Clearing Credit Card Debt and Securing a New Personal Loan for Business Survival

By: Wilson
Updated On: 07/08/2024

Client’s Situation: The client wanted to apply for a loan for investment but was rejected due to high credit card debt and a high Debt Service Ratio (DSR). We helped our client clear RM95,000 in credit card debt and secure a personal loan, resulting in close to RM100,000 cash in hand!

Customer’s details:

Customer’s Basic Information:

• Total Debt: RM155,000
- Credit Card Debt: RM95,000
- Personal Loans: RM60,000
• Monthly Payment: RM5,500
• Problem: High credit card debt and DSR led to loan rejections from three banks.

Reasons for Bank Loan Rejection

❌ Credit Card Usage: 90% (bank limit: 70%)
❌ DSR: 93% (bank limit exceeded)
❌ Needed to Clear: RM95,000 in credit card debt

How BlueBricks Helped

After seeing our ad on Facebook, the client reached out to us. Here is what we did:

1. Required Documents:
- Latest CTOS report or IC (front and back)
- Latest 6 months’ payslips
- Latest 6 months’ bank statements
- Latest 2 years’ and current month’s EPF details
2. Quick Assessment: We reviewed his
documents and provided a bank loan solution in 3 days.

Bluebricks’ Solution

1. Reduce DSR: Lowered his Debt Service Ratio.
2. Clear Part of the Debt: A lump sum amount was used to clear RM95,000 of his credit card debt.

Initial CTOS Report

Improved CCRIS Report

Results Obtained by the Customer

✅ Secured a new personal loan of RM300,000.
- RM150,000 to consolidate an existing debt with high interest.
- RM150,000 to pay our fee and have close to RM100,000 cash in hand for business investment.

Case Summary

• Income: Above RM5,000 with EPF deductions
• Main Issue: High credit card debt raised his DSR, causing loan rejections.
• Bluebricks’ Help: Calculated and provided a bank loan solution, pre-settled RM95,000 to clear his credit card debt, and lowered his DSR.
• Final Result: Reduced monthly burden, extra money for living, and no longer relying on credit cards.

By choosing Bluebricks, the client significantly improved his financial situation, gaining more disposable income and reducing his reliance on credit cards.

Diagram: CTOS before our solution

Diagram: CTOS, after our solution, obtained a new loan totalling RM300,000

About Bluebricks

BlueBricks Holding is one of the top ten leading loan agency companies in Malaysia in terms of loan approval rates. As a leading licensed loan agency company, we have extensive knowledge and experience in mortgage and business loans, and this enables us to help our customers to get the deal that is best suitable to them.

Check Out Our Services

Wilson Wai Kit

Senior Consultant

With extensive banking experience, notably as a mortgage sales officer at UOB Bank, Wilson leverages his understanding of loan applications and approvals to offer financial insights and support to empower individuals to make informed decisions regarding their financial futures.

Feel free to contact him for assistance with your financial needs!

I want to know about bank loans

Karl

Financial Advisor

Karl has a background in banking and real estate, with roles ranging from Mortgage Officer at UOB Bank to Director at Vestcom Realty. He’s skilled in managing mortgage loans and real estate projects and works closely with bank officers, money lenders, and lawyers to solve clients’ loan issues.

Karl is currently a key contributor to business loan development at Bluebricks.

I want to know about bank loans

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