Personal Loan with Co-signer or Guarantor: Do You Need One for Bad Credit?

Key Takeaways

• • Malaysian banks do not accept guarantors for personal loans. Loan approvals are based solely on your financial profile.

• • Addressing bad credit is the first step to securing a personal loan. Focus on clearing unpaid debts, reducing commitments, and correcting credit report inaccuracies.

• • Beware of illegal lenders and scams. Verify any lender’s licence, avoid upfront payments, and check terms thoroughly to ensure they are legitimate and regulated.

If you’re searching for a personal loan with a co-signer in Malaysia, you might be surprised to learn that a guarantor or co-signer won’t help you secure a bank personal loan.

A co-signer or guarantor doesn’t boost your chances of approval, but rest assured—there are better ways to secure a personal loan, even if you have bad credit.

In this article, we’ll explain why guarantors are unnecessary for bank loans, and guide you on how to improve your eligibility for a personal loan without external support.

Why Having a Guarantor Won’t Help You Obtain a Personal Loan with Bad Credit

In Malaysia, bank personal loans do not permit a guarantor or co-signer to enhance your creditworthiness.

Even if someone with excellent financial standing agrees to vouch for you, banks will still evaluate your application based solely on your individual financial profile. This includes your credit score, income stability, and repayment history.

Relying on a guarantor is ineffective because banks prioritise your financial responsibility rather than external support.

If You Don’t Need a Co-signer, How Can You Get a Loan with Bad Credit?

The first step to securing a personal loan with bad credit is to address the root causes of your financial issues. This involves:

• • Settling unpaid debts

• • Reducing high financial commitments

• • Correcting any inaccuracies on your credit report

By resolving these issues, you significantly improve your chances of loan approval.

This is where Bluebricks comes in.

Our Solutions for Personal Loans with Bad Credit and No Guarantor

At Bluebricks, we specialise in helping individuals with poor credit regain control of their financial standing. Our services are designed to fix your credit issues and guide you through the loan application process.

We offer comprehensive support, whether it’s identifying the reasons for a rejected application or crafting a personalised financial plan.

Stop stressing about finding a guarantor or co-signer—we focus on improving your credit profile so that you can achieve your financial goals confidently and successfully.

Who is Bluebricks?

Bluebricks is a trusted bank loan solution provider, specialising in personal loans without the need for a guarantor. We cater to individuals facing financial challenges, such as:

1. 1. High credit card utilisation

1. 1. Late loan repayments

1. 1. Enrolment in AKPK

1. 1. Loans under Special Attention Accounts (SAA)

1. 1. Trade references issued by service providers (e.g., Cuckoo, TM Unifi, Astro)

What makes us unique?

• • No upfront fees: Unlike others, we do not ask for any payment until your loan is approved.

• • Comprehensive Proposal: We review over 8 banks to provide you with comprehensive solutions, which includes a breakdown of your total costs, monthly installments, net cash in hand, and expected loan approval timeline.

• • Quick turnaround: We deliver a tailored financial plan within 3–5 working days to help you resolve your credit problems efficiently.

Why Can This Method Help Bad Credit Personal Loan Clients Without a Guarantor?

If your current credit history is unfavourable, banks are likely to reject your loan application. To overcome this, we focus on resolving your credit issues before submitting an application.

Our method works because:

• • We ensure all negative records on your credit history are settled.

• • Credit cards are managed with minimal outstanding balances.

• • Your Debt Service Ratio (DSR) improves, showing banks that you have strong repayment capability.

By presenting a clean, well-managed financial profile, we significantly increase the likelihood of loan approval. Without these steps, your chances of securing a loan would remain low.

Who Is This Solution For?

This solution is ideal for you if:

• • You are looking to obtain a new personal loan to consolidate existing debts.

• • You wish to reduce your monthly financial commitments by converting high-interest loans into lower-interest loans with longer repayment tenures.

• • You are struggling with high credit card utilisation, late repayments on existing loans, or accounts under Special Attention or Trade References.

• • You need cash in hand to settle outstanding debts and regain control of your financial situation.

• • You are seeking additional funds for investment opportunities.

However, this solution may not suit you if:

• • You have an ongoing legal case, have been served legal summons, or have declared bankruptcy.

• • Your monthly income is below RM5,000 with EPF deductions.

• • You are not in a hurry to resolve your existing debts with the bank.

• • You can pay off your debts independently and are willing to wait 12 months to reapply for a new bank loan.

Advantages and Disadvantages of Personal Loans for Bad Credit

Advantages

• • Immediate cash availability to meet urgent financial needs.

• • Reduced monthly repayments based on the cash amount required.

• • Improved monthly cash flow, giving you greater financial flexibility.

• • A temporary solution to relieve financial pressure.

• • No more pressure from banks or creditors to chase overdue payments.

• • Consolidation of multiple debts into one or two manageable loans.

• • Elimination of previous negative records from your credit profile.

• • An improved credit report, enabling future purchases such as cars or houses.

• • Peace of mind knowing employers will not detect poor credit during periodic checks, which is particularly important for employees of large corporations.

Disadvantages

• • A consultation fee is required.

• • The loan process takes time, typically between 30 to 90 days.

• • Your total liability may increase.

Service Features & Benefits of Bluebricks for Personal Loans Without a Guarantor

At Bluebricks, we aim to provide personalised, transparent, and reliable services to individuals with bad credit. Here’s what sets us apart:

1. No Upfront Payment

Unlike scammers who demand advance payments with empty promises, we do not ask for any money upfront. Our priority is ensuring you feel secure and confident that we are genuinely here to help.

2. No Interest Charged on Settlement Funds

To fix your credit score, we first settle your outstanding debts. Once this is done, we assist you in securing a personal loan for CTOS blacklist cases, which will cover both your debts and our fee. Any additional funds you require will also be included.

Unlike other service providers, we do not charge interest on this upfront settlement amount. We remain by your side throughout the process, addressing any delays or challenges without adding extra costs, so you can move forward worry-free.

3. Transparent Fee Structure

We charge one clear and simple fee—no hidden charges, no unexpected costs. Unlike other services that stack additional fees (similar to hospitals billing for every minor item), you will always know what you are paying for upfront.

4. Formal Agreement for Your Protection

Before submitting any documents to the bank, we ensure a formal agreement is signed with you. This process keeps you in full control and guarantees that no actions will be taken without your explicit consent. You only make payment after your loan is approved, giving you peace of mind every step of the way.

5. Obtain Your Proposal Within 3–5 Days

Our team works efficiently to deliver a comprehensive loan proposal within 3–5 working days. This detailed proposal outlines the most suitable loan options for your unique financial situation, empowering you to make a well-informed decision. A short wait for a well-structured plan can make a significant difference to your financial future.

6. Customised Solutions

We recognise that one size does not fit all. Thus, we provide at least two customised loan options. This tailored approach ensures you receive the most suitable solution for your needs, enabling you to regain control of your finances.

7. Payment Only Upon Success

You pay us only after your loan is approved and the funds are disbursed. This approach guarantees you results and eliminates any upfront financial risks.

Our Service Fee for Personal Loans for Bad Credit (No Guarantor Required)

Our service fee ranges from 15% to 30% of the loan amount, depending on:

1. Issues in Your CTOS Report

• • What outstanding problems need resolution?

• • How much money is required to settle these issues?

• • How many banks can we approach after clearing your credit record?

• • What is the maximum loan amount that can be approved after the resolution?

2. Income Situation

• • Is your income stable?

• • What is your monthly income?

• • What industry or profession do you work in?

3. Debt Service Ratio (DSR)

• • Is your DSR above 50%, impacting your repayment ability?

4. Risk Assessment by Lender

• • Do lenders consider you a high-risk or low-risk borrower?

5. Cash-in-Hand Needs

• • How much immediate cash do you need in hand?

6. Why Do I Need to Pay a Fee?

Your loan application, when submitted directly to a bank, is unlikely to be approved due to your bad credit history. At Bluebricks, we leverage our connections, funders, and industry experience to significantly improve your chances of securing a loan.

Read More: Securing Bad Credit Loans: An In-Depth Guide

How Long Does It Take for a Bad Credit Personal Loan to Be Approved?

The approval timeline for a bad credit personal loan typically ranges between 30 to 90 days, depending on several factors.

• • The speed at which your current bank updates your financial record plays a significant role. Delays in resolving your credit profile can extend the approval process.

• • The loan amount you require also impacts the timeline—the larger the loan, the longer it may take for thorough assessments and approvals.

Personal Loan for Bad Credit – Step-by-Step Process

We follow a structured and efficient process to secure your personal loan:

1. 1. Document Collection: Gather your credit reports and full income documents.

1. 1. Bank Proposal: We prepare a bank proposal and provide a detailed calculation breakdown within 3 to 5 days.

1. 1. Agreement Signing & Settlement: A formal agreement is signed, and settlements are performed to address outstanding debts.

1. 1. CTOS Updates & Loan Submission: Your credit records are updated, and the loan application is submitted to the bank.

1. 1. Bank Approval: Once approved, the client receives the loan and repays us for the settlement funds and service fee.

1. 1. Monthly Payments: Clients make direct monthly payments to the bank, ensuring a straightforward repayment process.

What Is Bad Credit?

Bad credit is a financial condition that occurs when an individual has a poor credit history, often resulting in difficulties securing loans. It can manifest in various ways, including:

1. Low or Poor Credit Score (300–650)

Credit scores do not drop without reason. Factors such as late repayments, accounts under Special Attention (SAA), enrolment in the AKPK programme, or repeated bank loan applications all contribute to a declining score.

2. Late Payments

Failing to pay the amount specified by the bank after the due date is categorised as a late payment.

• • Banks usually provide a 14-day grace period.

• • After this period, the delay is officially recorded in your credit history, where it remains for 12 months.

• • Late payments extending beyond 2 months can significantly damage your credit profile, rendering you ineligible for most bank loans.

3. Special Attention Account (SAA)

If your credit card balances or personal loan instalments are overdue for 2 months or more, your account will enter SAA status. In this case, the bank flags your untimely repayment behaviour to national credit agencies, further affecting your ability to secure loans.

4. Agensi Kaunseling dan Pengurusan Kredit (AKPK)

When you enrol in the AKPK programme, a “K” remark appears on your credit report. This indicates that you required intervention to restructure or lower your monthly bank payments due to financial difficulties.

5. Trade References

Trade references occur when you fail to fulfil obligations related to service contracts, leading the service provider to report you to CTOS. These references serve as warnings for new service providers or financial institutions assessing your creditworthiness. Common examples of trade references include:

• • Koperasi Trade Reference

• • Money Lender Trade Reference

• • Telecommunications & Consumer Goods Trade Reference

Read More: What is Personal Loan Default Malaysia & How to Avoid it

How to Apply for Personal Loan with No Co-Signer

As a bank loan and debt consolidation agency in Malaysia, Bluebricks is here to help—no co-signer or guarantor required. We specialise in assisting individuals with financial challenges by addressing issues such as high debt, credit score problems, and loan rejections.

Our expertise includes:

• • Personal loan services

• • SME loan services

• • Mortgage loan services (to purchase a new home, refinancing and cashback purposes)

• • Collateral loan services

Why Choose Bluebricks for Loan Consultancy?

Bluebricks offers comprehensive financial solutions tailored to your needs, including:

• • We help clear your existing debts and negative records WITHOUT charging interest or requiring collateral

• • We increase your chances of bank loan approval

• • You’ll receive 100% bank-issued loans with direct payment to the banks

• • We will prepare a detailed proposal with legal documentation

• • No upfront fees – you don’t pay a single sen until your bank loan is approved

• • We can provide emergency funding support (case-by-case basis)

Sample Documents

Checking for bad credit is straightforward.

• • You can purchase a CTOS report through Touch ‘n Go and send it to us. Our specialists will assess it for you free of charge and determine if you have bad credit.

• • Alternatively, you can check your status yourself by referring to the samples we provide.

Another option is to provide a copy of your IC to Bluebricks, and our team will obtain and analyse the latest CTOS report for free. Our specialists will guide you through the findings and advise you on the next steps to manage or resolve your bad credit issues.

What Options Do Customers with Bad Credit Have for Borrowing a Bank Loan?

If you have bad credit, there are three main methods for securing a personal loan:

1. Slow Method (Saves on Consultation Fees)

1. 1. Low or Poor CTOS Score (300-650): Maintain timely bank payments for 6–12 months, clear SAA or trade references, and wait until your credit score improves to 650 before applying for a personal loan.

1. 1. Late Payment Issues: Consistently make timely payments for 6–12 months. Once the late payment records are delayed for 6 months or removed, you can reapply for a personal loan.

1. 1. SAA (Special Attention Account): Negotiate repayment terms with your bank, settle the outstanding balance, and then apply for a personal loan.

1. 1. AKPK Programme: Leave the AKPK programme, repay the bank directly, and apply for new loans once your old debts are settled.

1. 1. Trade References:
      • • Koperasi Trade Reference: Settle outstanding repayments with Koperasi.
      • • Money Lender Trade Reference: Negotiate and clear debts with the lender.
      • • Telecommunication & Consumer Goods Trade Reference: Resolve pending balances with telco or shopping companies to clear the reference.

2. Fast Method

Work with a reputable loan agency to resolve bad credit records promptly and secure a personal loan with professional support.

3. Borrow from Licensed Money Lenders

Money lenders are often more lenient with borrowers who have bad credit. However, loan amounts tend to be smaller, and interest rates are significantly higher. Be cautious, as interest exceeding 18% annually is considered loan sharking.

Bluebricks’ Advice for People with Bad Credit Seeking Personal Loans

Before applying for a loan, carefully consider the purpose of your loan:

1. 1. Do you need funds for a short-term emergency? (Note: Bluebricks requires at least 30 days to resolve bad credit.)

1. 1. Are you looking to reduce monthly financial burdens?

1. 1. Do you want to increase monthly cash flow for greater financial flexibility?

1. 1. Do you need to clear your bad credit quickly to apply for a credit card, purchase a car, buy a house, or meet job requirements?

1. 1. Are you seeking to avoid the mental stress of constant bank calls regarding overdue payments?

If the above scenarios do not apply, you have alternative options:

• • Slowly clear your bad credit through consistent repayment.

• • Consider entering AKPK for structured repayment assistance.

Additionally, take time to:

• • Review your budgeting to identify problem areas in your finances.

• • Understand that loan agencies provide a temporary solution to financial problems—long-term financial discipline remains crucial.

How Much Personal Loan Can I Borrow with Bad Credit?

The loan amount you can secure depends on several key factors:

• • Your credit report: The severity and nature of your bad credit.

• • Your financial profile: Income stability, monthly earnings, and industry.

• • Debt Service Ratio (DSR): A lower DSR improves loan eligibility.

At Bluebricks, we provide a free assessment. Simply submit the required documents, and we will determine how much you can borrow within 3–5 working days.

Case Study – Personal Loan with Bad Credit and No Guarantor Required