Buying a car is a big decision. Whether you are buying a used or new car, one of the factors that need to be considered prior to driving the car home is the loan. However, not everyone has a good credit record when it comes to applying for a loan which will then determine if the bank is ready to extend the facility to you.
So if you have a bad credit record, can you still apply for a loan? In Malaysia, the situation can be quite tricky. For people who have been declared bankrupt, they will not be eligible to apply for any more loans.
However, for those who are in debt restriction process like the Debt Management Programme from AKPK, they will be treated on a case by case basis. Whether or not you can get the loan approved is up to the bank but the chances are very slim.
Meanwhile, those with imperfect credit scores would need to put in some extra effort and if that is all done well, there should be no problem getting the loan approved.
The first document you need is an income statement. Prepare 6 months of your income statement which includes your pay slip because that is the most fundamental information the bank needs. In knowing that you have a stable job and income, that would help a lot.
Secondly, try to obtain a letter from your current employer. The longer you have been employed in this company, the better it will be. This letter will state the date you started working there and if possible, the progression you have gone through in terms of promotion and increment of salary. If your employer can put in a good word or two, it will be much better.
Then prepare documents that can support your mailing and residential address. In most cases, use the telephone or electricity bill which will show that you are willing to be contacted if you default any payment and that you can still afford to maintain the car.
Then check your credit score with Bank Negara through the CCRIS. Maybe it isn’t as bad as you thought it was. If you are buying a used car, the dealer might trap you into taking a loan with super high interest due to your so-called bad credit.
After that, calculate how much you can afford every month and work backwards. This will give you a clear picture of what to expect in the amount you should apply.