Personal Loans for Defaulters:
Securing a Second Chance Loan
Struggling to Get a Loan After a Default? You’re Not Alone.
If you’ve missed loan payments or defaulted on past debts, getting approved for a new loan can feel impossible. Banks see defaulters as high-risk borrowers, making it harder to secure financing—even when you’re back on your feet.
But that doesn’t mean you’re out of options. Second-chance loans exist to help defaulters:
Access Urgently Needed Cash
Get the funds you need – even if banks have said no before.
Consolidate All Your Debts into One
Rebuild Your Financial Standing
Clear past issues and rebuild your credit score over time.
At Bluebricks, we specialise in helping borrowers with bad credit and past defaults secure loans with fair terms and manageable repayment plans.
What is Loan Default?
A loan default happens when you miss payments for an extended period, leading to serious financial consequences.
Delinquency
Missing 1, 2, or even 3 months of payments but still having a chance to catch up (as long as you have not received any summon letter from a lawyer).
Default
Prolonged non-payment that results in legal action, credit damage, and loan rejection.
Types of Loan Defaults
Secured Loan Defaults
Unsecured Loan Defaults
Credit cards, personal loans, and other debts without collateral. Banks may take legal action or sell the debt to collectors.
How Defaulting Affects You
Credit Score Drops
Higher Interest Rates
Banks see you as a high-risk borrower, leading to higher loan costs.
Debt Collection & Legal Action
Some banks may sue, garnish wages, or freeze accounts to recover unpaid debts.
Limited Financial Opportunities
A low credit score can affect loan approvals, rental applications, and even job prospects.
Take Control of Your Financial Future
How to Improve Your Credit Before Applying for a Loan
Before applying for a second chance loan, taking small steps to rebuild your credit can increase your approval chances.
Check Your Credit Report for Errors
• Get your CTOS/Experian/Bank Negara Malaysia credit report.
• Dispute outdated or incorrect negative records.
Reduce Your Debt Service Ratio (DSR)
• Pay off small outstanding debts to show financial responsibility.
• Negotiate with creditors for better repayment terms.
Build a Positive Payment History
• Set up automated payments so you can avoid missing due dates.
• Keep credit card utilisation below 30% of the limit.
Avoid Multiple Loan Applications
• Every loan application lowers your credit score temporarily.
• Focus on one strong application rather than applying everywhere.
Show Income Stability
• Maintain at least 6 months of continuous employment.
• Consider freelance or side income to improve loan eligibility.
Can You Get a Personal Loan After Default?
Our approach ensures that you remain eligible for bank loans with competitive interest rates and loan tenures of up to 10 years.
How Bluebricks Helps Defaulters Secure a Second Chance Loan
Getting Approved Despite a Low Credit Score
Bluebricks offers a solution by first settling your bad credit—without adding interest, requiring collateral, or needing a guarantor—before submitting your loan application to the bank.
Once your bank personal loan is approved, we use the funds to clear the principal, plus a single service fee (with no upfront charges).
Debt Consolidation for Lower Monthly Payments
If you’re juggling multiple debts, we help:
- Combine debts into one loan for easier repayment.
- Lower monthly instalments, freeing up cash flow.
- Reduce interest rates, cutting long-term costs.
Loan Restructuring for Faster Debt Clearance
We help clients:
- Negotiate better repayment terms with banks.
- Shorten loan tenure for quicker debt freedom.
- Improve creditworthiness for future financial stability.
Fast Loan Processing & Immediate Funds
Need urgent cash? We:
- Work with banks that offer fast approvals.
- Ensure funds are disbursed quickly for emergencies or business use.
Credit Repair Strategies for Long-Term Stability
- Settle past debts to clean up your credit history.
- Develop repayment plans to avoid future defaults.
- Provide guidance on smart financial habits.
Why Choose Bluebricks?
No Upfront Fees – Only Pay After Securing Your Loan
Transparent Terms, No Hidden Costs
Fast Loan Processing
More Than Just a Loan—We Help You Stay on Track
Testimonials
What our clients have to say:
Case Study
Wilson Wai Kit
Financial Advisor
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!
Feel free to contact him for assistance with your financial needs!
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.
Personal Loan for Defaulters – FAQ
Yes, but approval depends on your credit score, income stability, and debt level. Most banks see defaulters as high-risk, but Bluebricks works with banks that offer second-chance loans with manageable repayment terms.
It’s a loan designed for borrowers with past defaults or bad credit. These loans help consolidate debts, lower monthly payments, and rebuild financial stability. With responsible use, it can help improve your financial standing while keeping you eligible for future bank loans with favourable terms.
Defaults remain on your report for up to seven years, affecting loan approvals and interest rates. Bluebricks helps minimise the impact by assisting with debt settlements, structured repayment plans, and credit rebuilding strategies.
Banks look at:
- Credit Score – Higher scores lead to better loan terms.
- Debt Service Ratio (DSR) – Ideally below 50% of your income.
- Employment Stability – At least six months of continuous income.
It depends on:
- Your income – Higher salaries qualify for larger amounts.
- Your DSR – If your debts exceed 50% of your income, borrowing limits may be lower.
- Your credit history – Banks check if past defaults have been settled.
Bluebricks provides a realistic loan estimate within 3–5 days so you know what to expect before applying.
- Credit report (CTOS/Experian) – Shows past defaults.
- Payslips & bank statements (last 3 months) – Verifies income stability.
- EPF statement – Confirms employment.
- Debt settlement letters (if applicable) – Proves past defaults are cleared.
Bluebricks helps prepare the required documents to increase approval chances.
Rates depend on your credit score, employment status, and loan type:
- Debt consolidation loans: 3%–18% per year (depending on salary).
- Bad credit personal loans: 3%–18% per year, with structured repayment plans.
Bluebricks compares multiple banks to find the best available rates.
- 30–45 days – If you have a stable income and moderate debt.
- 45–90 days – If you have past defaults or high DSR.
Bluebricks speeds up the process by ensuring all documents are correctly prepared and matching you with banks that offer faster approvals.
If rejected, we help you:
- Identify the issue – Credit score, high DSR, or unstable income.
- Find alternatives – Some banks are more flexible with defaulters.
- Strengthen your financial profile – Improve your score and repayment capacity before reapplying.
A default can’t be removed, but you can reduce its impact by:
- Settling outstanding debts – A paid-off default looks better than an active one.
- Making consistent payments – This helps rebuild your credit score.
- Negotiating a goodwill adjustment – Some banks may remove the default after full repayment.
- Bluebricks provides credit-rebuilding strategies to help you qualify for better loans in the future.
