CTOS Score Q & A
How does CTOS Score improve credit worthiness evaluation?
With the introduction of CTOS Score, banks will have a robust and more detailed evaluation of a consumer’s credit risk as it relies on CTOS proprietary information on the borrowers.
Good creditworthiness stemmed, among other things, from prompt payment of bills, maintaining a low balance on credit cards and other revolving credit and obtaining new credit only when needed. As such, CTOS Score groups their information under the following five categories – payment history, amount owed, length of credit history, credit mix and new credit. The score is presented in the form of a three-digit number ranging from 300 to 850, with a higher score reflecting a lower risk.
Where Does the Information Comes From?
Information about the borrower comes from the Central Credit Reference Information System (CCRIS) as well as from non-banking sources such as the Companies Commission of Malaysia (SSM) and telecommunication companies. The data serves to give more accurate assessments of a person’s credit history.
How Does First Time Borrowers Benefit?
CTOS Score provides additional information to the lender especially when the consumer in question does not have a credit history. This means that CTOS Score benefits people who had no previous banking history as they now have easier access to credit facilities at banks.
When is the Expected Adoption Date?
CTOS Score was developed in partnership with FICO, a global leader in analytics and developer of the de facto standard for credit scores in the US. Several leading banks in Malaysia have successfully validated the CTOS Score and commercial adoption is targeted for the second quarter of 2016.
CTOS Company Background
Founded in 1990, CTOS Data Systems Sdn Bhd operates as a credit reporting agency which collects information from various sources to aid decision making processes. The company provides information to subscribers who may require report for various purposes, including opening of account, extension of credit or loans, hire- purchase/leasing/rental or purchase of properties or equipment, factoring, insurance, provision of services, opening an account, job employment, legal documentation, etc.
April 6, 2016 / /
Categories: loan news