YOUR credit score reflects your financial credibility. It is not easy to establish a good reputation, but it would only take a second to destroy it. In fact, it is more often than not that we unknowingly damage our own credit score!

The following shows how Malaysians unknowingly undermine their credibility:

You frequently change your identity card

Whenever you change your identity card, the number behind shows the number of times you changed your MyKad.

If you change your identity card too many times, it would affect your reputation as the lender might suspect that you are somehow involved in some scam or fraud.

Also, it would make you susceptible as a target of identity fraud.

However, some companies such as RAM Credit Information Sdn Bhd (Ramci) provide identity protection plan for your peace of mind.

Arrears in telephone charges, utilities or bank debts

In our account’s default state, many telecommunications companies, banks and power companies will register the user's credit record to a credit information company such as Ramci, regardless of the amount of the debt.

Common reasons:

• Some bank accounts are dormant and do not have enough money to pay the service tax.
• After the termination of the telecommunications service, you fail to pay the remaining outstanding charges.
• Unpaid fines. A small outstanding charge of RM10 could cause a black mark on your report.
• While the amount is small, this will also affect your reputation. Handle the fines and outstanding charges with caution no matter the amount.

Debt restructuring / loan reorganisation or exemption period

Debt restructuring, refinancing or application of loan deferment will result in your credit record (CCRIS) being affixed with a special label.

Avoid all these unless necessary. The special label will only harm your financial reputation and affect your loan application in future.

A blank cheque

If your cheque bounced, your name will be automatically included in the Dishonoured Cheques information (DCHEQS). The system records invalid cheques. Once your name is included, it will affect your reputation.

You have not updated your credit information for some time

Poor credit score often arises because of ignorance. It could be due to a delay in payment, some legal issues that you are unaware of or because you have not updated your credit information for a long time.

Sometimes, the legal issues or debt obligations have been resolved but the system has not been updated. This is a common problem. Hence, everyone has to know their credit profiles. Manage and update them accordingly.

If, like most Malaysians, you are at a loss on how to manage your personal credit profile, you could visit www.mycreditinfo.com.my to get a free copy of your personal financial credit report.

After you obtain this information, you can manage your credit profile more efficiently and take the necessary steps to salvage your reputation.

This original article was first published in Chinese in Property Trends. Download (bit.ly/StarProperty_Emag) to read more.