If you are applying for a personal loan or credit card, you need to know the state of your credit score. Applicants with a low credit score are likely to be given a high interest rate or your loan will be declined.
Central Credit Reference Information System (CCRIS)
Credit information is collected by CCRIS (Central Credit Reference Information System, records maintained by Bank Negara) and other credit reporting agencies such as CTOS and RAMCI based on your loan repayment behavior with banks and credit companies. Your payment history for personal loan, home, and car loans, credit cards, student loans with PTPTN are all part of credit information handled by CCRIS and other credit reporting agencies.
Low Credit Score Caused By Late Payment
If you fail to make the payment on time or do not pay the loan or credit card directly, as well as legal action taken against you for not making the payment as promised, it will be recorded in your credit report.
Utility services such as telephone bills will also be included in your credit report when you fail to make payments and this may cause you to have difficulty getting a loan.
You can still try to make a conventional loan. However, depending on the value of your score, you may be offered a high interest rate loan, worse, your application will be rejected.
How to fix a credit score?
If you have a low credit score, you can take steps to improve your credit score. This will give you a better chance of making a good loan. Here we have three ways to improve your credit score:
- Pay off any arrears and debts as soon as possible. It will take 12 months for your report to be free of any late payment records.
- Check your credit report every year and see if any information is inaccurate. If you have any problems, resolve them immediately.
- Pay taxes and settle all your bills on time. If you have a hard time remembering to make a payment, you can create a payment schedule with your bank automatically.