I believed that most of the people had suffer from submit loan application to financial institute/banks but getting rejected from them.
we are going to talk about one of the major reason that caused your application rejected.
when financial institute processing your application , credit reports is very important to them,financial institute may check applicant credit records thru CCRIS
What is CCRIS?
CCRIS stand for Central Credit Reference Information System ,this system is created by Bank Negara Malaysia to collect information from borrowers which provides by participating financial institure.
From CCRIS report we may obtain the information about:1.Outstanding loan and repayment status
2.Special attention accounts
3.apllication of credit (result of previous loan apllication)
CCRISS will kept the records for last 12 months only
There are several common reasons that bank will take as "bad applicant"
-Late payment records
This is a common problems that happen to most applicant,i suggest that borrower should clear their installment payment before due date to avoid this problem.
-Account is under legal status or encounter a law suits.
-Account have no credit records at all
This is a part that confused some loan applicant,from financial institute point of view,an accounts that doesn't had credit records at all, is an unknown risk for them.That means that if they released the loan the this account,financial had no idea that this applicant will make the repayment on time or in worst case this applicant might be pay back at all.
This problem normally happens on fresh graduates, if you are a fresh graduates who having this problem, there are some loan package specially designed for you with better benefits.