How To Get Your First Car Loan Without Guarantor?
A lot of Malaysian failed to get their first hire purchase loan approval without a guarantor, why?
Before we talk about how to get approval, let's talk about why it failed. Number one reason that why a person would failed to get approval is because of clear CCRIS record, a clean paper without a good payment record is very hard to get any type of loan. No track record simply said no trust from bank, and no trust mean high risk. Banking loan is always about risk management, the higher the risk the lesser they will approve your loan, we will explain this later in the article.
Secondly, age factor, why? Too young 18 years old certain bank don't accept loan application (21 years old and above normally accepted by all banks), however they do bank accept your application but it will look into what are you working as and how much your salary is. However even if your age is 30's but if you don't have any CCRIS record as mentioned above, bank still don't approve your car loan easily without a guarantor. This is because too old, no commitment at all, suspicious by the bank.
Next the bank will check the company that you're working at whether the size of the company is big, paid up capital, sole proprietorship, partnership, Sdn. Bhd. or International company all are deeply affected how bank evaluate their customer risk profile.
Of course your income is the main concern from the bank to see how much loan they can approve after if they saw your CCRIS record were good. There are few types of income for bank to justify such as Fixed Salary, Fixed Allowance, Incentives, Commission, Overtime and Bonus. To be honest bank don't see how much your Bonus is but mainly focus on your basic salary and fixed allowance, as for commission and overtime bank only take half of the amount from the average 6 months. For example your basic salary RM2,000, fixed allowance RM300, average commission RM1000 and your income will be taken as RM2,800.
Above 4 factors are why bank don't give your car loan approval without a guarantor. All the factors above are actually your risk profile and how bank evaluate their customer by scoring. No CCRIS, young age, small company and small income leads to a higher risk profile so in order to get your loan approval without a guarantor, let me explain further below.
Start Your Very First Commitment
When you first go to work, for at least 3 months, try yourself to get your very first credit card. Well its not asking you to spend it heavily but just use it like for petrol and paying it back every time you used it. This will create your very FIRST CCRIS RECORD, for at least 6 months and you'll seen as good payment record.
Work At Least A Sdn. Bhd. Company
The size of your company deeply affect your risk profile so definitely your position in the company as well. If you're a contract staff, not much bank would accept your car loan application as once your contract end, bank will question that how you get your money to pay the monthly installment?
The answers are just that simple, above 2 factors are very important in applying your car loan application. So next time before even you walk in to showroom and ask the sales advisor for an advice, you already know how to get your car loan approval without a guarantor. Good Luck!
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