Personal credit ratings in Malaysia

Attended a seminar on Credit Risk Management for SMEs yesterday. Chiefly trying to find out more about business loan application in Malaysia, and the criteria they look at when they assess applications. Turned out that there were not much more information presented that I don’t already know. On the other hand, on the personal side, I found out that:
i) CTOS is one of three credit ratings agencies in Malaysia, apparently the largest;
ii) I can access my own credit report free of charge by registering with CTOS (unlike in the UK you will need to pay £5 to say Equifax to get a copy of it).

CTOS report

Above is a copy of my credit report from CTOS. I don’t know how others’ look like, but mine looks pretty blank, and with a damning entry for being a director of our new company. As you can see, our company is making quite a big loss in 2013, the year we started the company. The figure is one we submitted to SSM from our audited account for the year. It is most likely not very surprising to see losses in new companies in their first year of business. But from a personal credit history’s point of view, it is just bad. You see I have only been back in Malaysia for just over 2 years. I have no credit history. And setting up a new company seems to have plunged me into a deeper hole, as it now appears that I am a director of a company that loses lots of money. I think I now know why I failed in my recent application for a credit card. Can’t blame the financial institution for rejecting me when I have such a huge red flag waving at them can I? Considering that decision making is computerised on whether to approve a credit card application nowadays. But this just means that it is extra hard for entrepreneurs to borrow money, even if they just want to borrow money in their personal capacity for non-business related expenditure?

Great, looks like it is probably prudent for me to wait a couple of months, to allow my credit report to be updated with our latest audited account submitted to SSM which shows a non-negative number, before I apply for a credit card again.

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