16/10/2025
The CTOS score is a credit rating developed by CTOS Data Systems Sdn Bhd, one of Malaysia's leading credit reporting agencies. It is a three-digit number ranging from 300 to 850 that helps lenders assess your creditworthiness. A higher score indicates lower risk.
The score is calculated based on the information in your CTOS Comprehensive Report. While CTOS does not publicly disclose the exact, weighted formula, it is widely understood to be based on five key factors, similar to other global credit scoring models.
Here is a breakdown of what makes up your CTOS score:
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The 5 Key Factors of Your CTOS Score
1. Payment History (Highly Influential - ~40-45%)
This is the most significant factor. It reflects your track record of repaying your debts.
· What it includes: Your history of payments on credit cards, personal loans, car loans, housing loans, and other credit facilities.
· What hurts your score: Late payments, missed payments, defaults, and accounts being sent for collection or bankruptcy. The more recent, frequent, and severe the delinquency, the more it will negatively impact your score.
· Key takeaway: Always pay your bills on time, every time.
2. Credit Utilisation (Highly Influential - ~20-25%)
This measures how much of your available credit you are currently using. It primarily applies to revolving credit like credit cards and lines of credit.
· How it's calculated: (Total Credit Card Balances / Total Credit Card Limits) x 100.
· What helps your score: A low credit utilisation ratio. A common rule of thumb is to keep it below 30-40% of your total limit. For example, if you have a total credit limit of RM10,000, try to keep your total outstanding balance below RM3,000-RM4,000.
· What hurts your score: Maxing out your credit cards or consistently having a very high utilisation ratio suggests you are over-reliant on credit.
3. Credit History Length (Moderately Influential - ~10-15%)
This factor considers the age of your credit accounts.
· What it includes: The average age of all your accounts and the age of your oldest account.
· What helps your score: A long, well-established credit history. It gives lenders more data to assess your financial behavior reliably.
· What to note: Closing your oldest credit card can shorten your average credit history and may temporarily lower your score.
4. Credit Mix (Moderately Influential - ~10-15%)
This refers to the variety of credit accounts you have.
· What it includes: A healthy mix of different types of credit, such as revolving credit (credit cards) and installment loans (car loan, personal loan, mortgage).
· What helps your score: Responsibly managing different types of credit shows lenders that you can handle various financial commitments.
· Important: Do not take out loans you don't need just to "improve your mix." This factor has a smaller impact.
5. New Credit & Recent Inquiries (Less Influential - ~5-10%)
This factor looks at how often you apply for and open new credit accounts.
· What it includes: When a lender checks your credit report after you apply for credit, it results in a "hard inquiry" on your file.
· What hurts your score: Multiple hard inquiries within a short period (e.g., 6-12 months) can be a red flag, as it may indicate you are in financial distress or taking on too much new debt too quickly.
· What to note: Checking your own credit report (e.g., via CTOS Self Check) is a "soft inquiry" and does NOT affect your score.
