very little trace of how you\u2019ve been doing financially. An empty history generally means that you haven\u2019t been taking loans or have never owned a credit card.<\/p>\n
This may happen to younger people who haven\u2019t had time to build a line of credit, but it can also happen to older individuals who have been avoiding financial institutions for whatever reason.<\/p>\n
5. Court cases<\/strong><\/p>\nYou could be one of those unlucky individuals that are facing or have faced legal action; regardless of who is at fault. Potentially being subject to a fine, pay damages, or worse will drag your credit score down.<\/p>\n
<\/span>How can your credit score affect you?<\/span><\/h2>\nWe cannot stress how important it is for you to know your credit score before applying for financial products. It will give you an idea of what to expect when dealing with financial institutions, and there could also be further reaching effects.<\/p>\n
1. You may be declined for credit cards<\/strong><\/p>\nCredit cards can help you save money \u2013 if used correctly \u2013 and earn you plenty of rewards. From movies and groceries to dining and travelling — credit cards can come in handy.<\/p>\n
However, a bad credit score may make it difficult for you to get approved for a credit card. After all, there\u2019s no telling if you\u2019ll actually be able to pay off your bill every month if you have a history of missed payments.<\/p>\n
2. You may not be able to finance a car or a house<\/strong><\/p>\nJust like applying for a credit card, loan applications will be affected by a weak credit score too. Even if your loan gets approved, a low credit score may result in higher interest rates as banks lack the confidence that you will be able to service the loan.<\/p>\n
Higher interest rates mean higher monthly instalments, which could have been avoided if you keep a good credit score.<\/p>\n
3. It may affect potential job opportunities.<\/strong><\/p>\nYou probably never thought about your credit score when applying for a job \u2013 because who does anyway? Potential employers may check on your financial health if you\u2019re applying for a high-level position or a position that involves finances. If it is less than satisfactory, they may decide to offer the job to someone else.<\/p>\n
Employers want someone who is consistent and reliable, and your poor credit score may portray you to be otherwise.<\/p>\n
<\/span>Where can I check my credit score?<\/span><\/h2>\nYou can check your credit report with three Credit Reporting Agencies (CRAs) in Malaysia. These CRAs are governed under the Credit Reporting Agencies Act 2010 and registered to the Registrar Office of Credit Reporting Agencies.<\/p>\n
You can check your credit report with these CRAs in Malaysia:<\/p>\n\n
\n\n\n\tAgency<\/th> Report<\/th>\n<\/tr>\n<\/thead>\n \n\n\tCredit Bureau by Bank Negara Malaysia<\/td> Central Credit Reference Information System (CCRIS)<\/td>\n<\/tr>\n \n\tRAM Credit Information (RAMCI)<\/td> RAMCI Personal Credit Report<\/td>\n<\/tr>\n \n\tCTOS Data Systems<\/td> MyCTOS Score Report<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/span>1. Central Credit Reference Information System (CCRIS)<\/span><\/h3>\n![](\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2015\/08\/ccris.jpg\")
<\/p>\n
The Credit Bureau manages the Central Credit Reference Information System (CCRIS), which is created and owned by Bank Negara Malaysia (BNM). The CCRIS synthesises credit information about a borrower or potential borrowers into standardised credit reports.<\/p>\n
The information is available to financial institutions like banks and the individuals themselves upon request.\u00a0There are three ways you can obtain your credit report from CCRIS:<\/p>\n
BNM\u2019s Customer Service Centre<\/strong><\/p>\nBNM has CCRIS kiosks located in its offices across Malaysia, as well as at the BNMLINK Kuala Lumpur and in AKPK offices nationwide. All you need to do is show up with your MyKad or passport.<\/p>\n
These offices are open Mondays to Fridays from 9am to 5pm; with the exception of the Kuala Terengganu branch that operates from Sunday to Thursday. For more information on where the branches are located, visit BNM\u2019s website.<\/p>\n
By email, fax, or post.<\/strong><\/p>\nIf you can\u2019t make the trip to BNM, you request your credit score from CCRIS by correspondence. This can be done by email, fax, or traditional mail. If you are planning on using the postage service, we recommend using registered mail in order to track its progress.<\/p>\n
You will need to provide the following in order to make a request in this manner:<\/p>\n
<\/p>\n\n\n
\nWhether you pay your loans on time or have missed payments over the last 12 months.
\n<\/td>\n<\/tr>\n
\n
\nTypes of loans and credit cards you hold - secured (home, car loans) vs unsecured credit (credit cards, personal loans), and the amount owed to the banks.<\/td>\n<\/tr>\n
\n
\nHow long have you held a credit facility (credit card or loan).<\/td>\n<\/tr>\n
\n
\nYour approval record for new credit facilities (credit card or loan) in the past 12 months.
\n<\/td>\n<\/tr>\n
\n
\nLegal action taken or claims against you as a defendant
\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n
<\/span>What are the factors that will affect your credit rating?<\/span><\/h2>\nEach credit rating agency has its own methods of calculating a credit score, and so do financial institutions. These are all based on available information, and not every organisation will have access to the same data.
\nThe calculations themselves are kept secret from the public. Meaning that we cannot precisely say what goes into a credit score. However, we do have a general idea of what factors will influence the final outcome.<\/p>\n
1. Payment history<\/strong><\/p>\nYour payment history takes into account whether you\u2019ve been paying off your debts like credit cards, loans, and mortgages. In this case, a single missed payment probably won\u2019t hurt you all that much; several missed payments will almost certainly send your credit score crashing down.<\/p>\n
Neglecting your loan payments can have dire consequences on your finances. Defaulting on your loan results in bankruptcy, which is the worst-case scenario for your credit health.<\/p>\n
2. High debt-service ratio (DSR)<\/strong><\/p>\nThis category involves the amount of debt you have in relation to your income. Essentially, it compares your monthly commitments (from loans, credit cards, etc) against your salary.<\/p>\n
A high ratio could be a warning that you are taking on more debt that you can manage, and may result in banks declining your loan application.<\/p>\n
3. Too many credit applications<\/strong><\/p>\nEvery time you apply for a credit product, the financial institutions will pull your credit report. This will inquiry will be noted by the credit rating agencies and can be seen by other financial institutions.<\/p>\n
Applying for too many loans and credit cards within a short amount of time will affect your score negatively as banks get suspicious of people who try to take on too much debt too quickly.<\/p>\n
4. Lack of credit history<\/strong><\/p>\nMaybe your credit history is extremely short, leaving very little trace of how you\u2019ve been doing financially. An empty history generally means that you haven\u2019t been taking loans or have never owned a credit card.<\/p>\n
This may happen to younger people who haven\u2019t had time to build a line of credit, but it can also happen to older individuals who have been avoiding financial institutions for whatever reason.<\/p>\n
5. Court cases<\/strong><\/p>\nYou could be one of those unlucky individuals that are facing or have faced legal action; regardless of who is at fault. Potentially being subject to a fine, pay damages, or worse will drag your credit score down.<\/p>\n
<\/span>How can your credit score affect you?<\/span><\/h2>\nWe cannot stress how important it is for you to know your credit score before applying for financial products. It will give you an idea of what to expect when dealing with financial institutions, and there could also be further reaching effects.<\/p>\n
1. You may be declined for credit cards<\/strong><\/p>\nCredit cards can help you save money \u2013 if used correctly \u2013 and earn you plenty of rewards. From movies and groceries to dining and travelling — credit cards can come in handy.<\/p>\n
However, a bad credit score may make it difficult for you to get approved for a credit card. After all, there\u2019s no telling if you\u2019ll actually be able to pay off your bill every month if you have a history of missed payments.<\/p>\n
2. You may not be able to finance a car or a house<\/strong><\/p>\nJust like applying for a credit card, loan applications will be affected by a weak credit score too. Even if your loan gets approved, a low credit score may result in higher interest rates as banks lack the confidence that you will be able to service the loan.<\/p>\n
Higher interest rates mean higher monthly instalments, which could have been avoided if you keep a good credit score.<\/p>\n
3. It may affect potential job opportunities.<\/strong><\/p>\nYou probably never thought about your credit score when applying for a job \u2013 because who does anyway? Potential employers may check on your financial health if you\u2019re applying for a high-level position or a position that involves finances. If it is less than satisfactory, they may decide to offer the job to someone else.<\/p>\n
Employers want someone who is consistent and reliable, and your poor credit score may portray you to be otherwise.<\/p>\n
<\/span>Where can I check my credit score?<\/span><\/h2>\nYou can check your credit report with three Credit Reporting Agencies (CRAs) in Malaysia. These CRAs are governed under the Credit Reporting Agencies Act 2010 and registered to the Registrar Office of Credit Reporting Agencies.<\/p>\n
You can check your credit report with these CRAs in Malaysia:<\/p>\n\n
\n\n\n\tAgency<\/th> Report<\/th>\n<\/tr>\n<\/thead>\n \n\n\tCredit Bureau by Bank Negara Malaysia<\/td> Central Credit Reference Information System (CCRIS)<\/td>\n<\/tr>\n \n\tRAM Credit Information (RAMCI)<\/td> RAMCI Personal Credit Report<\/td>\n<\/tr>\n \n\tCTOS Data Systems<\/td> MyCTOS Score Report<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<\/span>1. Central Credit Reference Information System (CCRIS)<\/span><\/h3>\n<\/p>\n
The Credit Bureau manages the Central Credit Reference Information System (CCRIS), which is created and owned by Bank Negara Malaysia (BNM). The CCRIS synthesises credit information about a borrower or potential borrowers into standardised credit reports.<\/p>\n
The information is available to financial institutions like banks and the individuals themselves upon request.\u00a0There are three ways you can obtain your credit report from CCRIS:<\/p>\n
BNM\u2019s Customer Service Centre<\/strong><\/p>\nBNM has CCRIS kiosks located in its offices across Malaysia, as well as at the BNMLINK Kuala Lumpur and in AKPK offices nationwide. All you need to do is show up with your MyKad or passport.<\/p>\n
These offices are open Mondays to Fridays from 9am to 5pm; with the exception of the Kuala Terengganu branch that operates from Sunday to Thursday. For more information on where the branches are located, visit BNM\u2019s website.<\/p>\n
By email, fax, or post.<\/strong><\/p>\nIf you can\u2019t make the trip to BNM, you request your credit score from CCRIS by correspondence. This can be done by email, fax, or traditional mail. If you are planning on using the postage service, we recommend using registered mail in order to track its progress.<\/p>\n
You will need to provide the following in order to make a request in this manner:<\/p>\n
\nThe calculations themselves are kept secret from the public. Meaning that we cannot precisely say what goes into a credit score. However, we do have a general idea of what factors will influence the final outcome.<\/p>\n
Your payment history takes into account whether you\u2019ve been paying off your debts like credit cards, loans, and mortgages. In this case, a single missed payment probably won\u2019t hurt you all that much; several missed payments will almost certainly send your credit score crashing down.<\/p>\n
Neglecting your loan payments can have dire consequences on your finances. Defaulting on your loan results in bankruptcy, which is the worst-case scenario for your credit health.<\/p>\n
2. High debt-service ratio (DSR)<\/strong><\/p>\n This category involves the amount of debt you have in relation to your income. Essentially, it compares your monthly commitments (from loans, credit cards, etc) against your salary.<\/p>\n A high ratio could be a warning that you are taking on more debt that you can manage, and may result in banks declining your loan application.<\/p>\n 3. Too many credit applications<\/strong><\/p>\n Every time you apply for a credit product, the financial institutions will pull your credit report. This will inquiry will be noted by the credit rating agencies and can be seen by other financial institutions.<\/p>\n Applying for too many loans and credit cards within a short amount of time will affect your score negatively as banks get suspicious of people who try to take on too much debt too quickly.<\/p>\n 4. Lack of credit history<\/strong><\/p>\n Maybe your credit history is extremely short, leaving very little trace of how you\u2019ve been doing financially. An empty history generally means that you haven\u2019t been taking loans or have never owned a credit card.<\/p>\n This may happen to younger people who haven\u2019t had time to build a line of credit, but it can also happen to older individuals who have been avoiding financial institutions for whatever reason.<\/p>\n 5. Court cases<\/strong><\/p>\n You could be one of those unlucky individuals that are facing or have faced legal action; regardless of who is at fault. Potentially being subject to a fine, pay damages, or worse will drag your credit score down.<\/p>\n We cannot stress how important it is for you to know your credit score before applying for financial products. It will give you an idea of what to expect when dealing with financial institutions, and there could also be further reaching effects.<\/p>\n 1. You may be declined for credit cards<\/strong><\/p>\n Credit cards can help you save money \u2013 if used correctly \u2013 and earn you plenty of rewards. From movies and groceries to dining and travelling — credit cards can come in handy.<\/p>\n However, a bad credit score may make it difficult for you to get approved for a credit card. After all, there\u2019s no telling if you\u2019ll actually be able to pay off your bill every month if you have a history of missed payments.<\/p>\n 2. You may not be able to finance a car or a house<\/strong><\/p>\n Just like applying for a credit card, loan applications will be affected by a weak credit score too. Even if your loan gets approved, a low credit score may result in higher interest rates as banks lack the confidence that you will be able to service the loan.<\/p>\n Higher interest rates mean higher monthly instalments, which could have been avoided if you keep a good credit score.<\/p>\n 3. It may affect potential job opportunities.<\/strong><\/p>\n You probably never thought about your credit score when applying for a job \u2013 because who does anyway? Potential employers may check on your financial health if you\u2019re applying for a high-level position or a position that involves finances. If it is less than satisfactory, they may decide to offer the job to someone else.<\/p>\n Employers want someone who is consistent and reliable, and your poor credit score may portray you to be otherwise.<\/p>\n You can check your credit report with three Credit Reporting Agencies (CRAs) in Malaysia. These CRAs are governed under the Credit Reporting Agencies Act 2010 and registered to the Registrar Office of Credit Reporting Agencies.<\/p>\n You can check your credit report with these CRAs in Malaysia:<\/p>\n\n The Credit Bureau manages the Central Credit Reference Information System (CCRIS), which is created and owned by Bank Negara Malaysia (BNM). The CCRIS synthesises credit information about a borrower or potential borrowers into standardised credit reports.<\/p>\n The information is available to financial institutions like banks and the individuals themselves upon request.\u00a0There are three ways you can obtain your credit report from CCRIS:<\/p>\n BNM\u2019s Customer Service Centre<\/strong><\/p>\n BNM has CCRIS kiosks located in its offices across Malaysia, as well as at the BNMLINK Kuala Lumpur and in AKPK offices nationwide. All you need to do is show up with your MyKad or passport.<\/p>\n These offices are open Mondays to Fridays from 9am to 5pm; with the exception of the Kuala Terengganu branch that operates from Sunday to Thursday. For more information on where the branches are located, visit BNM\u2019s website.<\/p>\n By email, fax, or post.<\/strong><\/p>\n If you can\u2019t make the trip to BNM, you request your credit score from CCRIS by correspondence. This can be done by email, fax, or traditional mail. If you are planning on using the postage service, we recommend using registered mail in order to track its progress.<\/p>\n You will need to provide the following in order to make a request in this manner:<\/p>\n<\/span>How can your credit score affect you?<\/span><\/h2>\n
<\/span>Where can I check my credit score?<\/span><\/h2>\n
\n\n
\n\t \nAgency<\/th> Report<\/th>\n<\/tr>\n<\/thead>\n \n\t Credit Bureau by Bank Negara Malaysia<\/td> Central Credit Reference Information System (CCRIS)<\/td>\n<\/tr>\n \n\t RAM Credit Information (RAMCI)<\/td> RAMCI Personal Credit Report<\/td>\n<\/tr>\n \n\t CTOS Data Systems<\/td> MyCTOS Score Report<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/span>1. Central Credit Reference Information System (CCRIS)<\/span><\/h3>\n
<\/p>\n
![](\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2019\/06\/RAMCI-Sample.jpg\")
<\/p>\n![](\"https:\/\/static.imoney.my\/articles\/wp-content\/uploads\/2019\/06\/MyCTOS-Score-800x510.jpg\")
<\/p>\n