I think Central Credit Reference Information System (CCRIS) was implemented in the end of 90’s where all the borrowing data of customers were send to bank Negara for record keeping. Since then, banks were obliged to send the report within certain time line to Bank Negara.
I still remember when I was in one of the local bank and in the disbursement unit of housing loan. Every month, we have to rush our report to the financial department. The most important we have to make sure that the manual report and the system report are tally. If it doesn’t tally for even 1 cent, we have to dig up all the transaction and check out where the mistakes are.
Sometimes, when we were so fed up of it, we jokingly said, “Oh god, why not we just pay them 1 cent and forget about digging all the stuff out.” But, you know the financial world doesn’t work like that. It’s a fact and figures.
Many people came to us asking about how CCRIS works. Well I can say that CCRIS is update on monthly basis. CCRIS report shows all customers borrowing transaction with all the banks in Malaysia.
Will CCRIS reveal for my borrowing in Singapore?
Well, the answer is “No”.
They are only able to track within Malaysia. However, for bank’s that have branches in Singapore; they may have able to check with their branches there. Basically, in Singapore you have something like CCRIS too. This practise only applicable for certain banks.
From CCRIS report, the banks will be able to track down your original loan amount, outstanding loan amount, your payment conduct for last 1 year, any special attention account remarks, any reschedule loans or whether you are under AKPK (Agensi Kaunseling Pengurusan Kredit). That is a lot of information for the bank to check your capabilities.
By looking at the CCRIS, they will be able to give preliminary view on your financial stand.
Some customers may said, he has a car loan which only under his name but not paying by him. He only lends his name. That’s old stuff. Not working anymore.
In this case, the commitment will be still consider under your name. Because from the bank point of view, in the event of default happen the bank will be chasing you and not your paymaster. So, the obligation of payment still on your shoulder.
Sad things always happen, when this kindness was repaid with bitterness. Well I believe happen to many people out there where the loan was unpaid. The legal messy thing was on your door step. You will receive legal letter from the banks, tons of it. Or you will receive a special visit… and so on. If you are not solving this issue, it’s going to haunt you back when you need to apply for a bank loan in future. The way out ?
Talk to your banks and arrange for reschedule, it can be a little step or payment. But, one day It’s will finish. And hoping you will learn from a great mistakes. Never loan your name for other people borrowing unless you are 200% sure that this person will repay the loan. But still watch out because that commitment will be calculated by the bank under your name. If you are earning a lot, then shouldn’t be any issue.
What happen if you were in Special attention account column in CCRIS?
Well simple. You have to fully settle the loan and inform the defaulted bank that you want the remarks on Special Attention Account remove.
Normally, the bank will remove it. But, still it’s happen to many that it doesn’t. So, it’s your responsibility to keep track until it’s remove from your CCRIS. If it doesn’t remove in your CCRIS, and you are applying for a loan, the chances are high for other bank to decline your case. This is crucial and you must do it.
I have a client who had a special attention account due to he doesn’t paid for his Credit card Stamp duty. However, he no longer used the card, well prior to the cancellation there is stamp duty charge which he is not aware until he is applying for a loan.
Ironically, he called up the bank and insist them to remove it’s quickly. But, it’s really mess up the loan process and it’s taking longer than it should be. At last the things remove and he manage to get an approval. Well, not every time things will have a happy ending and i believe you do not want to be in that situation.
It’s hard especially when you are buying a house from owner or agent, they keep pushing for signing SPA and your loan yet to approve. You really in chaos and pressure are everywhere.
I can keep talking about CCRIS for as long as I want too. As there are hundred of CCRIS I saw before and some are very unique case. And of course most are good ones.
Well my advice, if you are planning to buy a house in any short period. Please make sure your payments are in good shape. Unsure about your payment conduct, please go to Bank Negara and print your CCRIS report, this is a free service. Check for any unhealthy conduct or information on the CCRIS. Sometimes, there is mistakes make on the CCRIS. So, just double triple check it. After print the CCRIS report, if you need help, you can always consult the bank Negara staff. They are very helpful.
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