5 Ways To Improve Your Credit Report

Why is it necessary to have a good credit report? What should one do to make his credit report appealing to the financial institutions? Read on to learn more.
Factors influencing your Credit Score and how to improve them.

By Mangalesri Chandrasekaran


A credit report is a detailed report which comprises an individual’s financial status, mostly used by banks to determine a borrower’s creditworthiness.

This report will include detailed information of a person’s borrowing such as existing loans, approved loans, rejected loans, payment behavior, accumulated charges, bankruptcies and so on.

Based on the information in the credit report, banks typically are able to calculate a credit score which determines if a loan applicant qualifies for a loan, the amount to lend and at what interest rate.

In Malaysia, Bank Negara Malaysia (BNM) manages the Central Credit Reference Information System (CCRIS), a system which contains a database of one's banking payment history.

Today, Credit Reporting Agencies (CRA) such as CTOS has been provided access to the CCRIS database and are also able to provide you a CTOS Credit Report which contains CCRIS information.

What a credit report such as CTOS or CCRIS contains. Factors influencing your Credit Score and how to improve them.

The information disclosed by the CRAs in a credit report are entirely factual and historical. A credit report does not make a recommendation or provides an opinion to the financial institutions.

Another important fact to note is that each bank has a different set of policies when approving loans. Hence, they may place importance on different information contained in the report.

Usually, the approval of loans will depend on the risk management practices of each bank, based on the borrower’s credit report.

The information in the CCRIS also includes the number of new loans applied in banks. Which means the banks are fully aware of the number of loans applied, if any.

This might send a negative signal to the banks as your credit applications does affect your credit rating. So in the event of having a bad credit report, what one can do to improve?

List of items that gives a bad impression to the banks for your credit score


Tips To Improve

Most people are unaware of the importance of having a clean credit record.

It is important to ensure a clean credit record, as it showcase your creditworthiness to the financial institutions when you apply for any of the below items:

  • Credit cards
  • Personal loans
  • Hire purchase loans
  • Mortgage loans
  • Any other loans

In the event of having a bad credit record, you might end up getting a lower loan amount than the one you applied for or pay higher interest rate than normal.

In some cases, the loan application might get rejected as well. Here are the things you can do to get your credit report back on track:

  1. Pay and reduce some of your credit lines, especially if you have high credit utilization on your credit card.
  2. If you have late payment records, pay promptly and wait for 12 months from your final late payment date before submitting a loan application.
  3. Try to get the bank to delay the billing cycle if the due date is earlier than your pay day.
  4. If you’re planning to submit a loan application, try to settle some of the existing credit lines by 1st to 9th of the month, as CCRIS will be updated on the 10th of each month.
  5. Having no credit history is bad, as banks would not provide a full margin of finance if a person’s credit profile is empty. Try to have at least one facility with the bank and make prompt payment.

Factors influencing your Credit Score and how to improve them.

Having a bad credit report may cause you difficulty when you try to get financing for your home, car or any financial product.

Therefore, it is vital to keep a clean credit report by servicing your loans and other payments on time.

You can take the first step by finding out your personal credit report. CRAs such as CTOS offer a basic credit report for free on their website (http://www.ctoscredit.com.my/myctos).

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