No one here is saying that having a good credit rating will instantly get you amazing and godly loans. You seem to be under the impression that what we think credit rating is everything. That is not the case at all. What we're simply trying to say that having a good credit rating is a bonus on top of your annual income and savings. It is not the first thing a bank officer will look for. We are not saying that the bank will reject your loan due to bad credit rating even if you have enough money in savings and good income.

Do you have something personal against credit cards?

hi all sifus, if i were to apply for personal loan , say 5k on 2 years tenure, which bank has got the best interest to offer other than rhb?
http://www.rhb.com.my/easy/easy_pinjaman_ekspres.html

I love credit cards...

It makes my wallet bulky

Cash will not be replaceable in transaction...
but future will be seeing more cashless transaction soon.
now hong leong got PEx.. use telephone number.
maybank got cashless payment
and some retailing line is using visa pay wave...

anyhow.. i will use cards if got the opportunity. Get points get rebates.. why not ?

Yeap.. Cashless transaction is so much better, faster, cleaner and easier.
Imagine the cashier counter give you a change with full of 5 cents, 10 cents, 20 cents and 50 cents..

1 month back, the cashier at Texas Chicken gave me a change of around 85 cents or 90 cents - all with 5 cents...
   

My friend currently have 30k credit cards debt but he plan to pay the debts using personal,loan so that he going to focus on one bank for repayment only. But sometime,he miss the payment 1 to 2 months.not regular but some times only..his salary around 3.7k to 4k and he wants to loan 30k,is it possible for him to get the loan?

Credit card interest rate 18% , P.loan 9% ++ . Why not ? 

Hello there,

I am just graduated and start my career not long ago, after deducting EPF and Sosco, I still have average of 2.5k income.

Age 25

Currently fix expenses are toll,petrol and food, costing around RM 5~600.

I having PTPTN loan, 28k, considering start paying next year consistently.

For what I planning currently,

1st setting up 6 month cash flow.
2nd Getting monthly RM200 medical insurance.
3rd Saving on FD and also PRS (Don't know whether this is a good choice or not.)

I don't know how is work but currently I am trying to save 1.5k per month and I had make it consequently for 2 month.

Hope to get sifu advice on better financial planning.

Why avoid medical insurance? May I know what is your concern and opinion?

For my understanding, if anything happen to me, at least my medical expense can be covered by insurance, correct me if i am wrong.

Well, thanks for the sharing though.

Just now a days medical fee are hiking bloody pricing, if any thing happen, sure can't cover the medical fee.
So that's is why i concern to have at least one medical insurance to be safe.

Well, there's lot of homework need to do since now i am still a blank paper 

Use government hospitals. Don't spend rich man money when u are not a rich man.

2. insurance is necessary, i would say... but you don't need to pay RM200 monthly for a good medical insurance. at your age, <800 (a year) is more than sufficient to get a decent one. also if your company covers a decent medical benefit, i would say this can be put on hold a bit, or get a medical insurance with high deductible, then you pay little for potentially high coverage. if your company doesn't cover, then, might need to think about it asap. like i said, insurance doesn't have to cost much, just need to find the right one.

3. PRS is basically investment in unit trust. the difference between PRS and normal unit trust is tax relief (up to RM3k)... and PRS doesn't allow withdrawal before age 55 (similar restriction to EPF). since you are not paying a lot of tax, the tax savings you get is not worth locking up your money for so long. BUT... there's the PRS youth incentive which is why i'm putting just enough money (Rm1k) just to get that youth incentive (RM500).

so, unit trust can be another way of investing, and you can DIY, and please visit the Fundsupermart thread to read up on what the regulars have to say and DO YOUR HOMEWORK. 

PS: i'm your age, not sifu either. also... the other guy has an absolute hatred on insurance, very extremist opinion.

As you get older your POV changes. Products that you had decades ago are not the same as the ones you get today, and the needs have changed too.

When it comes to making any decision, and not just limited to financial decision, it is important that we make them based on the time that we live in and our own situations.

For example, for an older person who is nearing his/her retirement age, and have not taken any medical insurance before, it may be pointless to start now especially when he/she already has a medical condition.

For those those who are young, and dont know what their future situation, it is important to insure oneself appropriately. Saying that so-and-so is NOT important without taking a look at situation and condition of the person we are advising is rather foolish.

I havent looked into that last point of yours, it's very interesting.

But my rule of thumb is that, if you need to invest, do it in an investment company. Medical card should only be bought for the card and not for the "investment" portion that comes with it. Too many insurance agents dont even know how to properly explain their ILPs

Agreed.

When I just graduated, I bought a life+critical illness+disability insurance with Sum Assured of RM60,000. That's quite a lot back then.

I'm now 30++, no prize for guessing how much my net worth have appreciated since then - I don't really need this insurance anymore, as anything bad happens to me, my dad can live off my net worth.

Please take note that CRITICAL ILLNESS can only be claimed when u are already half dead/one foot in the grave. Still want that money for what? Eat no taste already, drink also cannot, give u 3 wives also cannot enjoy already.

Disability? I've already told my friends and relatives to drop me off Genting Sempah cliff should one day I become an OKU.

But I'm keeping it still as this plan were generating investment returns in excess of EPF dividend rate if kept to maturity/keep until 50 years old (last time I checked, IRR >6-7%, yeah I know my IRR calculation ), so I'm just keeping it as an "additional EPF".

That is sad to hear. But this leaves with so many questions that I dont even know where to begin.

Was the premium continuously paid? Was this matter brought to mediation with a 3rd party?

U need insurance when you have little net worth AND u have dependents.
That's why best to buy cheap TERM insurance to cover the period when u actually NEED the insurance.
Once u don't need it anymore, cancel/terminate.

For people who cannot save/invest, insurance is still a viable option though

Relative? I don't even want to buy from a friend, cos I hantam ppl no give face wan.

What if they outlive that 20 years?

"Less than 10pc of EPF members can live above poverty line, deputy minister says"

So says the headline, but in the article was just a bunch of stats given by the deputy minister in Parliament. It's putting words into someone's mouth... quality of report is bad.

The stats means nothing much without knowing how much was withdrawn earlier at age 50, and much earlier for housing & other reasons.

(480k = 24k over 20 years. The maths is too simple... that only simple-minded financial wealth CONsultant uses it. Yeah, he puts 480k under his bed and take out 2k every month.)

===================

"I'm 1 of the 1331." 

While 69% has less than 50k at age 55. 

I think it's high time for EPF to give more dividends to the lower groups by introducing tiers and caps... since EPF often complaint of having too much money that they can safely and conservatively invest without taking too much risk and yet get a reasonable return.

er.. i'd think it depends on how big a wallet, thus that "hole" may or may not even scratch the wallet 

IF i can afford to self-cover (big if la),
why would i pay admin cost +profits +commissions +hospital cost (via medical )insurance
VS
just pay hospital cost?

Buying insurance is just risk mitigation / management - and one pays a price to push that risk to someone else (insurer).
Insurer needs to pay admin +commissions +make profits for shareholders.
Thus does one really think it's cheaper VS pay by self?

Again - this is assuming one has "enough" la.
While building towards "enough" - then i'd agree that it'll be useful to mitigate or manage risk by having the RIGHT insurances for the RIGHT reasons.

just thinking..