Sometimes, we may face financial crises, like unexpected emergencies, which can lead to being blacklisted by traditional lenders. However, a personal loan for blacklisted individuals can provide a much-needed lifeline!
In our guide, we explore personal loans for blacklisted Malaysians, providing solutions that can help your financial recovery.
Why Did Banks in Malaysia Blacklist You?
Being blacklisted by banks can have severe consequences on your financial well-being.
Therefore, it’s essential to understand the common reasons that can lead to this situation, as it can help you avoid potential pitfalls and maintain a healthy financial standing.
Here are five common reasons why individuals find themselves blacklisted by banks:
1. Loan Default
A loan default usually occurs after the borrower has been delinquent for 90 to 180 days. In this case, the bank typically classifies the loan as a ‘special attention account’.
Consequently, the borrower’s CCRIS record will reflect the defaulted loan, which other banks will consider unfavourable when the individual applies for a new loan.
2. Late or Missing Payments
Frequent late or missed payments indicate a lack of financial responsibility and can negatively impact your creditworthiness.
This applies not only to loan repayments but also to credit card bills, mortgage payments, and other financial obligations.
3. Bankruptcy
Declaring bankruptcy is another reason why, as it indicates that you were unable to meet your financial obligations.
4. Trade Reference Debts
Apart from loans and financial debts, other forms of outstanding obligations can also lead to banks blacklisting you, such as unpaid utility and telecommunication bills.
Similar to loan defaults, if these bills remain unpaid for a significant period, the debt will be reported to a credit reporting agency, potentially harming a borrower’s credit score.
5. Engaging in Fraudulent Activities
Banks have strict security measures in place to protect their customers.
If you are found to be involved in fraudulent activities (e.g. identity theft and credit card fraud), you may be blacklisted to prevent further harm.
6. Multiple Loan Applications
Making multiple loan applications within a short period can raise red flags for banks as it suggests a potential financial strain or a desperate need for funds.
Furthermore, each loan application leads to a hard inquiry on your credit report. Too many hard inquiries can negatively affect your credit score, decreasing your chances of approval for future credit or loans.
Read More: Refinancing Costs: Understanding the Total Costs of Refinancing
How to Verify if You’re Blacklisted in Malaysia
If you suspect that you may be blacklisted in Malaysia, there are several ways (both online and offline) to verify your status.
1. Online Verification
- A Personalised Debt Repayment Plan
CTOS is a popular credit reporting agency in Malaysia that provides credit information on individuals based on records from various public and proprietary sources.
To check if you are blacklisted on CTOS, register and create an account on the CTOS website. You will need to register with your IC number.
- Central Credit Reference Information System (CCRIS)
CCRIS is a system from the Credit Bureau of Bank Negara Malaysia and contains records of your existing loan and repayment history for the past 12 months.
You can check your credit report via the eCCRIS online system, and, like CTOS, you will first need to provide your identification details and register for an account.
2. In-Person Verification
Suppose you’re uncomfortable using the online method or are facing any issues with the online process.
In that case, Bank Negara Malaysia operates self-service kiosks where individuals can directly check their credit reports and blacklist status. These kiosks are available at their branches throughout the country.
Read More: Refinancing Housing Loan Malaysia: All You Need to Know
How Being Blacklisted Affects Personal Loan Applications
Financial institutions in Malaysia always take a calculated risk when they approve a loan, as they need to be certain that they will recover their money.
Therefore, they rely heavily on credit reports to assess the risk levels of loan applicants.
Unfortunately, most banks reject loan applications from blacklisted individuals due to the perceived risk of non-repayment and defaulting on loans.
In some regions, however, blacklisted individuals may have access to financial aid or stimulus packages.
For example, in Malaysia, bankrupt and blacklisted individuals previously had access to the Bantuan Prihatin Nasional (BPN) aid, an economic stimulus package to provide financial relief to those in need.
But it is essential to note that while such initiatives can provide temporary relief, they are not long-term solutions for chronic financial issues.
Read More: Backup Emergency Fund Malaysia: No More Savings But Need Urgent Cash? Do This
How Bluebricks Can Help with Personal Loans for Blacklisted Individuals in Malaysia
In summary, being blacklisted makes securing a personal loan more challenging. Therefore, it’s crucial to maintain a good credit history to avoid these challenges.
Bluebricks is a prominent loan agency in Malaysia, specialising in helping individuals obtain the loans they need.
However, it’s important to note that we cannot assist individuals who are bankrupt or involved in legal or summon cases.
Personal Loan Rejected Services
At Bluebricks, we understand the difficulties associated with applying for a personal loan, which is why we offer comprehensive personal loan rejected services aimed at addressing these challenges.
Our team of experts possesses a deep understanding of the common reasons for loan application rejection and leverages our expertise to:
- Meticulously review your application
- Identify any issues
- Offer tailored solutions that enhance your chances of loan approval
In addition to our loan consultancy service, we also provide fast cash loan solutions for individuals in need of immediate funds.
Personal Loan for Blacklisted Malaysians – FAQs
Are you an individual who has faced rejection when applying for a personal loan due to being blacklisted?
We understand the challenges you may be experiencing and have compiled key information to expand your knowledge on personal loans for blacklisted individuals in Malaysia.
Read on to gain valuable insights and explore potential solutions to your financial needs!
If you have been blacklisted, obtaining a personal loan can be challenging but not impossible. Here are a few steps you can take:
Check Your Credit Report
Obtain a copy of your credit report from the credit bureaus to understand the extent of the blacklisting and identify any errors or discrepancies.
Improve Your Credit Score
Take measures to better your credit score by paying off outstanding debts, making timely payments, and reducing your overall debt-to-income ratio.
Provide Collateral or A Co-Signer (Family Member)
Offering collateral or having a trusted individual act as a guarantor increases your chances of obtaining a personal loan, as it provides additional security for the lender.
Generally, for blacklisted individuals, the primary concern of banks or other lenders is credit risk.
This means that a person who has previously defaulted on loan payments represents a higher risk of default in the future.
Therefore, such individuals must demonstrate a consistent history of making timely payments before applying for a new loan.
While it is more challenging for blacklisted individuals to obtain personal loans, it is not entirely impossible.
Some lenders specialise in providing loans to individuals with poor credit histories. They may consider other factors, such as your current financial situation, income stability, and loan repayment ability.
