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.
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.
Jul 25 2018, 03:20 PM
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.
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