CAN CCRIS BLACKLISTED APPLICANT APPLY FOR HOUSING LOAN?

In a statement released in 2016, Maybank mentioned that that the overall rejection rate of affordable housing loans ranges from 19% to 36% rejection rate. One of the main reasons for these failed applications was a less than stellar credit performance report from the Central Credit Reference Information System or more commonly known as CCRIS. The question is always on whether can CCRIS blacklisted applicant apply for a housing loan.

CCRIS along with CTOS, are often looked upon with fear among Malaysians. To many, blacklisting caused by CCRIS and CTOS are often the last hurdle in the application of a much-needed loan for businesses or housing. Often misunderstood for rejecting loan applications and backlisting PTPTN defaulters, these two agencies are often looked upon in the bad light.

What Is CCRIS

The Central Credit Reference Information System (CCRIS) is being overseen by Bank Negara Malaysia (BNM). BNM is entrusted to establish Credit Bureau to collect credit-related information and data on borrowers from lending institutions and furnish the necessary information in a credit report to any authorised requesting lending institutions via a centralised online system. Since coming online, CCRIS has become a vital source of information for financial institutions in their day-to-day loan approvals.

CCRIS provides information related to outstanding loans, special attention accounts under close watch of financial institutions and approved or pending applications for loans over a twelve-month period. The common misconception is that CCRIS has the authority to blacklist individuals with negative credit rating. The truth is that CCRIS is a reporting mechanism and does not provide opinions on whether to blacklist anyone. It will often show applications for loans over the past twelve months that have been approved or under consideration.

Banks usually reject loans based on information from CCRIS. Issues that banks often consider include the number of credit cards a user has signed up for as well as the repayment on these cards. Obviously, having more cards and the repayment patterns over a twelve-month period for these credit cards as well as borrowing records for the past six-months are also taken into account.

CCRIS also records event like enrolling into BNM’s Counselling and Debt Management Agency (AKPK). These remarks and information will always be in the CCRIS even when the payments have been regularised. Banks will weigh in on these issues when looking into approving a loan.

How to Improve CCRIS Score

The best way to up ones CCRIS score is to regularize one’s payments. CCRIS usually red flag accounts and records that have not made loan and credit card payments consistently over a period of six months or more. Banks will not give loans to these “special attention accounts” and one should approach banks to request to restructure their payments. Extending the payment tenure with lower payments will help regularize one’s payment schedule. Reducing the number of credit cards is another way of scoring brownie points on CCRIS as this would indicate one is pending within his or her means. However, not having a CCRIS record is also an adverse situation with the bank, because the bank may not be able to assess your usual repayment habits.

Hence, it may not be a good thing to someone who is totally having a clean CCRIS without any past repayment records in the CCRIS system. What you can do is to have a basic credit card, not during the time you want to apply for a housing loan, but get your credit card much earlier in advance. You may not use the credit card, but that is still helpful, because in CCRIS system, it is shown that you own a credit facility, ie credit card, with a good repayment record because it shows that you have not defaulted on any payment. Similarly, for those who had accumulated credit card debts, if they have paid the minimum monthly repayment amount, they are still shown as good paymaster in the CCRIS system, because you have fulfilled your repayment obligations to the bank to make the minimum payment on time.

PTPTN blacklist in PTPTN

PTPTN blacklist is also another problem which applicant frequently faced. Although PTPTN is not a financial system, however, it has obtained special approval to list their defaulters in CCRIS system to enforced repayment by these defaulters. In most cases for PTPTN defaults, it may have been many months that you had not make repayment to PTPTN. However, considering that many may not have known about PTPTN, the banks have agreed that, you will need to settle the current outstanding amount with the PTPTN, and obtain a clearance letter from PTPTN before you can entitled to apply for the housing loan.

How we are able to help

Sometimes, it is just not enough to research online and self-monitor your credit repayment. Sometimes, it is wise to ask experienced agent, especially when you really decide to buy a property, on whether you are able to get loan, and really start planning for your credit scoring. Most of the time, applicants would know slightly of their adverse record in CCRIS, but with their own knowledge, maybe the effort to clean up the CCRIS is still insufficient. But these applicants only start asking consultants after spending 6 months cleaning their own CCRIS scoring, but may not have done it correctly. Hence, always consult with the professional and let us help you accordingly.

Some may also feel that they are can try to apply for housing loan from the bank, and if it gets rejected, they will clear the CCRIS and try to apply the loan again. However, what they are not aware of is that, the bank would already have a record of your previous loan application, and the reason for the rejection. You might have cleaned up your CCRIS record subsequently. However, the internal system of the respective bank may already have their previous record, and hence would not approve their housing loan application, eventhough you had clean your CCRIS record. Therefore, it is important to clear your CCRIS default record before you start applying for any loan.