It’s entirely possible to maintain a healthy credit score while managing multiple loans. An important thing to note is that your payment history makes up 45% of your CTOS Score, so a late loan payment can cause your score to dip. To maintain a healthy CTOS Score, ensure you don’t neglect your monthly credit obligations – from your vehicle payments to PTPTN study loan, housing loan or credit card repayments, these payments should be made on time.
Here are 3 tips to manage loans better to have a healthy CTOS Score:
- Get current on your monthly payments
If you have missed any payments in the past, don’t worry – make the payments for the month(s) you’ve missed until you’re current. Then, cultivate the discipline to stay current. Make an effort not to skip or miss any more payments at least for the next 6 months, as it does take time for your credit score to improve, besides requiring consistent and disciplined payment behaviour.
- Set up an auto debit payment facility
Having an auto debit system in place means that you won’t have to worry about forgetting or missing your monthly repayments. An auto debit payment facility will ensure that the required payment amount (such as your monthly car loan repayment) will be deducted automatically from your chosen bank savings or current account. Check with your bank for a list of participating payee corporations to know which loan payments can be managed via auto debit.
- Check your credit report regularly
Review all information in your credit report regularly, such as your full MyCTOS Score report. Section C1 of your updated MyCTOS Score report will show your full CCRIS details, so you’ll be able to keep track of what payments were missed or paid on time.
Pay attention to any listed negative information and check if the said information is accurate, as any negative information listed in your report can adversely affect your credit score. If you spot any inaccuracies, contact your credit reporting agency as soon as possible to get it rectified.
How long will it take for my score to improve?
Over time, a late payment will have less of an impact on your credit score. Eventually, your score will improve, as long as you are paying all of your loans on time and keeping a low credit utilisation ratio, which is the amount of debt you have compared to the amount of credit you have available. An optimal credit utilisation ratio is below 30%. To raise your score as quickly as possible, try to keep your credit utilisation ratio below 10%.
Use MyCTOS Score report to keep track of your manage your loans better, as well as stay on top of your credit obligations to ensure you maintain a healthy CTOS Score.
