Debt consolidation Plan - Part 2

[hugobaby]

able to advise how long it took for ur credit rating to go from DD to AA?

6 months or so? I think

 

[VVVVVPower]

Incur more late fees and interest charges?

Is this the only way? Will it then create a dent to the application for DCP afterwards?

 

[really_noob]

Let's say if my credit card limit is 20k. Outstanding 5k, have late payment charges for the past 1 to 2 months of 3k.
Will the remaining 12k (20-5-3) limit still be available for me to use? Or will the card be suspended?

 

[amir85]

Just an update since my last post for information sharing..

My DCP bank is HSBC. I am still on DCP which will end in August 2023. I was advised by my RM back then not to close my DCP account and just pay partially [paid 50k (52.5k with interest) which brought my balance to 19k back in august or so...], so that I can get my IPA (which I did receive then). Eventually I took up home loan from DBS as they offer better rates. After I got my OTP, I sought out a broker to find the best deal. DBS was the best.

Total loan for my house 1.3mil (I ended up buying a 1.7mil condo) while I am still on DCP. For DBS, from application to letter of offer, it was quick, within 1 working day and I exercise the OTP the day after.

Currently my DCP amount is less than 1x of my current basic salary, and while I was still on DCP, I made the following application with approval.

Late last year
1) Amex Charge card (quick approval, within 2 days, and card arrived on the 4th day?) - No preset limit. I tried charging 25k on one transaction with no issues.
2) Maybank Renovation Loan 30k (Took some time, but eventually approved)

This year
3) UOB One (personal loan of 50k, just for testing, which was a quick approval as well, within 2 working days. Eventually I repurposed this loan).

Tried to applied but didn't proceed further:
Standard Chartered (Personal loan of 50k, the quoted interest rate was 8.99%, EIR was around 15+% ? Crazy!)

CBS AA rating
For the revolving credit, I was only given 5.5k back then when I applied for DCP. For 2 years I didn't use, and I didn't see a change in my CBS rating at all. It was DD all the way since I applied for DCP and I did not miss any DCP payment. I didn't use because I was scared. My total Debt ratio when I applied was 18x.

Only after I had a salary increment, change job, I applied for a limit increase and HSBC increased my revolving credit to 19k. That's when I started to use the CC and I charge around 8k - 10k every month with full payment. Finally my rating became AA. So, IMO, to work on your credit rating, you need to use your CC BUT only if you're confident if you can pay off when the bill comes. If not, be like me when I first started out where I chucked the CC aside. Hands burnt too badly, was young and a fool back then.

I don't know how the banks make their assessment, but it IS POSSIBLE while on DCP to get charge card, home loan, renovation loan, and even personal loan (This was made when my debt is below 1x). I didn't wait until I cleared my DCP.

Hi,
Can I check how did you manage to pay ur DCP partially? I am with DBS and they say I can’t make partial payment. Care to share how you manage to do it? Really appreciate your advise on this

 

[deadmeat123]

Incur more late fees and interest charges?

hi, i'm facing the same situation as well and i was planning to incur more interest and late fees until i hit the DCP criteria. having said that, Citibank has sent me a registered mail to demand payment of my due amount.

Any advice for me? what is the next course of action the bank can take?

 

[seeklightsoon]

Why don't u go for DMP by CCS?
Purposefully incurring interest to meet the min is hard earned money you have to pay off in future


What's so attractive about DCP VS DMP by CCS that u are willing to get an extra 10k of debt and interest?

Depends on the situation that the person is in:

a) If the person travels often overseas (e.g. overseas trip), DCP comes with a one-month salary credit limit credit card which will come in handy for such situation. Most hotels will require a credit card for the hotel incidental charges at check-in and may not accept debit cards. I have seen such a message at Jen hotel that debit cards cannot be used as deposit at check-in.

b) Ease of payment. For DMP, you have to pay to different banks on monthly basis and not all banks have the same due date, which then require some efforts to remember the due date of payment. For DCP, you pay to one bank and hence it simplify the payment process.

c) Approval process. For DCP you can apply to any participating FI and get approval from one of the FIs to start DCP. For DMP, you need majority of the lenders to agree to start the DMP program.

 

[deadmeat123]

Depends on the situation that the person is in:

a) If the person travels often overseas (e.g. overseas trip), DCP comes with a one-month salary credit limit credit card which will come in handy for such situation. Most hotels will require a credit card for the hotel incidental charges at check-in and may not accept debit cards. I have seen such a message at Jen hotel that debit cards cannot be used as deposit at check-in.

b) Ease of payment. For DMP, you have to pay to different banks on monthly basis and not all banks have the same due date, which then require some efforts to remember the due date of payment. For DCP, you pay to one bank and hence it simplify the payment process.

c) Approval process. For DCP you can apply to any participating FI and get approval from one of the FIs to start DCP. For DMP, you need majority of the lenders to agree to start the DMP program.

also, for DMP - record stays with your credit bureau report after it ends. trying to avoid it while dcp will be removed after 5 years? not very sure on this tho

 

[seeklightsoon]

also, for DMP - record stays with your credit bureau report after it ends. trying to avoid it while dcp will be removed after 5 years? not very sure on this tho

Both are the same. The DMP account and DCP account records will be removed three years after date of closure.

 

[Faith2Happy]

Hi Happy Mother’s Day .
I still have another 3 months to go , June , July and August . With total 60 months with SCB.
Initial amount started at 166k.
it is tough journey , I almost make it, so I think most of you here definitely can achieve your goal of clearance soon. Stay perseverance .

 

[Faith2Happy]

Monthly gross about 10K. All because my gambling habit

 

[Faith2Happy]

Actually I made another mistake to have 2 more credit cards from July 2022 with AMEX and HSBC. ( My DCP SC)
with existing card since 2018. I used up of my HSBC to 63K , and credit line up to 20K, total 83K just added last month. My Amex used up to 25 K of total 63K.
Sometimes, I think most of the time, I am so crazy and stupid.

 

[Dave25]

Wah this doesn't sound good. So now you have to DCP again?

 

[Faith2Happy]

Another 9K to settle the existing DCP of SCB. Then complete with method of loan.
For the new wave, I can settle in other way. Good luck to you and other .

 

[CrucifyMyLove]

Y do ppl choose DCP over DRS?

 

[wenguang]

Y do ppl choose DCP over DRS?

to maintain the use of existing credit facilities

 

[Dave25]

Jiayou man. Stay focused and stay away from distractions, you can do it. (I also did strayed abit during these last 4 years).

 

[Faith2Happy]

Gambling at anything, just all bad habit. Have a good day.

 

[shedthepound]

Hi, i am currently on DCP plan which i plan to redeem if that could instantly change my credit rating. Anyone knows if the rating will change back to AA instantly given that i do not owe any single cent to any bank?

 

[shedthepound]

hi, i'm facing the same situation as well and i was planning to incur more interest and late fees until i hit the DCP criteria. having said that, Citibank has sent me a registered mail to demand payment of my due amount.

Any advice for me? what is the next course of action the bank can take?

late fee and interest is something that you did not even use. i would suggest that u draw cash with credit line if you have. thought the interest is high but at least u can keep the cash and use it to pay off later.

 

[Toiletazwc]

Wah this doesn't sound good. So now you have to DCP again?



Can dcp again meh