Key Takeaways
- It’s possible to obtain a personal loan in Malaysia without a traditional credit check, providing a solution for individuals without extensive credit histories.
- Some financial institutions may evaluate non-traditional factors like income consistency and banking activity rather than relying solely on credit scores.
- However, financial institutions might still require a basic level of creditworthiness, so it’s crucial to familiarise yourself with the specific criteria of each financial institution.
- Exercise caution with certain types of loans, particularly payday loans, which are known for their hefty fees and brief repayment windows.
- There are multiple ways to start building credit, such as securing a secured credit card, being added as an authorised user on someone else’s credit account, and more.
Are you applying for a personal loan? But what if your credit history is non-existent? A personal loan with no credit check in Malaysia can help!
This article explores the avenues available for individuals seeking financial support without the traditional barriers posed by credit checks.
It provides practical solutions for Malaysians in need of financial assistance, ensuring that their lack of a credit history does not hinder their aspirations and needs.
Is it Possible to Get A Personal Loan with No Credit Check in Malaysia?
The short answer is yes. It’s possible to secure a personal loan without undergoing the traditional credit check.
While most banks and financial institutions rely heavily on credit scores to assess loan eligibility, there are some that may consider alternative factors.
These may include your income stability, banking transactions, and even your rental history, offering a broader picture of your financial health beyond just credit scores.
However, it’s crucial to note that institutions evaluating these alternative factors might still require a minimum fair credit score.
Additionally, if there are issues with CTOS (such as legal cases or bankruptcy, which we do not handle), individuals can still borrow, but only employed individuals can apply.
They must have EPF deductions, and their basic salary must be above RM5,000 to be eligible for bank loans.
Furthermore, personal loan terms can vary significantly, making it essential to delve into the specifics of each offer before proceeding.
Applicants should also exercise caution, particularly with certain loan types like payday loans, known for their steep fees and short repayment terms.
Read More: Credit Card Debt Malaysia: How to Pay Off Your Credit Card Debt
How to Build Credit When You Do Not Have A Credit History in Malaysia
Building a credit history from scratch can seem daunting, but there are several strategies to pave your way:
1. Apply for a Secured Credit Card
An accessible gateway to building credit, these cards require a cash deposit that serves as collateral against the card’s credit limit.
This reduces the risk for the bank, making it easier for borrowers to get approved even without a credit history.
2. Become an Authorised User on Someone’s Credit Account
Get added to a family member’s or friend’s credit account. This can help you piggyback off their credit history, provided they maintain a healthy credit score and timely payments.
3. Pay Your Monthly Bills On Time
Consistency in clearing your monthly bills, including utilities and phone plans, is key to establishing a reputation of reliability with financial institutions.
4. Monitor Your Credit Utilisation
Credit utilisation refers to how much of your available credit you are using.
Aim to keep your credit utilisation low, ideally below 30%, to avoid the impression of financial distress.
5. Make Small Purchases & Settle Them Promptly
Use your credit card for minor expenses and clear the balance monthly. Doing so demonstrates responsible credit management without accruing debt.
Read More: How Does a Personal Loan Affect Credit Score in Malaysia
Bluebricks’ Loan and Consultancy Services
In conclusion, securing a personal loan without a traditional credit check in Malaysia is feasible, with various avenues available for those starting their credit journey.
Bluebricks, a trusted bank loan and debt consolidation agency in Malaysia, is committed to guiding you through this process, ensuring you make informed decisions tailored to your financial landscape.
Our services include:
- Personal loan services
- SME loan services
- Mortgage loan services (for buying a new home, refinancing and cashback purposes)
- Collateral loan services
We can also help you obtain the ideal loan option tailored to your specific situation, taking into account various aspects, for instance:
- The loan amount you require.
- How urgently the loan amount is needed.
- Whether you or your parents own a property that has been held for over ten years.
- Your income level.
- Your CTOS score (such as your credit score and credit history).
