What actually is a good credit score?


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:

score-weightage-V2 score bluePayment History (45%)
Whether you pay your loans on time or have missed payments in the past
score redAmounts Owed (20%)
The number of credit facilities and the amount owed to the banks
score yellowCredit History Length (7%)
How long have you held a credit facility (credit card, or a loan)
score greenCredit Mix (14%)
Types of loan and credit cards you hold – secured (home, car loans) vs unsecured credit (credit cards, personal loans)
score purpleNew 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].