Being blacklisted by Bank Negara can cause much worry and stress. It can affect your credit rating and can cause a problem when you apply for various financial products such as personal loans or credit cards. But it is not the end of your financial life as you can clear your name from the blacklist.
What is CCRIS?
Bank Negara has financial information of all those who use various banking and financial products. It has a system in place called Central Credit Reference Information (CCRIS) which provides credit reports on individuals. This is used to supervise and regulate financial institutions.
Information is collected from various sources such as banks, insurance providers and private companies that provide utility services. All your financial information and data is then compiled into a report which all financial institutions can access. A credit report will contain information about your outstanding debt, active accounts, pending and approved credit card applications for the last 12 months.
What does it mean being blacklisted by Bank Negara?
CCRIS is a reporting system that helps financial institutions to assess risk while providing any financial products and services. If you do not have a habit of paying your credit card bills or loans on time, your name would be red flagged as a risky and unreliable customer. When you apply for any loan or credit card in the future, banks or financial institutions may not accept and approve your application.
So having a good CCRIS report is vital. If your credit report is bad, it can be said that you have been blacklisted by Bank Negara.
How to clear your Bank Negara blacklist status?
Even if you have an unfavourable CCRIS report, it is possible for you to change it to better. There are a few steps you need to take to ensure you have a good credit report with Bank Negara.
1. Identify your debt
The basic and important step to take is to identify your outstanding debt. It could be any outstanding loans or outstanding payments on your credit card. Write down your total outstanding due as well as your monthly expenses. Create a budget that will help you know what you need to pay each month.
2. Try to make a partial or full payment immediately
Your credit rating dips when you fail to make payments for more than six months. Check whether it is possible for you to pay the outstanding amount partially or in full immediately. Search out for various income sources or other savings that can be used to pay off your debt.
3. Check with your bank
If you are not able to pay any outstanding dues, contact your bank or financial institution as soon as possible. Talk to your bank and see if you can negotiate an alternative repayment schedule. Even if your bank may not accept this negotiation, they can provide you valuable advice and tips on what you can do to repay your outstanding due.
4. Make regular payments
You need to start making regular payments towards your loans or credit cards. A reasonable budget is required for you to do it. Note down your monthly income and expenses. Identify areas where you can cut down on unnecessary expenses. Keep aside funds to pay your outstanding debt, and do not use that money for anything else.
5. Set up standing instructions
If you are not able to pay your dues on time, set up standing instructions with your bank. This way, even if you forget, your payment would go through on time. Since the bank would deduct that amount directly from your account, ensure you have enough funds in the account at all times.
6. Contact AKPK
AKPK is a debt management agency established by Bank Negara. AKPK provides financial education, debt management programmes and financial counselling sessions for Malaysians. All these services are provided for free. You can receive free counselling on how to manage your debt. AKPK will also help you to identify available options to improve your financial standing.
You can get advice on various matters such as budgets, money management and credit related issues. All counselling sessions are on a one-to-one basis.
Improve your credit rating
You can remove your name from being blacklisted by Bank Negara only by paying off your outstanding debt. Regulate your payments. Always pay on or before the due date. Since the CCRIS report is for the last 12 months, you need to ensure that you make all payments on time for 12 months.
Once you have established a regular payment routine, then your credit rating will improve where you can apply for further financial products and services. Continue to maintain a good credit rating so that you do not experience any difficulties in acquiring additional financing in the future.