What actually is a good credit score?
The general guideline is that a ‘good’ CTOS Score will fall in the range of 697 to 850. This, however, is not a hard and fast rule and does not necessarily mean a lower score is a ‘bad’ score. When banks and lenders evaluate your application for loans or new credit, they may take other factors into consideration besides your credit score.
However, having a credit score of 697 and above can be extremely beneficial for you, as most banks and credit providers would view you as a prime customer. A good credit score can increase your chances of getting a loan, get you better interest rates and speedier loan approval, among other things.
What does your score mean?
|Score||What It Means to Lenders|
|Excellent! You’re viewed very favourably by lenders.|
|Very Good! You’re viewed as a prime customer.|
|Good! You’re above average and viable for new credit.|
|Fair. You’re below average and less viable for credit.|
|Low. You may face diﬃculties when applying for credit.|
|Poor. Your credit applications will likely be aﬀected.|
|Your score couldn’t be generated due to insuﬃcient information.|
How is the CTOS Score calculated?
The CTOS Score is calculated based on credit information from both CCRIS and CTOS’s database. 5 factors make up the CTOS Score:
|Payment History (45%)
Whether you pay your loans on time or have missed payments in the past
|Amounts Owed (20%)
The number of credit facilities and the amount owed to the banks
|Credit History Length (7%)
How long have you held a credit facility (credit card, or a loan)
|Credit Mix (14%)
Types of loan and credit cards you hold – secured (home, car loans) vs unsecured credit (credit cards, personal loans)
|New Credit (14%)
Have you been approved for new credit facilities recently
Sources: Banking Payment History [derived from CCRIS, Bank Negara Malaysia], CTOS Database [Legal records & Trade References].