How does your Credit History Affect you?
The main thing that your credit history affects is your eligibility to apply for credit products, including credit cards and any kind of loans (housing, auto and personal). CCRIS and DCHEQS are internal systems within Bank Negara, and CTOS, RAM and FIS are private 3rd party companies which hold credit information and are frequently used by banks, insurers, suppliers etc. to determine your credit history/rating.
Central Credit Reference Information System (CCRIS) is the computerised database maintained at the Credit Bureau, Bank Negara Malaysia since 1982 under the Bank of Malaysia Act 1958. Financial institutions in Malaysia will send a monthly report of all their borrowers to the Credit Bureau.
Data received by the Central Bank regarding loans given by financial institutions will be processed by CCRIS in order to format a credit report. This report can be accessed by any financial institution upon request. The financial institution is required to inform the applicant,in writing, that a credit check is to be conducted under the applicant's name and that the credit facility application will be reported to the Credit Bureau.
How Does CCRIS Affect You?
A CCRIS report contains factual and historical information on the loan amount, interest and charges outstanding on each loan (like housing loan, personal loan, hire purchase, credit card and overdraft). It also shows the amount of each monthly payment to be in arrears to the bank for one year (12 months). By having this CCRIS report, the financial institutions can assess your credit rating by analysing each loan by the loan balance and payment record of the loan.
Typically, financial institutions will reject an application if there are 2 month in arrears of loan payment for each loan the applicant has undertaken. However, some financial institutions will reject loans if there is a debt ratio of 50% or more. Ultimately, lending decisions depend on the risk evaluation by the financial institutions. It highly depends on the financial institutions’ policies.
Using the same information from the credit report and other sources, one lender may approve an application while another may not. The Credit Bureau does not express any opinion on the information provided in the credit report.
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