CTOS Shows a Trade Reference (Section D).Do I Need to Clear It Before Applying?

Many people only find out about a trade reference when a bank officer mentions it. It's often an old phone bill, a subscription or a small loan they forgot about.

What a trade reference is

CCRIS shows loans reported by banks. CTOS also includes information from other companies, such as telcos, utilities, service providers and some lenders, that report customers with unpaid amounts. In a CTOS report, these usually appear in the trade referee part of the report, often called Section D by bank officers.

Why banks care

• It shows a debt you didn't pay, even if it's small.
• Banks see it as a sign of how you handle commitments, not just the amount.
• Some banks won't process an application while a trade reference is outstanding, and a few remain cautious even after it's settled.

Steps to clear it

1. 1.Get your CTOS report and note the company, the amount and the date reported.
2. 2.Contact the company that listed you. Confirm the amount and ask how to pay.
3. 3.Pay and get a settlement letter or official receipt that shows the account is fully settled.
4. 4.Ask the company to update or withdraw the listing with CTOS. You can also contact CTOS with your settlement letter.
5. 5.Check your CTOS again after a few weeks to make sure it's updated.

If you think it's wrong

If the amount isn't yours or you already paid, you can dispute the record. Contact the company first with your proof, and raise it with CTOS too. Keep copies of everything.

When to apply

• Small amount, good profile otherwise: it's usually worth clearing it first. More banks will consider you.
• Large amount or several listings: speak to the companies about settlement or a payment plan, and expect fewer banks to be open to you until it's resolved.
• Already settled but still listed: get it updated before applying; a settled record still looks better than an outstanding one.

For the difference between the two reports, see CCRIS vs CTOS. If you've been told you're "blacklisted", read what that really means.

STS Wealth Care is a loan advisory consultant, not a bank or lender. We read your CTOS with you, tell you which listings banks are likely to focus on, and which to clear first. We don't charge an upfront fee, and approval is always the bank's decision.

This article is general information, not financial or legal advice. STS Wealth Care is a loan advisory consultant, not a bank, lender or licensed financial advisor. Approval, rates and amounts are always decided by the bank or financial institution.