Looking forward to making that deposit in your first home? Or, planning to purchase a new ride? Most likely, you are searching for the most favorable interest rates and the most convenient loan options from various financial institutions. As the search and loan application process begins, have you ever wondered what takes place behind the scenes that gets your loan application approved or not?
CCRIS is Bank Negara Malaysia’s (BNM) Central Credit Reference Information System. Simply put, it is a huge database that carries credit information from participating financial institutions like
Government agencies (i.e. PTPTN)
Telcos (i.e. Maxis, Celcom, Digi)
Credit leasing companies (i.e. car dealerships)
CCRIS’ database pools all credit information from the various institutions above and houses financing details of all participating borrowers. Participating financial institutions are required to report the following information on a regular basis:
Profile of the borrower – i.e. full name, identity card/business registration number, date of birth/registration, address, etc;
Credit application details – such as the amount applied, date of application, type of facility; and
Credit account details – i.e. type of credit facilities, credit limit, outstanding balance, installment amount, conduct of account and legal action status, if any.
All of the information and data is then compiled into a credit report which financial institutions like banks will have access to. In general, CCRIS’ credit report provides a 12-month overview.
Did you know?
There’s a common misconception that CCRIS carries the blacklist of all defaulted borrowers or those with poor loan repayment history. This has been clarified by BNM as False.
Knowing where you stand – the CCRIS report
How do you know if you are eligible for a loan or credit? This will depend on your credit worthiness. Credit worthiness reflects your ability to pay back a debt. It shows how disciplined you are in fulfilling your financial obligations.
CCRIS calculates credit worthiness in real time and compiles it into a credit report for an overview.
The finance and banking industry thrives on information about applicants’ borrowing history and repayment management habits – for example credit card outstandings, student loans, trade facilities, home and vehicle loans. The CCRIS report helps prospective lenders to determine whether the loan request is solid enough to be bankable.
Imagine a corporate position as a senior executive for 3 years. He was a PTPTN scholar and is still servicing the loan. He has found his very first dream apartment and has applied for a loan. The bank he applies to will make an inquiry through the CCRIS system for access to his personal and financial data. The report will reflect Alex’s personal and employment details, his salary, outstanding loans and debt repayment history. If Alex has been repaying his PTPTN including other (e.g., car loan) payments regularly, and does not have any legal action against him, the CCRIS report will reveal this. Therefore, Alex stands a high chance of getting a loan.
It is worth noting that even with a stellar credit rating, the result of a loan application is down to each bank’s individual assessment criteria. In Alex’s case, even if the 1st bank he applied for a home loan with is rejected, it does not mean that the next bank will reject it. This is because different financial institutions have different lending policies, depending on their risk appetites.
Who is eligible for the CCRIS report
The CCRIS report is available to the following parties upon request:
Financial Institutions – upon receipt of a credit application or when reviewing existing customers.
Individuals – requesting their own credit report. Or, as an individual business owner seeking reports for your sole proprietorship, partnership, or professional body.
Companies – requesting their own credit report.
Registered credit agencies – only for agencies approved by BNM or with prior consent from the borrower.
BNM has assured that the CCRIS report is confidential. Participating financial institutions are bound by the banking secrecy laws in Malaysia’s banking and financial acts.
Should I get my own CCRIS report?
It is wise to have an idea of how creditworthy you look, in the eyes of Malaysia’s banks and money lending companies. Take the CCRIS report as your financial health report card to see if you are qualified to borrow money for a dream pad. Here’s how you can access your personal credit report:
Online via eCCRIS
BNM’s eCCRIS platform is accessible online. It is hassle free and a convenient way to access your report. It is also secure and easy to use. The service is free but is only applicable to individuals with MyKad and an online banking facility. RM1 will be charged through the online banking account upon the initial registration for ID verification. This will be refunded within 2 days after successful registration.
(Insert pix in para – CCRIS kiosk. Image via press reader)
If you do not have an internet banking facility or have not opened a bank account yet, you can get a copy of your credit report via CCRIS kiosks at any Agensi Kaunseling dan Pengurusan Kredit (AKPK) offices available nationwide. You will need your MyKad for fingerprint verification before the report is printed. AKPK’s location and operation hours can be found这里.
Similar to CCRIS kiosks,eLINK is another alternative to get your personal report. Suitable for non-Malaysians and Malaysians without a bank account, eLINK requires the completion of an application form plus supporting documents such as utility bills registered in the applicant’s name for verification purposes. Once complete, you can email your request for a report through email, post or fax.
You can request a copy of your credit report in person at BNM’s Head Office and its Regional Offices. There, you will be required to complete an application form and present it along with a copy of your MyKad and requested supporting documents such as a driving license, passport or utility bill. The application form can be downloaded and printed in advance from BNM’seLINK.
Do note that requests for CCRIS reports through these agencies may be charged.
Overview of the CCRIS report
The CCRIS credit report will contain your following information:
Outstanding Credit: All credit facilities which are still outstanding that you may have – whether the loan / credit is personal or in a joint name with another borrower(s). If you own a business, then it will show the name of a sole proprietorship or partnership where the borrower is the owner of the partnership or the business / the name of a professional body where the borrower is a member of the body or the name of a corporation.
Special Attention Account(s): All outstanding credit facilities under close supervision of the participating financial institutions.
Application(s) for Credit: All applications approved in the previous 12 months and pending applications for the borrower.
BNM is impartial and does not get involved in any of the financial institution’s lending decisions. The CCRIS report does not carry a direct credit score or rating. What it does is provide a relevant and comprehensive credit history up to a period of 12 months, by which you can be assessed on an individual basis by lenders and financial institutions.
The Special Attention Account
Loans reported under the Special Attention Account are non-performing loans (NPL). In other words, the debtor has stopped repaying the loan for a long period, e.g., more than 90 or 180 days. The bank or financial institution then places this account under strict monitoring in view of recovering the loan. Note that dishonored or bounced cheque payments and special debt management schedules with AKPK will also be recorded here.
Until the loan is recovered, you will no longer be eligible for future loans. Certainly, one does not want to be ‘special’ in the CCRIS report.
The myth about blacklists
Bank Negara Malaysia does NOT blacklist anyone as it is impartial and does not express any opinion about the information in the credit report. CCRIS reports contain factual information about a potential borrower’s credit history to assist financial institutions in their evaluation of creditworthiness. This may include background checks from various sources. Financial institutions use all available data to make informed decisions and be prudent in their loans and credits given to borrowers.It is a relief to know that you will not be blacklisted in the CCRIS or other bureaus’ credit reports if:
– your loan or credit application is denied by a financial institution.
– you have accidentally missed your credit card or loan repayment by a month.
– you are embroiled in a legal case due to non-repayment of loans.
Be aware though that these will be reflected in your CCRIS report and will negatively impact your credit worthiness.
Maintaining a healthy CCRIS standing requires you to resolve late repayments directly with your bank, and not with BNM.
Is a credit record necessary? I am practically debt free!
A GOOD credit record is better than a ZERO credit record. Banks are unable to assess you if you have nothing to show. This might create a misconception that you have bad credit history as your loans do not seem to be getting approved by other financial institutions.It makes sense to have at least one well maintained borrowing to show. The simplest one is easy, yet amazingly convenient – Credit Card.
Who can access my CCRIS report?
Besides yourself and the bank where you have applied for a loan from, no other person or financial institution can retrieve or view your CCRIS report. Any attempt to do so is considered unlawful and can be subject to penalties under the Central Bank of Malaysia Act 2009.
For verification and security purposes, you can only obtain your report through BNM, its selected agents or eCCRIS. Not through phone calls with BNM nor through making a request via your bank and definitely not through a proxy.
How current is the CCRIS report?
BNM normally updates its database by the 10th of each month based on information provided by the participating financial institutions.
How important is it for me to check my credit report?
Regularly checking your credit history can help you better understand your current credit position and what lenders may see. It can also help you detect any inaccurate or incomplete information and even prevent identity theft or fraud. Some common instances where details were not reflected in the report or cases of fraud :- after having successfully settled a loan.
– having been cleared from bankruptcy after paying off your debts.
– unknown telco unpaid bills in your name.
For any resolved credit issues not shown in the CCRIS report, do take up the matter directly with your bank, credit company or insolvency department to clarify.
In order to keep a good CCRIS track record, here’s what to avoid:
Too many loans or credit.
Maxing out your credit (e.g., your credit card limit)
Now that you know how easy it is to get a copy of your CCRIS report, there is no better time like the moment to get on top of your finances. Maintain it well with good financial management. This means paying your installments and bills promptly, planning your finances wisely and living within your means by not maxing out on your credits. With sound credit worthiness, banks will look upon you favorably. You are well on your way to acquiring more new assets, properties and commodities.