Difference between CCRIS and CTOS
Property can get really unaffordable nowadays and that is why more people are looking for houses for rent. In addition, getting a housing loan nowadays is not an easy feat. The terms CCRIS or CTOS always come out whenever you apply for a financial product, such as credit card, or loans. But you don’t know what exactly CCRIS or CTOS is and what the differences are between them. Fret not, this article will simplify it and list down the differences between CCRIS and CTOS.
You should get yourself familiarized with CTOS. Most people get confused between the difference of CCRIS and CTOS. CCRIS is a plateform managed by the Credit Beureau of Bank Negara Malaysia, where it provides credit reports. As for CTOS, it is a Credit Reporting Agency (CRA) in Malaysia under the Credit Reporting Agencies Act 2010.
CTOS is a platform that create transparency and provide confidence for people (bank and lender) to make transactions, as both parties will be able to get the applicant’s credit information. You can also use the services at CTOS to check on your own credit report before applying for a bank loan.
WHAT IS CCRIS
CCRIS, also know as the Central Credit Reference Information provides your credit reports and it is managed by the Credit Bureau of Bank Negara Malaysia. CCRIS collects all credit related information on borrowers of participating financial institutions, including individuals, businesses, companies, associations, professional bodies, societies, associations and government entities. Financial institutions encompass all the licensed commercial banks, investment banks, Islamic banks, development financial institutions and other financial institutions, such as insurance companies, rehabilation companies, payment instrument issuers, building societies, government agencies and credit leasing companies.
The participating financial institutions will be required to give reports on regular basis, with information such as:
- Profule of borrower, i.e. name, identity card, business registration number, date of birth, address and so on;
- Credit application details, i.e. date of application, amount applied, type of facility; and
- Credit account details, i.e. type of credit facilities, outstanding balance, credit limit, conduct of account, installment amount legal action status, if any.
These information will then be compiled into a credit report where banks or other financial institutions will have access to.
The CCRIS credit report consists of the following information of borrower:
- Outstanding Credit
- Special Attention Account
- Application for Credit
The CCRIS does not only show negative credit information of individual, as it will show positive information such as positive repayment history and credit approvals as well. Most people have a misconception that CCRIS blacklists you, if you have bad repayment pattern. However, CCRIS does not blacklist any individual nor does CCRIS provide comment on any individual. CCRIS proides only factual data that will be usd by financial institutions.
You can obtain your CCRIS credit report from the Bank Negara for free, but you will need to go to AKPK to get your 6-digit pin code from the CCRIS Kiosk or Bank Negara.
WHAT IS CTOS
CTOS is widely used in Malaysia as well. CTOS is a private company and one of Malaysia’s leading Credit Reporting Agency (CRA). This Credit Reporting Agency is under the Credit Reporting Agencies Act 2010. Similar to CCRIS, CTOS provides credit reporting as well and is widely and commonly used by financial institutions to decide the applicant’s credit worthiness. Most of the time, the financial institutions use more than 1 credit report to decide the applicant’s credit health.
CTOS produces your MyCTOS Score Report and MyCTOS Basic Report, with the information they obtained from a few public sources, such as:
- National Registration Department
- Malaysia Insolvency Department
- Registrar of Societies
- Companies Commission Malaysia
- Subscribers’ contributions of litigation records
- Publications of legal proceedings and the notices from government gazettes and newspapers
The types of information related to credit that will be included in your credit report from CTOS will also include other information, such as, legal action, bankruptcy and case status. In addition, it will also include the detail of one’s business ownerships, business directorships, and business expore, if any.
Similar to CCRIS, CTOS does not blacklist anyone nor does CTOS provide comments on anyone. Individual can also obtain your credit report from CTOS through MyCTOS. You will need to register first to get your CTOS ID. Once your ID is activated, you will then be able to access your credit report through MyCTOS anytime through the Internet or the CTOS app.
In conclusion, you should understand and get yourself familiar with CCRIS and CTOS before deciding to buy a house. Make sure you are free from debt and not in many financial commitments to get a higher chance to secure a bank loan. Once you manage to secure yourself a mortgage loan by the pank, the remaining steps will be so much easier and you can start planning on which interior designer to engage and which furniture to buy for your house.