Kredit mak kau hijau? Why knowing your CTOS credit score is important
You usually come across the word “credit score” in American media. Usually, the character tries to buy a house or car, only to be informed their credit score is too low. Thing is, credit scores exist in Malaysia too – and you might have heard of CTOS.
CTOS is Malaysia’s largest private credit reporting agency, registered under the Credit Reporting Agencies Act 2010. If you’ve done a CTOS check before, the score is summarized in a chart that ranges from red (poor) to green (excellent).
Well, their latest campaign is about giving Malaysians the knowledge and tools to take charge of their financial future… which all starts with checking if their credit is Green.
And yes, the campaign is called Kredit Kau Hijau.
Many of us make costly financial decisions while adulting
When you start earning money, you might start getting tempted to upgrade your lifestyle. It might be a new phone, a new car, or even buying a nice studio apartment. But because you might not be able to pay for these things upfront, you’ll have to take a loan and pay installments. In other words, debt.
The National Credit Counseling and Management Agency (AKPK) reports that 53,000 Malaysians under 30 are stuck with nearly RM1.9 billion of debt. This debt comes mostly from raising bigger families, lifestyle, housing loans, and buying vehicles that may be out of their means.
Kredit Kau Hijau aims to play a role in guiding Malaysians -especially young adults – to stay on top of their credit game.
At CTOS, we want to play our part in guiding the younger generation to stay informed and take charge of their finances. When we introduced the Kredit Kau Hijau campaign, we aimed to create a fun and relatable way to guide Malaysians on managing their credit and boosting their financial know-how.
Ultimately, we hope that understanding their credit scores will give them a better perspective on their spending habits and empower them to make smart financial choices.”
– Erick Hamburger, Group CEO of CTOS Digital Berhad
A strong credit score can lead to easier loan approvals and lower interest rates
While young Malaysians are the focus, everyone deserves the knowledge to make informed financial decisions. Regularly checking your credit score and understanding where you stand financially can open doors to chase your dreams of getting that new bike or apartment tanpa was-was. It helps you plan ahead with your spendings and savings for the long term, and strengthen your credit score.
It’s not just awareness. A strong credit score can lead to lower interest rates and up to 5X higher loan approvals as seen in the 2024 CTOS Score Band vs Loan Approval Rates Study. That means no more stressing about getting turned down. Basically, being aware of your credit score translates to more freedom to
So if you’re from this writer’s generation, a credit score is like a health screening for your finances. If you’re younger, then it’s like a financial selfie without filters.
Tips from CTOS to strengthen your credit score
If your credit isn’t looking great, here are some basic tips to get started:
- Start by budgeting like a boss – Break down your expenses into categories like
food, rent, entertainment, and savings, and set spending limits to avoid going broke
before payday. - Make saving effortless – Set up automatic transfers to your savings account.
- Prioritize! – Prioritize your essential expenses and cut back on non-essentials to reduce stress (on you and your wallet).
- Stay on top of your credit score by getting your MyCTOS Score report at least once
a year.
If you want to learn more about finance, the Kredit Kau Hijau campaign is hosting an Ask Me Anything on CTOS’ official Instagram page @ctoscredit. For the next week, you can ask Abang CTOS anything
and everything finance-related.
And, of course, how to keep kredit kau hijau.
