Debt consolidation Plan - Part 2

[Thedarkalley]

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

Hi, is your income more than 10k to get this approved limit?

thanks!

 

[hugobaby]

Hi, is your income more than 10k to get this approved limit?

thanks!

The revolving credit limit? Yes, it was more than 10k when I applied. As long as there is a significant increase in your salary, you can apply for a credit limit review. Still subject to your DCP bank review.

When I applied for DCP, my salary was 5k-ish. When I applied for credit limit review, it's more than 10. They still cap it to one month your salary.

 

[screenkit]

The revolving credit limit? Yes, it was more than 10k when I applied. As long as there is a significant increase in your salary, you can apply for a credit limit review. Still subject to your DCP bank review.

When I applied for DCP, my salary was 5k-ish. When I applied for credit limit review, it's more than 10. They still cap it to one month your salary.

Thanks for sharing.
Good motivation to all!

 

[Pricklyheat0]

Hi, good day to all.

I am trying to get some advise in this forum.
I have been trying to apply for credit card, however all unsuccessful from various banks. Realised that i am rated GX by CBS. I do not have any credit card or any outstanding with any bank. I have a stable job and my income has met all the credit card criteria. Just wondering why applications was always unsuccessful. Anyone in this forum has the same experience as me?

 

[a4973]

May I ask for balance fund transfer, can you pay off earlier to reduce the interest charge?

so let say u took up 6 months tenor BT, can you pay off early?

If 0% interest One time processing fee BT then I am sure the fee already charged upfront therefore even if you pay off sooner nothing can be saved.

 

[seeklightsoon]

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.

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.

Amazing! Now I am wondering if this will apply for customers on DMP especially for those where DMP amount is less than 1X of current basic salary, given that both the products are designed to assist customers to pay down their outstanding unsecured balances in an orderly manner.

 

[Jacelyn21]

Nope, cos if one bank reject ,another bank still can approve you, if you meet all their criteria.
Before they submit your application the cso will help you access and advise accordingly.

do we need to check back the bank on the outstanding amounts once dcp disburse the money? if 5% cannot cover the fees, what will the bank do to us?

 

[Acyyyy]

do we need to check back the bank on the outstanding amounts once dcp disburse the money? if 5% cannot cover the fees, what will the bank do to us?

If that happens, they will ask you to pay for it urself. So please make sure you and the CSO double check the total amount you applying for the DCP. You don't want to send in the application then find out you forgot to include in another cc account. They will not entertain.

 

[Jacelyn21]

If that happens, they will ask you to pay for it urself. So please make sure you and the CSO double check the total amount you applying for the DCP. You don't want to send in the application then find out you forgot to include in another cc account. They will not entertain.

oh i mean, do we need to check back on the CC banks to ask what is the last statement balance to make sure that what DCP disburse to them is sufficient to clear off?

is hsbc the easiest DCP to get approved?

 

[kimin0211]

oh i mean, do we need to check back on the CC banks to ask what is the last statement balance to make sure that what DCP disburse to them is sufficient to clear off?

is hsbc the easiest DCP to get approved?

i think so . HSBC is the only one who approved my application. All my debts are cleared except the UOB loan. What I mean is DCP helped me pay off the UOB loan, but UOB treat it as overpayment, and will be deducted monthly basis.

 

[Jacelyn21]

Hi guys,
Update on my DCP.
Finally paid off my DCP after 53 months. My DCP was 7 years [84 months] with MayBank.
Initial Debt:$126,5xx
Total Loan: $ 168,2xx
Early Repayment: $55,5xx
Penality 5%: $3,1xx
TOTAL PAID: $58,6xx

hi, will u have choosen DRS over DCP to save on the interests if u know these 2 plans initally? DRS agent told me that you can save alot for DRS and she find DRS and DCP the same.

 

[screenkit]

Anyone can share any contact for bank housing loan who can help on loan tenure after clearing dcp/dmp?
Thanks.

 

[jinsatkilife]

If 0% interest One time processing fee BT then I am sure the fee already charged upfront therefore even if you pay off sooner nothing can be saved.

now still got 0% interest BT?

i can only find processing fee+interest rate BT ...

but assuming got interest BT, then can pay off early to avoid interest charge?

edit: just realised SC got 0% interest...do u guys go to any website (singsaver, moneysmart) to aggregate which bank offer 0% interest BT etc?

 

[Ark Law]

now still got 0% interest BT?

i can only find processing fee+interest rate BT ...

but assuming got interest BT, then can pay off early to avoid interest charge?

PS. just realised SC got 0% interest...do u guys go to any website (singsaver, moneysmart) to aggregate which bank offer 0% interest BT etc?

Most banks advertise 0% interest....but with a processing fee involved. That's your interest baked in and why MAS requires banks to display EIR. Your shortest tenured "0%" BT is still a 2-3% EIR minimum

That's why your "0% BT" is still counted in your credit report as revolving credit card debt balance. Interest is still interest even though it is advertised as a processing/convenience/whatever-the-banks-wanna-call-it fee.

 

[13nc13ryan]

now still got 0% interest BT?

i can only find processing fee+interest rate BT ...

but assuming got interest BT, then can pay off early to avoid interest charge?

edit: just realised SC got 0% interest...do u guys go to any website (singsaver, moneysmart) to aggregate which bank offer 0% interest BT etc?

Yes can pay off early but i am not sure if you need to call the bank if you wanna pay off early.

btw i pm-ed you bro

 

[jinsatkilife]

Yes can pay off early but i am not sure if you need to call the bank if you wanna pay off early.

btw i pm-ed you bro

my method need skill on top of the fact that u need $ to make $

to make money, u need to risk money

really ps, each has to find their way to solve their own problem

 

[screenkit]

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.

Pm u.
Thanks.

 

[Jacelyn21]

hi, anyone manage to refinance your home loan when on DCP?

 

[VVVVVPower]

Hi,

Seeking for some experienced advice here.
Am currently looking to get into a DCP, but still about $10k off the minimum benchmark to submit an application.

Any advice on what I should do to hit the extra $10k? As I currently am not able to also get anymore loans from any other banks etc.

Thanks

 

[a4973]

Hi,

Seeking for some experienced advice here.
Am currently looking to get into a DCP, but still about $10k off the minimum benchmark to submit an application.

Any advice on what I should do to hit the extra $10k? As I currently am not able to also get anymore loans from any other banks etc.

Thanks

Incur more late fees and interest charges?