Factors That Affect CCRIS and CTOS scores

Before we start, here’s what you need to know about Central Credit Reference Information System (CCRIS) that is controlled and run by Bank Negara and Credit Tip-Off Sdn Bhd (CTOS) that is done by private companies. The infographic below tells you the difference between CTOS and CCRIS:

If you are applying for a loan or rent such as a car or a house, you need to know about the 5C’s which the financial institution is focused on. The 5C’s are: Character, Capital, Capacity, Condition, and Collateral.

1. Character

This aspect takes into account your take on loans. If you pay your monthly dues on time, you will get an A. Companies/banks will also look at the place you are studying, working or even your business.

2. Capital

Capital consists of your savings and/or investments. The more savings/bigger investments you have and/or make, the better your credibility is as banks will see you as a low risk and are more likely to approve your loan.

3. Capacity

Capacity is the total income you receive. It gives the bank input to determine if you are able to pay debts later on. So you need to make sure you have a liquid cash flow.

4. Condition

This aspect looks at the reason for your loan. Either for a renovation, to pay back your debts or acquiring assets, every loan brings its own risks that banks will have to consider. 

5. Collateral

This aspect looks into the total asset that can be used as collateral for the loan such as properties or vehicles you own. If you are unable to pay your debts, you can still use these assets to clear them off later on.

Please be sure that you fully understand and take care of your 5Cs to get your loans approved and maybe (hopefully) get the best interest rates from the banks.

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