Hi,

I am thinking about applying for rhb personal loan, 5k for 12 months to get a credit score. I don't currently have any loans or monthly payments, other than Hotlink Postpaid.

Will I be able to get a loan from RHB for a year? I don't need it for anything, I just want to get a good credit score. I already have a car, so I don't want to get a car loan to get credit score.

This post has been edited by KKS21199: Mar 22 2021, 08:10 AM

Why bother getting personal loan when you can get credit card instead with lower interest on personal loan

With your earnings no banks will lend to you as you are most likely to be a risk to default on your loans unless you have a guarantor or FD as collateral instead

15% per annum will kill your earnings on personal loan

Learn on how to invest instead and once you grow your investment then your credit score will rise instead

can apply CC with his income of 1.8K?

Not a wise move. Honestly if you're already making good payments on time continuously for your car loan, your credit score would be pretty good. Personal loan should not be used to boost credit score because of its high interest rate and high fees.

Also, at 12 months tenure any credit score you earn will become wiped out after 12 months, because once personal loan paid off it'll be closed and won't be weighed as much when it comes to your capability to manage debt. Read more here: https://www.experian.com/blogs/ask-experian...help-my-credit/

And assuming the lowest offered interest rates on the market it's around RM450 monthly instalments, which would put your DSR in an uncomfortable position so it'll affect your ability to apply loan during these 12 months anyway. If you don't need the loan for anything it's incredibly wasteful.

Using FD as collateral instead with credit limit of 2x of the FD pledged

I been doing that for so many donkey years already

kks21199 do take note of above suggestion...
just not sure if FD pledge is still accepted now or not

I didn't get a car loan, so I don't have any credit score as of yet. The only reason I'm considering personal loan is to get some form of credit history.

Which banks have you done it with? I can pledge fd if required by the bank.

Can't get credit card haha, and I don't really want one 😂

This post has been edited by KKS21199: Mar 22 2021, 08:53 AM

Try HLB, Citibank, OCBC or UOB

But most of them will forced you to take credit card

Just make sure take credit card which is free for life and locked it up in bank safety deposit so that you won’t tempted to spend on it

Credit card will be useful if you manage well because a lot of incentives, promotions and cash back now given to spur the economy in terms of domestic spending

I have a sudden thought. Can one person who is unemployed or not a business owner pledge FD for a credit card?

not sure if this is a concern,....this just came to mind.

if you pledge your FD and the CC limit is max to your pledged FD value....
this then will like a debit card,...then will this kind of CC helps in getting into the Credit score card?

technically the bank does not "lend" you any credit at all.....thus "should not be" in the Ctos/ccris score card...

need to explore more.....

Yea I don't mind having something like that, I checked ocbc they have overdraft facility. I am not sure about the ctos score though.

@xander83 His advice is on point. I would recommend you to either pledge FB to get a CC (if possible) or wait your salary to reach 2k for 1 year or more to get a basic CC (Free for life CC) to get a credit score, at least that is not your debt. Personal loan is a negative impact on your score anyway. Once you managed to get a CC, make good payment record for 1 year and above might get you a score in CTOS.

This post has been edited by _kilakila_: Mar 22 2021, 11:20 AM

I'm quite sure yes, as retirees also have a right to a credit card.

Just to warn that for some banks, personal loans are hurting the credit score.

Pawn broking and personal loans are destructive to some personal loans, depending on the banks..

Yes and it depends on the banks itself on whether they are willing to lend you the credits via secured collateral like share pledges, FD or AUM of at least of 200k

Hmm..
Interesting...
Didn't know unemployed or retirees can get CC too...
So the unker & unties I see having quite big sum in FD actually using it for CC 🎯💪🧐

Investment has nothing to do with credit score...it won't help him there. He just needs to pledge FD for a credit card and it'll improve his credit score as long as he keeps the utilization low. Even if he doesn't use it at all, just having a credit card active will boost his credit score up to a certain tier as long as he doesn't close it. A higher limit means he can roll the balance every month and pay it off at the last second to improve cashflow. This won't work as well if he has a higher usage which is over 33% of his credit limit since it'll drop his credit score even if he pays it off in full every due date.

Somewhat on topic since it relates to an issue I've had recently. I'm not sure when the CCRIS history updates every month so maybe someone with more experience can chip in there since I've noticed that paying off 2 weeks early didn't do squat since Experian combined both months' balances into one for this month and dropped my credit score even though the actual utilization is way below 33% on my Visa because I paid it off early. According to the website the CCRIS should update on the 15th. I paid the previous statement outstanding on the 3rd and yet somehow on 19th (when Experian updated my report) it still combined my previous statement balance (fully paid 2 weeks prior) with the outstanding. I don't understand where the issue is

Of course. You don't need income if you pledge FD. Just make sure you don't get an idiot handling your application. Sure kena reject one if they apply through income instead of FD... Otherwise 100% confirm lulus.

It's a credit card. It's not even remotely close to being a debit card. This is called secured credit. The bank is extending a line of credit to you because you have an asset backing that credit. The FD is basically not even in the equation unless you fail to make multiple payments in which case the bank will liquidate your FD to pay off your outstanding balance. In a way it's the safest way to leverage debt since both parties basically have no risk. It's the same story with certain business loans for SMEs. Some companies won't normally qualify for certain loans which is why they pledge FD in order to get credit from banks.

No. Those are just normal FDs. FDs need to be pledged in order to qualify for a credit card or a loan. That means you can't uplift it online and you need to go to a branch to cancel the CC and free up your FD again. Otherwise anyone with FD would qualify for a credit card regardless of their income. Malaysia isn't like the US where anyone with a pulse can get a credit card. BNM is pretty strict with the requirements, i.e - 2k minimum income for the shittiest cards like Aeon and the credit limit being 2x your monthly income if you make below a certain level.

Thanks, I'll try to go to Maybank next week and check if they can offer me a cc for pledging fd.

So to maintain my credit score I should spend less than 33% of the credit limit? And as long as I pay everything back by the end of the month it should be fine right?

--duplicate--

This post has been edited by KKS21199: Mar 23 2021, 11:09 PM

Yeah you should keep it under 33%. Going over it will drop your credit score significantly even if you pay it off in full. I emailed Experian about my recent issue and they said it's Maybank's side which is baffling since it means they never bothered to update the proper outstanding to CCRIS. I wouldn't really recommend Maybank unless you want the cashback since it has higher SST due to the 2 cards they give you but iirc you can also apply for the other cards (like the Ikhwan for petrol/groceries cashback) with a lower than 5k FD. It's just the M2Gold cards that need 5k minimum. You can find more information on their threads. Most if not all the other banks also offer CCs for pledged FDs so you're not limited to Maybank at all. The ones that have active promos for this that I know of are Affin and Hong Leong. The Affin Duo is pretty good as well since you can get cashback for topping up ewallets.

This post has been edited by red streak: Mar 24 2021, 12:20 AM

To find out whether you’re ready to take on new debt, you can measure your credit status against the criteria that lenders use when they review your application. this is 5 Cs of Credit: Credit history, Capacity, Collateral, Capital, Condition

Building your credit score is a good idea, especially if you don't have any loans yet. I was in a similar situation and needed to improve my credit score. Choosing a personal loan can help, as it shows you can handle borrowing money well. I did something like this myself. I used payday loans because they were quick and easy. It took only about 5 minutes to get everything done online, and I didn't need to go to a bank and wait for a long time. This helped my credit score get better.

This post has been edited by sc@pj: Jan 11 2024, 05:46 PM