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Credit Score, The Biggest Flex of Your Adulthood

HeyAlfred partnered up with iMoney; a financial comparison aggregator, where you can compare & apply for credit cards, home loan, personal loan, broadband, insurance and more! iMoney empowers you to make intelligent decisions on money matters, making things simple enough so you have the power to always make the right decision with your wallet. Unaware that there is a national credit rating system? Here’s an overview of the definition of a credit score and how you can take control of it.

These are probably two things your mum never told you. 

  1. What happened to all your angpau money she ‘kept in the bank’ for you. 🧧✉️
  2. That a good credit score is way more important than your final exam score. 

Credit Score, Apa Tu?

Hi, ever sip your teh tarik and wonder which banks to consider when you apply for loans? What makes you qua-li-fied? 🍺🤔 

This is where two magic words come in (it’s not pretty please), its : Credit Score.

A credit score basically tells banks if you’re really going to  📢 repay that loan.📢 It evaluates your financial history and helps banks decide if they want to have any kind of business with you. *Uuuuuwuu~

Kind of how you need a resume when applying for a job, you also need a full financial health check-up before applying for loans. It’s a single score that represents how good your credit health is and the most reliable way to tell whether your applications for loans or cards will be approved.

Sounds simple right? Let’s break it down a liiiiiiitle bit more 🌝

Where Do Credit Scores Come From?

Credit scoring models use information in your credit reports to create a credit score, and that information is stored and tracked by a database owned by Bank Negara Malaysia known as Central Credit Reference Information System (CCRIS).

Your credit reports contain information about loans and credit cards you’ve had in the past, any public records like bankruptcy, and loan or credit card payments you’re currently making. So if you think there’s no one watching while you miss a couple of monthly PTPTN payments and go for that weekend getaway – brader, think again! 

A second lifeline you say?

Okay la, think of your credit scores like a report card that you review at the end of a school term, tapi instead of grades, your activity ends up within a scoring range. But unlike academic grades (thankfully), credit scores aren’t stored as part of your credit history. Rather, your score is generated each time a lender requests it, according to the credit scoring model of their choice.

BUT, credit scores are not the only things lenders will look at when deciding to extend you credit or a loan. Your credit report also contains details like the total amount of debt you have, the types of credit in your report or the length of time you have had credit accounts. Other than your credit report and credit scores, lenders may also consider your total expenses VS monthly income (known as your debt-to-income ratio), depending on the type of loan you’re applying for.

Every time you set a major financial goal, like becoming a homeowner or getting a new car, your credit is likely to be a part of that financing picture. Penting tau!

Um…Macam mana mau kira? 

Your CreditScore is a weighted calculation, with these 5 factors contributing to the final overall number. 🧮 ⚖️

(SOURCE: https://www.imoney.my/articles/everything-need-know-credit-score)

Where can I check my Credit Score?

Central Credit Reference Information System (CCRIS/eCCRIS) 

CCRIS is created and owned by Bank Negara Malaysia (BNM). The CCRIS synthesises credit information about a borrower or potential borrowers into standardised credit reports.

CTOS

CTOS is a Credit Reporting Agency that collates and provides individuals with their credit reports that detail their credit history for the past 24 months, legal proceedings, company ownership and directorship, and even testimonies from companies that they have business dealings with.

RAM Credit Information (RAMCI)

RAM Credit Information Sdn Bhd (RAMCI) is a licensed credit rating agency under the purview of the Ministry of Finance Malaysia. RAMCI has its own credit score called the i-Score.

So…can I qualify for my next loan onnot?

Improve your credit score. Credit score changes and rise or fall based on new information. Here are some ways you can improve your credit score to qualify for that loan kereta baru :

  • 💸 Pay your bills on time: Six months of on-time payments is required to see a noticeable difference in your score. 
  • 📈 Up your credit line: If you have credit card accounts, inquire about a credit increase. If your account is in good standing, you should be granted an increase in your credit limit. Try not to spend this amount so that you maintain a lower credit utilization rate.
  • 💳 Don’t close a credit card account: If you are not using a certain credit card, it’s better to stop using it instead of closing the account. Depending on the age and credit limit of a card, it can hurt your credit score if you close the account. 

Knowing your credit score is a good start when you’re planning to make that big adult move (loans shmoans), as it will help you improve the approval rate by the banks and your future mother-in-law. Eh, wha– 👀 That credit score can cost or save you a lot of money in your lifetime, so an ‘amazeee’ score can land you lower interest rates, meaning you will pay less for any line of credit you take out. 

But it’s up to you to make sure your credit remains strong so you can have access to more opportunities to borrow if you need to! — do your best to pay what you owe on time and build your credit by utilising your credit card and loans wisely. 💪💥

HeyAlfred and iMoney are now partnered up to help you get your finances in track! You’re eager to know your credit score and assess your financial health now kan. Do it now on iMoney CreditScore, it takes less than 10 minutes and it’s absolutely free? (Um yeah, we know you love free stuff too. It’s FREE!)

To find out more about your credit score, Click here or ask Alfie, our in-app chatbot! 🤗👋 Buckle up, and let’s get started!