How CTOS and CCRIS affect your loan application

Two reports, two different sources

When you apply for a property refinance or a personal loan in Malaysia, the bank does not rely only on the forms you fill in. It also checks your credit history. Two names come up again and again: CCRIS and CTOS. They are related but not the same, and understanding the difference helps you prepare an application that a bank can assess properly.

CCRIS

CCRIS stands for the Central Credit Reference Information System. It is run by Bank Negara Malaysia (BNM) and collects information on credit facilities from the financial institutions that report to it. A CCRIS report shows your outstanding facilities, such as housing loans, hire purchase, personal financing and credit cards, together with your repayment record over the last 12 months.

Each month is shown as a number of instalments in arrears. A row of zeros means payments were made on time. A figure of 1, 2 or higher means one or more instalments were outstanding at that point. The report also shows applications that are still pending or were recently approved, and whether any account has been placed under special attention.

You can request your own CCRIS report from BNM at no charge, online through eCCRIS or through BNMLINK and BNM's other public channels.

CTOS

CTOS is a private credit reporting agency registered under the Credit Reporting Agencies Act 2010. Its reports draw on several sources. They can include CCRIS information (with your consent), trade references submitted by businesses, and public records such as legal cases, bankruptcy proceedings and company directorships. CTOS also produces a credit score, commonly called the CTOS Score, which summarises your profile as a number.

You can obtain a copy of your CTOS report from CTOS directly. Some basic reports are available free of charge, while more detailed reports are offered for a fee.

What banks look at

Each bank has its own credit policy, so the same report may be read differently by two lenders. Broadly, credit officers tend to focus on the following:

• Repayment conduct. Recent arrears matter more than older ones. A few late payments a year ago are usually viewed differently from missed payments in the last three months.
• Number and size of arrears. Being one instalment behind once is not the same as being three instalments behind across several facilities.
• Total commitments and DSR. Banks add up your monthly instalments, including the new one you are applying for, and compare them with your income. This is the debt service ratio (DSR). Each bank sets its own acceptable level, often depending on income bracket.
• Special attention accounts. An account flagged as a special attention account (SAA) indicates that a facility is being closely monitored, for example after restructuring or serious arrears. This is often a significant factor.
• Legal and bankruptcy records. Legal actions, judgments or bankruptcy status shown in a CTOS report can weigh heavily in an assessment.
• Recent applications. Many applications in a short period can suggest that you are seeking credit in several places at once, which some banks treat with caution.

None of these points on its own decides an application. Banks look at the full picture: income, employment, the type of loan, the security (if any) and your credit history together.

"Blacklisted": a common misconception

People often say they have been "blacklisted" by the banks. In practice, there is no single official blacklist in Malaysia. What exists is a record of your credit history and certain legal information, and each bank decides for itself how to treat that record. A person who is declined by one bank may be assessed differently by another, and a person with a clean record can still be declined for other reasons, such as income or commitments.

Be careful with anyone who offers to "clean" or "remove" your records for a fee. Accurate credit information cannot be deleted simply because it is inconvenient. It is updated as your circumstances change, for example when arrears are settled or accounts are closed, according to the rules that apply to each report.

Checking your own reports

Before you apply for any financing, it is sensible to look at your reports yourself. When you do, check:

• that every facility listed belongs to you and the balances look reasonable;
• the monthly arrears figures, especially for the most recent months;
• whether any account is marked as special attention or under legal status;
• for any legal case, bankruptcy entry or trade reference you do not recognise;
• your personal details, such as your name, MyKad number and address.

If something is wrong

Occasionally a report contains a genuine error: a facility that has been fully settled but still shows as outstanding, or an entry that belongs to someone else. In those cases:

• For CCRIS, contact the financial institution that reported the information and ask it to review and update the record. BNM can also guide you on the process.
• For CTOS, use the CTOS dispute process and supply supporting documents, such as a settlement letter or a release letter.

Keep copies of all letters and receipts. The time taken to review and update a record depends on the institution and the reporting cycle, so it is best to check your reports well before you intend to apply. Only errors can be corrected this way. Accurate information about past arrears remains part of your history.

How SMN reviews your reports with you

At SMN Capital Solution, reviewing your credit reports is one of the first steps of every consultation. We are a loan consultancy, not a lender, and we cannot remove, alter or bypass CTOS or CCRIS records. What we can do is help you understand them.

We go through the reports with you, explain what a bank is likely to notice, and estimate your commitments against your income. If your profile is not ready, we say so and suggest practical steps, such as settling outstanding arrears or reducing commitments before applying. If it is ready, we identify which of our partner banks are more likely to consider a profile like yours, and prepare the application so that your situation is explained clearly.

Approval and final terms always rest with the bank. A careful review simply means you apply with a clearer understanding of where you stand.

Key points

• CCRIS is BNM's system showing 12 months of repayment conduct. You can request your own report from BNM free of charge.
• CTOS is a registered private credit reporting agency whose report can include legal records, trade references and a credit score.
• Banks focus on recent conduct, arrears, total commitments, special attention accounts and legal records.
• Genuine errors can be raised with the reporting institution or through the CTOS dispute process. Accurate records cannot be removed on request.

If you would like us to look at your reports together with your documents before you apply, send us an enquiry. There is no fee to submit an enquiry, and any fees are explained upfront before any engagement.