Do you know that when we apply for a personal loan, housing loan or credit cards from a bank, our personal details such as name, address, age, marital status, employment details and Identity card number (IC) will be revealed to the bank. That means we cannot cheat the banks because they have all our personal details and our financial status.

In Malaysia, there’s a system called Central Credit Reference Information System (CCRIS) is built to capture all credit data received from the banks in Malaysia. Currently, CCRIS is maintained by Bank Negara Malaysia (BNM), all information about your car loans, housing loans, credit cards loans, personal loans are no longer confidential or secret to the Bank Negara Malaysia. Or should I say that the banks that you dealt with are fully aware of your financial status before you plan to apply any loans with them. Therefore it’s very important for you to know personal credit scores plus all the repayment activities associated with the banks.

improve-credit-score

How To Improve Credit Score ?

Below are the list of ways to improve your credit score. With good credit score report, you will be welcomed by all banks and get the best offers from them.

Fewer Credit Cards and Always Pay In Full

- Most young people have more than one credit card on their hands. Due to over spending and unable to control the expenses, they are not able to settle all the outstanding balances in the end of the month. This will result in more credit cards debt and heavy financial burden. If you wish to secure a better credit score, use fewer credit cards and always pay all outstanding balances in full within the agreed time line.
Get A Job And Own A Property (House)

Bank officers always judge your financial status by investigating your current job whether you have a stable job with steady flow of income or not. By knowing this information, the bank officers are able to calculate your daily expenses and capability to pay back the current loan and future loans. If you own a house, it adds extra points to your individual’s credit score because home implies stability and a better standard of living.

Settle Bills On Time

Please be remembered that banks are very sensitive to your payment history. If you have a bad payment history, it’s hard for you to take on new loans from any banks because CCRIS will show all your payment history to the banks that you approach for credit facilities. Don’t ever have a bad track record because it creates bad image on you.

Loyal To The Bank

If possible, stick to one bank only as a long payment history will enhance your credit score. However, this is on condition that the bank continuously offers you the best deal on all your borrowings. The bank normally treat their loyal customers very well and tend to give more credit facilities than other new bank.

Limit Expenses and Budgeting

Last but not least, you should not over spending hard-earned money on unnecessary items and always do budgeting. Knowing your own income and borrowing capacity will limit the amount of outstanding debts as well as the number of debt accounts that you own.

Good Credit Score

By applying good personal finance attitudes, you will own a good credit score and always have cash surplus for emergency purposes.

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