Everything You Should Know about Credit Score in Malaysia

Securing a credit card can be a great way to manage your finances, but it depends on how you handle its usage. With a credit card, not only can you save a lot of time, but you can also do payments for any sort of services without any difficulties. If you are financially established, registering for a credit card can definitely be a convenience. You can do payments with a single swipe at any stores and restaurants and pay off bills with ease.

There are a few requirements needed in order for you to be eligible for a credit card. It is not as easy as you might think; you have to consider several factors such as credit history, credit rating and credit score. It is important to ensure your credit score remains within its required level to qualify for credit card ownership.

What are Credit History and Credit Report?

With the rise of a cashless society in Malaysia, credit card users continue to increase over the years. Proper credit card usage is crucial in order to secure your future credit card and personal loan application.

Credit history refers to the record of the amounts you owed as well as other debt payments. This record or data is meant to show your ability in repaying all the debts you made.

A credit report details out your credit history with a summary of your financial statements and credit activities to determine your creditworthiness.

How to obtain a credit report?

You can obtain credit information from the Credit Bureau. If you wish to view your credit report, it can be done by sending a request to Bank Negara Malaysia, CCRIS or CTOS. This only applies to individual report, as for an organisation or a deceased person, the request can be made by an authorised person from the company or the court for the deceased.

The process is free of any charges, you will need to bring along some required documents for verification purposes like MyKad, license or passport. You can get a credit report in your hands on the same day.

What are CTOS and CCRIS?

When applying for loans, CTOS and CCRIS are no stranger terms. They are very important for Malaysians to understand how credit reports work.

CTOS is a private company that provides credit reporting. In Malaysia, it is registered by name CTOS Data Systems Sdn Bhd, one of Malaysia’s top Credit Reporting Agency (CRA) used by financial institutions to determine your creditworthiness. CTOS gathers credit information from various public sources such as the National Registration Department, Registrar of Societies, Companies Commission Malaysia (CCM) and more.

CCRIS is managed by Bank Negara Malaysia under the Credit Bureau. The Central Credit Reference Information System (CCRIS) provides credit reports and collects borrowers’ credit information from financial institutions. The information gathered in the report includes borrower’s profile, credit application and account details.

The difference between CTOS and CCRIS is how the information is being gathered. The former gets information by public sources while the latter retrieved data from financial institutions.

What is a credit score?

A credit score refers to the numerical data obtained from your credit usage and history. It is a three-digit number that shows your possibility in repaying the debt. Credit score determines the risk a lender is about to take when you owe money.

Maintaining your credit score is vital for you to show how responsible you are when dealing with debts. With a low credit score, it means that you have outstanding debts and other qualities that can make you unqualified to have more debts in the future. On the other hand, a high credit score portrays your ability and responsibility in committing to your debts by paying them on time.

An ideal credit score falls in the range between 697 to 850, but other factors to determine your qualification will also be considered when applying for a credit loan.

How to do a credit check in Malaysia?

If you’re planning to apply for a loan, you must first do your credit check so that your application will not be rejected. You can use two systems to check your credit score, which are CCRIS and CTOS.

Getting your credit check details from CCRIS can be done at any Bank Negara Malaysia (BNM) branches. Just look for CCRIS kiosk, insert your MyKad for thumbprint verification and get your credit report printed just at your fingertips.

As for CTOS, you can log in to CTOS website, fill in all required details and follow the instructions given before requesting for TAC number. You will receive an update email regarding your CTOS activation. Next step is to click “Do Self Check”, acknowledge all the information and explanation given carefully, then click “Submit CTOS Self Check”. A CTOS Self Check Report will be sent to your email.

What factors determine your credit score?

A credit score is determined based on your payment history, credit mix, the amount of loans you owed, the length of credit history, applications on new credit and legal track record. These factors will determine your creditworthiness, reflect your attitude in taking care of your loans, stating your capital or assets and your ability to pay off the debts.

How long will it take to rebuild my credit?

It takes time for you to fix your credit history if your existing record does not meet the requirements. Depending on your financial situation, it can take from months up to years of rebuilding credit report. If you continuously commit to doing payments on time, your credit history will shift and change gradually. Keep in mind that if you already dotted a black mark on your history, it may lead to more than five years of waiting.

How to improve credit score?

There are a few tips on how you can improve your credit score. Be reminded again that a good credit history shows that you are qualified for loans. What you can do is to start building strong credit history early, follow the schedule of your pay-bill payment and try to maintain your debts as low as possible to avoid the risk that could affect your credit history. However, if you have issues with your credit history, it is very crucial to fix it so that it will not give any impact for loans or credit you are applying for.


When it comes to tying yourself up with financial commitments, it requires you to be stable and responsible to clear off the debts. Once you have applied for a credit card, be sure to manage your finances properly. If you are committed to paying off your loans, it will result in a better credit score and of course, your credit history will be free from any negative remarks. Handle your credit wisely because your future financial planning depends on it.