Hi guys, as per title. I just understood that if name too clean, difficult for bank to give car/house loan. Kesian baru tau.

Other than credit card, is it personal loan can improve credit score? Any advice?

Different banker gives diff advice.

Thanks!

Build the score.
Or provide more income supporting document.

Any idea how to check? how do i know if my score is ok or not?

you may pay and check your scores at
https://www.ramcreditinfo.com.my/

or

https://ctosid.ctos.com.my/ctosid_new/SimpleRegister?

Any advice which is good, PL or asb loan?

U can check at ctoscredit.com.my

Obviously ASB loan to be safe but depends on how will you use the loan from PL.

ic..
for example, i want buy 100k house in next 6 years (RM500/month), so now i apply 5 years asb loan.

is it asb loan monthly payment need to be around RM500, or it doesnt matter as long as i have credit score when i want to apply housing loan?

Mana tau i need to prove bank that i capable to pay certain amount for monthly payment before i buy the house

a friend of mine,...got no loans records for many years, ( the last loan records was 20 years ago -- fully settled 20 years ago)

he has on credit card record all the while.......

he got a housing loan approved

Thanks for sharing!

i am not aware of any other option than credit card if you want a zero cost option.
and if your income is not strong enough, pledge 5k FD to get a card, 99.99% approve like that.

This post has been edited by lamode: Jul 19 2018, 10:30 AM

Avoid personal loan at all cost.

Thanks for ur advice!
May i know why? Related to ctos?

Take personal loan only if you can make money from it. Otherwise you would be just working for the bank and not get paid.

Continue here bcos dont want hijack asb loan thread.
afaik, bank refer ccris for blacklist n ctos for credit score. Im looking for effective way to create credit score. CC, PL or asb

i c.. back to topic, does personal loan commitment include in ctos?

good that you shifted the post

for me, the effective way to create credit score. CC, PL or asb is
depends on your financial circumstances...
if can qualify and has sustain it...go for ASB loan ......(save, earn while waiting for the score to built up)

else, go for CC.....spend within the mean and repay montly promptly......(you "may" lose annual fees charges, while waiting for the score to built up)

else, go for PL.....spend or use it for other investment and repay promptly monthly.....(you lose on the interest charged by the bank, while waiting for the score to built up)

so hope that is clear......so what do you decide now? which one would you choose that make more sense?

no right or wrong.....only you know yourself better

So i can conclude all these 3 will build my credit score right.
Im more to asb loan or pl instead of cc bcos tak layak
Do u in banking industry?

Btw if u ok, can give opinion for my post #7?

What cc tak layak? Majority cc need RM24k-36k annual salary.

if you are concern about track and score record....go for the 5 yrs plan....
I think, just thinking,.....you can go for more years too...just terminate the loan.

just beware that,....will your new housing loan Debt Service Ratio be affected by this ASB loan?...the bank track that too....

Gaji kecil huhu


I think i can commit max 10 years only.

Before this i never knew clean name is not good, must have credit history. Really appreciate ur replies

If your income meets the min annual income requirement, apply for credit card with NO ANNUAL FEE.

But generally speaking, if you have got no credit score, meaning your CCRIS is blank.

I used to be in your position and was advised to apply credit card to build up CCRIS, my first card was from UOB (usually comes with annual fee, but first 2 years the annual fee is FREE).

Once you got your first credit card, start using for about half a year/ 1 year, and do make sure you make the card repayment on time, then you are free to go.

This post has been edited by a.lifehacks: Jul 19 2018, 12:34 PM

Im in this situation right now. Banks give advice same as u mentioned. Thanks for sharing ur exp!

If you can't have RM24/k annual salary then do as what people said. Pledge RM5k in FD for card.

Recently I came across some article that may assist you in building up your credit score.

https://www.ctoscredit.com.my/learn/how-to-build-credit/

https://www.comparehero.my/blog/if-you-dont...ve-credit-score

Hope the above links help.

If your gaji can't reach 24k to apply basic CC, i think its even harder for you to apply for 100k housing loan even if you build up your credit score. The credit team essentially look at your DSR to see if you can service your loan first, if borderline then only they see your credit health (credit score). No matter how good your credit score, if your DSR dont meet the required threshold, will still kena rejected.

And don't take PLoan or ASB loan merely for the sake of building credit score you are essentially losing money and worsening your financial health. My best advice is that save your money up for 5 years (maybe you can get around 30k?). Put in a larger down payment for your 100k house, essentially lowering yr DSR and your loan will be approved. Banks even prefer this method that if you put in more leverage (instead of just 10% of property value) as its more secure for them.

"And don't take PLoan or ASB loan merely for the sake of building credit score you are essentially losing money and worsening your financial health. "
mind sharing , how does taking ASB loan be essentially losing money? does this applies to taking loan to finance Fixed Priced funds?

"My best advice is that save your money up for 5 years (maybe you can get around 30k?)."
Mind sharing, while saving during this 5 yrs, where should the money that are in this cumulation period be "BEST" placed?
What saving vehicle can help to provide credit score track records that TS needed to built while in the 5 yrs money cumulation stage?



This post has been edited by yklooi: Jul 25 2018, 08:04 PM

Whatever loan you take (esp Asb loan at 5%? Ploans at 6+%) these are fixed liabilities. Can you guarantee fixed priced funds (or any funds) to beat that percentage - dont forget when you invest to those funds you only materialise your "gains" after like 5-8 years? if you are lucky. Whereelse you are committed to repay those loans every month. Can he sustain those payments (while he can only realise his gains after many years?)
Only a fool will take risk for such measly gain (lets say the fund gives you a handsome 8%) less your loan payment - you get back 3%. High risk low gain

The amount is too small to realise any substantial "gain". He doesn't have access to more sophisticated investment vehicle (very little ppl have) - everyone thinks the best bet is to invest in unit trust funds, ASB funds because that is what is available - if you have some money go ahead - but certainly don't take loan for that sake.

And at that amount, you can't build any real credit score. you think bank will care about your loan repayment health if you can't even qualify for 24k p/a cc?
(btw i mean not to offend you, i'm merely speaking out facts of financial world)

Save up the money, put down more leverage for the property, and prove your monthly income can easily handle the DSR of the property.

thanks for sharing....

on this "Only a fool will take risk for such measly gain (lets say the fund gives you a handsome 8%) less your loan payment - you get back 3%. High risk low gain "
i have read in LYN...that, for ASB loans, one just need to be able to pay repayment for about a year......then no need to pay from one own's pocket as the dividend given is able to generate enough repayment amount for the rest of the loan duration....

did you knew about that before? not true?

on this....
"Save up the money, put down more leverage for the property, and prove your monthly income can easily handle the DSR of the property........"
do you mean, if one put in lets says 40% down payment, then no need credit score track records to get loans for the 60%?


This post has been edited by yklooi: Jul 26 2018, 10:50 AM

"i have read in LYN...that, for ASB loans, one just need to be able to pay repayment for about a year......then no need to pay from one own's pocket as the dividend given is able to generate enough repayment amount for the rest of the loan duration...."

technically if the fund can outperform yr loan rate, maybe yes. but don't forget over 12 months u are paying loan repayment monthly, then only u get back the money at end of year.

what happens when the dividend is not enough to cover? double loss. if you are in the position where you need to borrow money to invest into asb (i think your financial health is not that good that you can handle 5% loan repayment every month).


"do you mean, if one put in lets says 40% down payment, then no need credit score track records to get loans for the 60%?"

sure, 30%-40% is prob enough for banks to feel secure - provided you can handle monthly repayments. like i said credit team don't approve loan based on credit score (you can pay your loans on time for 10 years, but if you loan repayment is only a few hundred a month, will they have confident when u take on a few thousand a month loan?) it just shows u are good at repaying loan, it doesnt show u are capable to handle the loan repayment.

This post has been edited by yklooi: Jul 26 2018, 11:18 AM

For the dividend rate, why dont you find out and post it here? Again pls read, not saying its not higher than interest rate, but rather how much higher. 1%? 2%? and again, can your financial situation handle the monthly loan repayment? if you can, i don't see why you have to take loan to invest, instead of just investing with your own money.

Bank don't care if you are good at repayment, you can have good repayment for 10 years, and the next month you can default when you lose yr job. Bank care if you are "capable" to repay the loan, and if you actually default - whether they can recover their money by selling the asset. you pay 30% down payment - its enough for the bank to recover 70% of prop value.

Feels like i'm repeating myself or i have to explain every single thing to abcde.

off topic but somehow, people didnt still get ASB Loan... high risk for low gain? do you guys know what leverage mean?

let say you take 100k asb loan, and it is 540 per month
lets compare that against just investing yourself in ASB for 540 per month shall we

540x12= 6,480
dividend = 7%
let say interest at 5.5%
interest amount is on reducing balance but for the sake of easy calculation let just say you pay on balance 100k 1st year (real number would be lower since you pay monthly)
1 year interest = 5,500

at the end of 1 year this is how much you will get if after 1 year straight away cancel loan
total investment = 6480
total return = 6480 (principal) + 7,000 (dividend on 100k straight) - 5,500 (interest)
= 23% ROI

vs

invest yourself = 6480 (principal) + 227 (dividend on 6480 adjusted monthly contribution)
= 3.5% ROI

Assumption 1 : You can get 100k loan.
Assumption 2 : You get 7% dividend.
On paper, looks very nice. Problem with not having real world experience

Btw, please use borrowings of 1m ASB loan to get 7% dividend yield for (70k-55k) + 6480 = 331% ROI.

This post has been edited by cfkoon: Jul 26 2018, 11:54 AM

Max for ASB either loan or not is 200k bro... there is no need to get defensive and attack experience or not, im just replying to say that statement that you are taking a major risk for a small gain is misleading since you deduct directly from %return to %interest and not taking into account the leveraged amount that the % is calculated against... IMO the return is actually outweigh the risk since what other investment vehicle that the capital is guaranteed?

This post has been edited by feiraron: Jul 26 2018, 12:18 PM

Bank will never loan to people who can't sustain their loan repayment whatever loan it is.

Without any CCRIS record, whether 10/90 or 30/70 there's no guaranteed bank will loan to that person that gives more down payment. The 30% can be borrow from relatives you know.

Loan to invest it's call leverage. Whether the net return it's 1% or 3% or 10% it's still a gain and don't forget the magic of compounding interest.

For a sophisticated investor but then don't know anything about ASNB average dividend over the past years, must be living under a cave for far too long.

Cheers.

there is a magic in ASB loan.....there are many write up in the web about loan vs cash...
or try post at LYN ASB loan thread
https://forum.lowyat.net/topic/667676/+3460#entry89714483

Because what you preach is highly hypothetical n impractical - leveraged investment works (in theory) but once again as i said its highly risky - its for the sake of the forum of readers to not fall for pretty numbers and unrealistic return - you have to learn to be responsible for what you preach.

For a sophisticated investor, of course we don't look at things like ASNB dividend yield, why will my RM give me products that are openly available to public we do products Local High Yield Bonds + MTNs, Dual Currency Investments, Foreign-denominated Bonds and Structured Investments (Interest-linked, Index-linked), etc

Some users (like Rapple) can't comprehend simple things, gives comments that has no contribution, but want to sound out others - i dont know how he's not embarrassed with himself. But still feel salty from another post haih

And once again guys, I have said it, and please don't make me say it again.
1. Never said CCRIS/CTOS not needed - I already said its not the most important factor
2. You can pay 30% down payment, if your DSR not good also kena rejected. I repeat focus on your ability to repay loan - i repeat, make sure can meet monthly repayments.
3. And pls go ahead with ASNB, at the end of the day, that's my opinion. you want to listen, don't want listen, its fine. I have met many ppl who failed because of "leveraged investment" mostly in property market, same concept applies here.

Good day

Does he even know ASB is a fixed price fund? Theres no risk of capital loss. The only risk is low dividend pay out that will cause some cash flow problem to the borrower.

Yet again I have to embarass myself to speak out so that people wont be misguided by some sophicasted investor here.

Cheers.

" why will my RM give me products that are openly available to public we do products Local High Yield Bonds + MTNs, Dual Currency Investments, Foreign-denominated Bonds and Structured Investments (Interest-linked, Index-linked), etc"
WHY?...my most probable reasons are....
a) the RM will make a lot of commission out of it......
b) that investor does not qualify for ASN loan .....
c) this "sophisticated" investor just got into investment knowing nothing about investment and leverage but invest by listening to the RM ......just like a newbie with cash and the bank teller would says..."Why hold so much cash in saving a/c?.....better moves some to FD for more interest rate".......(many readers would recall this similar experience I guess)...then later as time goes by......the teller(RM) will suggest to the "investor" something more....

The world is full of many kinds of people,....
some just pretend to know,
some just pretend to not know,
some just know,
some just don't know,
some just they see it and know it,
some just see but don't know it,

and the list goes on.....

example is..... not really understanding what forummers like rapple and feiraron talked about......
eventough, feiraron came out with a math workout sample....

yet he posted in response to feiraron posting mentioning about his misleading posting about ASN FP loan risk........... "Because what you preach is highly hypothetical n impractical - leveraged investment works (in theory) but once again as i said its highly risky - its for the sake of the forum of readers to not fall for pretty numbers and unrealistic return - you have to learn to be responsible for what you preach."

saying that ASN loan is "highly risky" yet I wonder how high are the risk when "......we do products Local High Yield Bonds + MTNs, Dual Currency Investments, Foreign-denominated Bonds and Structured Investments (Interest-linked, Index-linked), etc

when one talked about "......you have to learn to be responsible for what you preach.".....

"..... many ppl who failed because of "leveraged investment" mostly in property market, same concept applies here. ".......naïve to think ASN FP fund and property loan levearge are the same,........not realising the great differences of one over the other


it does occur to me that your post about "For a sophisticated investor but then don't know anything about ASNB average dividend over the past years, must be living under a cave for far too long." is true.



This post has been edited by MUM: Jul 27 2018, 09:22 AM

No risk if you used your own money. Risky if you depend on "leverage". Yes you embarrassed yourself again.

L O L

Own money = No risk?

Bank money = Got risk?

What logic is this?

Good luck to your sophisticated investments.

I shall just rest my case here.

Cheers.

And yet, I'm the one who has access to those products.

And you have to depend on something like "leveraged investment"
I've seen many of yr ilk promoting leveraged investment like its a heaven-sent strategy to make money. I laugh.

And again n again, i have to repeat myself - when you guys argue please read the whole thing la - i repeat in simpler english (last time yeah)

Limpeh never said leveraged investment can't earn you money. Limpeh just say its risky (very risky) - not worth my time. Limpeh also say go ahead and do that, because for those have trouble understanding concept, they always think very smart but have trouble listening advice. You want to listen, good for you, my life is the same. You don't want to listen, its ok, my life still the same.

One day bank send "men in black" find you to chase you repay money, maybe can ask them. What logic is this?

Thank you. Next time you want learn more, can DM me. I still will help out.

Limpeh says ....let the readers decides who is right and who is faking to know (I am the one faking 90% of the time )

saying leverage investment on ASN loan with leverage in property is the same, (not realising that there are differences in both of them)
suggesting to save to buy property with bigger down payment instead of building a credit score to get loan.....(yet not realising h/l is the "cheapest" loan)
saying ASNB FP loan is highly risky, yet.....
saying all that above while are an investor in products like Local High Yield Bonds + MTNs, Dual Currency Investments, Foreign-denominated Bonds and Structured Investments (Interest-linked, Index-linked), etc

you are good to come in here at FBIH-LYN.....to enlighten us more about your "views" ...hopefully many readers can see your "views" and tell their friends ....

No problem, what I advice, ppl want to take it as fact or air (can read my explanations to my view). But those preaching leverage investment until now have no solid reasoning (just fake promise of "gain" like salesman like that - doesn't explain risk doesnt explain the other side of story)

don't think ASN loan n property LI is exactly the same, but fundamentally still the same crap, risky.

yes highly risky, yet... never continue...

h/l is not the cheapest, hire purchase (car loan) is. bro at this point why u want to argue.

still an investor in those, and still saying what i said. i hope instead of u do leverage investment, you invest in yourself to go study some finance n investment classes first, before trying to make quick buck with the wrong mindset.

This post has been edited by cfkoon: Jul 27 2018, 10:01 AM

with this statement (in RED).....

".....you invest in yourself to go study some finance n investment classes first, before trying to make quick buck with the wrong mindset.".....is very true indeed for those that believe the RED to be so....



.......pls go ahead with this thinking, at the end of the day, that's your opinion. on the opinion of other forummers, you want to listen, don't want listen, its fine. I believe you have met many ppl who failed because of failed/misunderstood mindsets.....

end of the day is the readers will have to have a wisdom to know and differentiate the truth of what were posted here for many forummers had not learnt to be responsible for what they preached.....maybe due to stupidity or naiveness or had their own intention preplanned, etc, etc....either 1 or a combination of all

hahaha its fine, many ppl can't accept their own shortcomings and inexperience, but opinions must be rationale. no rationale don't argue - just let it go, save your ego for another day (this advice will come in handy yeah)

I agree on your statement on the readers - readers make own judgement.

opinion may be rational, even with rational... but when the maths had proved that the rational opinion to be wrong...it will be wrong too; even if the opinion is rational in the view of the giver of opinion.

just hope that his/her parents/relatives knows what had been posted and realised how effective or worthy had their money had been spent on providing the education to the giver

and the maths on the truth or myths of car loan is cheaper than housing loan had been posted many times in here too

its ok dont blame your parents, you should have worked hard to study more.

Oh now u talking about the "backstory" of car loan vs house loan - this one everyone also know - you merely asked for cheapest loan, next time dont say half half, cause confusion. later your parents get even more sad.


Lazy to reply new thread, so just edit here - cheapest rate still car loan. fact. now if talking about the underlying "value" of cost of car loan vs house loan, probably not. car is depreciating asset, provide no income generation , real estate appreciating asset, and provide income opportunities. hence the value.

This post has been edited by cfkoon: Jul 27 2018, 11:36 AM

Few posts up...someone said hl is not cheapest but car loan is.
who is that someone......??

an again.....another mistake.... to assume that "cheapest rate still car loan. fact". when comparing against property loan...especially when 1 is just looking at the interest rate % (ex; car loan is 3%, while housing loan is 4.5%)
you are not the 1st one to have thought that.

hire purchase loan rate may be cheaper than housing loan rate, if the rate are still lower AFTER converted to housing loan type

the type of loan type is not the same...one is flat rate and the other is not.

btw, working hard and study hard is of no use, when one does not have the wisdom to learn and be learnt.




This post has been edited by MUM: Jul 27 2018, 05:27 PM

its funny that TS created this in order to avoid the hijacking the ASB loan thread and now the ASB Loan discussion is here

TS, my personal opinion is simple, honest and comes from personal experience. hope you like it better than listening to people throwing jargons around to feel superior. since you are talking about credit score, banks would like to see a few things: 1) has a relationship (use any of their product) 2) evidence of ability to pay that relationship 3) Prompt payment of those relationship

try imoney.com to see which CC has minimum salary to apply of 2000 (i think thats the minimum as it gets) but if you do get it, please please know that it is a double edge sword and it is always tempting to know that you have that credit limit that you are able to spend. In other word it can end up hurting your credit score much more than having unknown credit score

personal finance is 80% behaviour and only 20% math. I would equip myself if i were in your situation with budgeting knowledge such as zero sum budgeting (i find that this is the best method for sticking to budget) because if you have this then you yourself can tell whether you can afford a car or a house rather than rely on credit score hoping it will tell the bank you are qualified or not. Banks always wants to give out money to qualified person anyway, no need to fret too much as long as you take care of your money in (income) side of things.

Where ASB Loan comes into picture, NOT because it is no risk, but because it is FORCED savings. it wont hurt your DSR much if you are just in it to create that relationship dont take that big of a loan and max your term. it tick all the boxes,
1) it is not that hard to get (my wife 2.4k salary can get 100k approved easily) banks are practically paying people to give this out for reason no 3
2) have a relationship with bank, show you can make prompt payment AND make money while you are at it
3) if anything happen cancel anytime, yes you may lose money in the event that the dividend is lower than interest, but it is limited to what you already paid, there wont be people chase you to pay back the loan (like some are suggesting because they dont understand capital guaranteed) unless Malaysia (yes the whole country's government) is bankrupt but if that happen you have much more things to worry about than your credit score

What other alternative? Personal loan, please avoid at all cost unless you like to give yourself a long time stress and very short term happy feel. if you say what if use for investment or business, then i agree with cfkoon, your loss here is guaranteed but your return isnt.

This post has been edited by feiraron: Jul 27 2018, 12:27 PM

Personally very good advice, kudos this is the kind of rational explanation that should be more present here. I agree with most of the stuff.

Other than that, its ok we are all grown up, no need throw anonymous shade haha. Can directly just quote names, its not like you are doing it directly to my face, just through a lowyat forum.

good job though.

This post has been edited by cfkoon: Jul 27 2018, 12:51 PM

For pledged FD, can withdraw later onot?

sure can...
just that what ever money due from the unpaid balance of amount spend by the card must be repaid before hand

Thanks! But FD have its maturity date. I suppose that once the FD matures, the money (+ interest) can get back? Or still have to repay unpaid CC balance first?

Fd a/c and cc a/c are different.
Depends on what option you selected for the interest to be chanelled to.
Pledged fd is linked to yr cc card. No fd no cc

1tanmee like what MUM said for the interest portion.
if you want to continue using the card, the FD will auto-renew at maturity.
generally speaking, to uplift FD, you will need to cancel the card first.
you should ask bank for details, differ from bank to bank, some allow to you request for credit review after 6/12 mths to undo the pledge, but still let you have the card upon approval.

Thanks both for the reply! It is clear now

Go with asb financing. Max 30year tenure so the monthly comitment will be less. You will improve your credit score & got some saving to. You also can cancel asb financing anytime 😍

Don't click on the link in the post above
It's a malicious link

Ps. He hide the link using black text

This post has been edited by neverfap: Oct 18 2019, 11:29 PM