Guide to Personal Credit Rating : A Guide to Get a Better Personal Loan

In Malaysia’s financial sector, credit rating is an assessment of your personal credit risk, and it serves as the basis for you to obtain a personal loan. A good credit record can bring you better borrowing conditions, improving your quality of life.

Here, we would like to give you some crucial suggestions that will help improve your credit rating.

Understanding the importance of personal credit rating

First, let’s take a closer look at the importance of credit rating. In Malaysia, credit agencies such as CTOS calculate it based on your personal credit history, repayment record, the number of credit cards you own, and other factors. This data will affect your chances of applying for a future loan, as well as the interest rates and terms you are entitled to.

Check your credit report regularly

The first thing you can do is check your credit report regularly. For example, you can obtain the CTOS report through Fingrow Marketing to ensure that your credit rating is clear and correct. If the rating does not align with your actual record, you must promptly contact the credit agency and submit a correction request.

(Fingrow Marketing provides CTOS credit reporting services)

Paying monthly debts promptly does help with your future loans

It is common knowledge that late bill payment is one of the main reasons that lowers your credit rating. Therefore, you must pay all your outstanding bills on time, including credit cards, home loans, car loans, etc.

Never assume that it is fine to be a few days late with your payments, as it could have a negative impact on your credit. It is highly recommended that payments be made on time each month.

Reducing credit card debt has a significant effect on your credit rating

Credit card debt significantly affects your credit rating. Therefore, it would be best to avoid maxing out your credit limit and, if possible, pay more than the minimum payment each month

For those managing multiple credit cards, it is recommended to prioritize paying off high-interest-rate cards first. This strategy helps maintain a good record and reduces personal debt burden.

Please swipe wisely and appropriately to keep your account active

Some people hold several credit cards, some of which may be inactive for a long time. This situation may turn your underutilizes credit cards into an invalid account, lowering your credit score.

In other words, it is recommended that you use your credit cards regularly, even for small purchases, as this will help keep your account active.

Diversify your credit types and show financial responsibility

In today’s society, many people have different types of credit records simultaneously, including credit cards, mortgages, car loans, etc., and they keep reasonable monthly loan repayments so that each loan holds a good record. It shows that you are financially responsible, which is a great help in obtaining a personal loan in the future.

Conclusion

Strengthen Your Financial Foundation by Improving Your Credit Rating

Improving your credit score is a long-term process that requires patience and persistence but can significantly impact your future. It can provide better loan conditions and affect you when you rent a house, find a job, etc.

So， embark on the journey to improving your credit rating. It is worth your long-term efforts. It will lay a more solid financial foundation for your future. We firmly believe that your long-term endeavour will be rewarded with more satisfying future loans and a better quality of life!