Does Applying for Too Many Loans Hurt My CCRIS?

Many people apply to several banks in the same week, hoping one will say yes. It feels logical, but it can make each application weaker.

How applications show up

• CCRIS has a section called "Application for credit" that shows applications you have made recently. Bank Negara Malaysia states that rejected applications are not shown in CCRIS reports, but pending and approved ones are.
• CTOS and other credit reporting agencies may also show how often your record has been checked by lenders.
• Checking your own report through eCCRIS is not an application and doesn't count against you.

Why banks care

A bank reading your report sees the new applications and asks: why does this person need credit from many places at once? Possible concerns are that:

• you are short of money and may struggle with repayments, or
• you are about to take on several new debts, so your real DSR will be higher than what they calculate.

Each bank has its own view. Some barely notice two applications; others become cautious quickly.

Is there a safe number?

There is no official limit. In practice:

• one or two applications for the same purpose are normal;
• many applications within a few weeks, especially after a rejection, is what tends to worry banks;
• a car loan, a personal loan and a new credit card all at once can look like a lot, even if each makes sense on its own.

How to apply without hurting yourself

1. 1.Check your own CCRIS and CTOS first. Fix late payments or errors before applying. Here's how to check your CCRIS for free.
2. 2.Work out your DSR. If the new instalment pushes your DSR too high, most banks will say no anyway. Read What is DSR?.
3. 3.Pick banks that fit your profile. Minimum income, employer type and maximum DSR differ between banks.
4. 4.Apply to one or two at a time, and wait for their answer before trying others.
5. 5.If you're rejected, find the reason before applying again. See why loans get rejected.

STS Wealth Care is a loan advisory consultant, not a bank or lender. We look at your report and income first and suggest which banks may suit you, so you don't need to apply everywhere. 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.