PETALING JAYA: Over 95% of Malaysians pay their loans on time amid high household debts that have raised concerns, according to Credit Bureau Malaysia (CBM). Data shows that from the one million samples taken from the Credit Central Reference Information System (CCRIS), close to 30% have the highest grade of “AA”, said CBM CEO KC Wong. “In fact, more than 97% of the scores generated are of good credit standing,” he told reporters at a media workshop on credit positive here yesterday. Wong was reluctant to say that the results show undue concern on the financial system, but stressed that the default rate is only 2% to 3%. He said CBM is targeting to incorporate data from PBM, which will have the current market prices of properties in portfolio, to provide a more thorough review of credit profiles. CBM, a unit of Credit Guarantee Corp (CGC), has access to CCRIS, the Companies Commission of Malaysia (SSM) and soon PBM. Each individual will have their own credit scoring, called MySCoRE, which is derived from the available data. There are 10 credit grades for the credit scoring from AA to JJ with a maximum score of 900. Each category suggests different range of the probability of default. Generally it is easier for those who score EE and above to get financing from the banks. The credit scoring is mainly premised on the repayment record, loan-to-salary ratio and credit card usage. Wong said the public are advised to pay their loans on time as one will be considered a bad paymaster if there are more than three late payments. He highlighted that the scenario will become worse if one does not respond to any legal documents and makes himself/herself “uncontactable”. For credit cards, it is advised that the consumption amount not exceed 30% of the total credit limit. As those who have taken PTPTN loans are now included in the CCRIS database, Wong said the PTPTN payment cannot be ignored and borrowers must stay “contactable”. “The remedy is simple, we just need you to go to the PTPTN office, either pay the arrears or work out the repayment schedule,” he said. By highlighting good credit conduct and enabling swift efficient processing by financial institutions CBM can help consumers have wider choices and at more competitive rates.