CCRIS stands for Central Credit Reference Information System and issued by BNM.
CCRIS is your financial health report that records all your credit information from Malaysia financial services providers, such as credit card, insurance and loan. Individual is free to request their CCRIS record as well as financial institution. Therefore, it gives the loan providers an assessment of your suitability to apply for a loan from them.
CCRIS does not give a direct score or rating of the individual’s credibility or financial situation and it consists of three major information:
1. Outstanding credit – Information on outstanding amount, limit, payment behavior of housing loans, hire purchase, credit cards, personal loan and overdraft etc.
2.Special attention account – Account that is put under special monitor by a financial institution, usually an account deemed non-performing loan or under special debt management schedules.
3. Application for credit – All credit facility applications and approved credit application information made in the past one year.
This information is important to banks when an individual is applying for a home loan, personal loan and car loan.
The good news is CCRIS only shows repayment records of the last 12 months, after which the oldest data is expunged. If your credit utilization has been high for the past 12 months, here are some tips on how to improve your CCRIS report to increase your chance of loan approval.
1. Make payments on time, on or before the due date. It reflects your credibility when you’re overdue by two months or more.
2. Avoid mass applying for credit. You risk leaving a record of potential rejections. Find out what the borrowing requirements are and choose the one that best matches your financial standing.
3. Pay off smaller outstanding debts in full. This helps to ease your existing financial obligations and hence appears more favorable in the eyes of lenders.
4. Avoid the bad record, if you have missed some payments, it will stay in your CCRIS record for 12 months.
A bad score can be fixed, but having no score is also bad because creditors cannot profile you and decide if you would be a good borrower.
Therefore, you are advised to get at least a credit card for future loan applications.