Debt consolidation Plan

[Happydappy]

hi all,
my credit score is AA and do not have any credit card outstanding payments and only personal loan and line of credit, which i pay the outstanding amount every month. iam paying around 2k per month and i want to reduce it by going to DCP.

my question is, if i opt for DCP, am i still paying interests to the existing loans and as well to DCP, or DCP will clear all my loans + early closure charges for the existing loans ( thus saving from paying the interest for the remaining perios for my exixting loans).

2nd point correct.

 

[Ravis1]

Hi guys,

New here. And in need of advise, applied DBS,UOB,Hsbc. All got rejected. Any bank to recommend for HH scoring?

Score 1665
BTI 14.5x

 

[Beenthere]

I’m waiting to hear from Maybank. My employer had to restructure and I suffered a drop in salary since March and I now “qualify”. I finally submitted my payslip yesterday and am waiting to hear from them. I hope it’s approved.

Got rejected in the end ;_;

 

[Happydappy]

Got rejected in the end ;_;

Sorry to hear this, try other banks,or get Maybank to appeal.

 

[Beenthere]

Sorry to hear this, try other banks,or get Maybank to appeal.

The guy said they didn’t give the reason why. Previously he did say say that while my credit rating is good, there was a chance of me not getting approval because if they used the average of my NOA from 2018 (notwithstanding the fact that I now have a lower salary (employer’s letter and current payslip to support the lower pay), there’s a chance I won’t qualify.

I was told I could apply again in May 2019.

I might apply to another bank. But I don’t know if this will cause a drop in my credit rating if I apply for a fresh credit bureau report because the one I submitted was purchased in February 2019.

 

[Smiliez0!]

Hello All,

I am new here.
Thank you All for all your valuable inputs. I just wanted to check if any overdraft will affect the DCP loan application as i submitted documents to DBS and the CSO said due to the overdraft in DBS she cant submit documents because it will be rejected and said woould be best i pay off tge overdraft amount and even after still subj to approval

Can any of you bros advise me?

Thank you in advance

 

[hclee01]

Hello All,

I am new here.
Thank you All for all your valuable inputs. I just wanted to check if any overdraft will affect the DCP loan application as i submitted documents to DBS and the CSO said due to the overdraft in DBS she cant submit documents because it will be rejected and said woould be best i pay off tge overdraft amount and even after still subj to approval

Can any of you bros advise me?

Thank you in advance

Overdraft facility should not affect your DCP loan as this will be consolidated together with your credit card outstanding once DCP is approved.

Is your overdraft facility over the credit limit? (Example, the credit limit is $5K and your outstanding is $6K?) If your outstanding balance is above your approved limit, some banks may not view this favourably and you may wish to pay off the excess to within approved limit.

If it is not over the credit limit, it should not affect your DCP application generally.

 

[Smiliez0!]

Overdraft facility should not affect your DCP loan as this will be consolidated together with your credit card outstanding once DCP is approved.

Is your overdraft facility over the credit limit? (Example, the credit limit is $5K and your outstanding is $6K?) If your outstanding balance is above your approved limit, some banks may not view this favourably and you may wish to pay off the excess to within approved limit.

If it is not over the credit limit, it should not affect your DCP application generally.

Thank you for your reply..Yes its over limit by extra 4000 ..is paying off the amount the only option ?

 

[Beenthere]

Thank you for your reply..Yes its over limit by extra 4000 ..is paying off the amount the only option ?

It does seem like it. The banks will most likely see that as you being able and sincere in paying your debts.

 

[hclee01]

Thank you for your reply..Yes its over limit by extra 4000 ..is paying off the amount the only option ?

Generally for accounts that are overdue and/or overlimit, banks may not view this favourably. Especially for accounts that are overlimit (as in your case of $4000), the min amount will include the overlimit amount and 3% of the total outstanding. If you are not able to pay this amount, your account will become overdue and banks may be less willing to extend DCP.

If you really face genuine difficulties in repaying this $4000 overlimit, DMP may be something you may wish to consider. Alternatively, if you are able to get another loan from another bank to cover this $4K overlimit and then re-apply DCP again.

Best of luck.

 

[Smiliez0!]

Generally for accounts that are overdue and/or overlimit, banks may not view this favourably. Especially for accounts that are overlimit (as in your case of $4000), the min amount will include the overlimit amount and 3% of the total outstanding. If you are not able to pay this amount, your account will become overdue and banks may be less willing to extend DCP.

If you really face genuine difficulties in repaying this $4000 overlimit, DMP may be something you may wish to consider. Alternatively, if you are able to get another loan from another bank to cover this $4K overlimit and then re-apply DCP again.

Best of luck.

Thank you Bro

 

[amir85]

Hi all, i just got into a masters prog in a local university. Been on DCP since last sept. Was wondering if there is a chance if i apply for education loan, it will be approved? Has anyone applied before and it was successful? Please do tell me. Hope to hear from you guys.

 

[lastweektonight]

Query on dcp

Hi all, im new here.

I have been on DCP for a few months now. And recently my wife wamts to sell our hdb to purchase a condo. Im wondering if DCP will affect our bank loan request? (Till now i haven tell my wife im in DCP)

Also recently i resd dbs DCP is much lower interest would it make sense to refinance my DCP? Currently takimg citibank DCP.

TIA

 

[Jojodespo]

Hi bro, I don’t think education loan is applicable for a masters programme anyway.. I asked before. Since masters is a post grad study, it’s not applicable for edu loans.

Hi all, i just got into a masters prog in a local university. Been on DCP since last sept. Was wondering if there is a chance if i apply for education loan, it will be approved? Has anyone applied before and it was successful? Please do tell me. Hope to hear from you guys.

 

[Happydappy]

Hi all, im new here.

I have been on DCP for a few months now. And recently my wife wamts to sell our hdb to purchase a condo. Im wondering if DCP will affect our bank loan request? (Till now i haven tell my wife im in DCP)

Also recently i resd dbs DCP is much lower interest would it make sense to refinance my DCP? Currently takimg citibank DCP.

TIA

Hey, makes sense to refinance with DBS, check if they will give rebate to cover any costs to early terminate DCP with Citibank. By the way, I came clean with my spouse on my DCP and it is a huge relief and to have full support. Also, Why not pay down the DCP instead of using it as down payment for condo?

 

[lastweektonight]

Hey, makes sense to refinance with DBS, check if they will give rebate to cover any costs to early terminate DCP with Citibank. By the way, I came clean with my spouse on my DCP and it is a huge relief and to have full support. Also, Why not pay down the DCP instead of using it as down payment for condo?

Actually im really worried what my spouse will say. Cuz for now, i didnt want to make my problem her problem.

But having a dcp wont affect our bank loan right?

 

[iamnotlame]

Hi all, i just got into a masters prog in a local university. Been on DCP since last sept. Was wondering if there is a chance if i apply for education loan, it will be approved? Has anyone applied before and it was successful? Please do tell me. Hope to hear from you guys.

If you have available amount in your CPF ordinary account, why not use that for your master's education instead of gettimg additional loan?

 

[iamnotlame]

Actually im really worried what my spouse will say. Cuz for now, i didnt want to make my problem her problem.

But having a dcp wont affect our bank loan right?

Bad news does not age well so what are you worried about telling your spouse about your existing DCP? Are you worried about getting scolded or getting an earful for being in such a situation? Even if you do not tell her now, your problem is already her probably albeit unknown for that matter.

Would you think that at the time of application for the condo loan, your DCP will not come up? Would you rather tell her now than to be exposed in a more difficult situation? You just have to accept the consequence of your past actions, it is difficult and ego-bruising but is liberating.

Goodluck!

 

[Beenthere]

Actually im really worried what my spouse will say. Cuz for now, i didnt want to make my problem her problem.

But having a dcp wont affect our bank loan right?

Being on DCP may affect your TDSR when you are applying for a housing loan. If you can’t get a housing loan, you will not have sufficient funds to finance your property purchase.

 

[hclee01]

Actually im really worried what my spouse will say. Cuz for now, i didnt want to make my problem her problem.

But having a dcp wont affect our bank loan right?

You may wish to take note that for new property loan, borrowers will be subjected to Total Debt Servicing Ratio ("TDSR") requirements set by MAS. As such, the monthly repayment amount towards the DCP will be taken into the computation for TDSR. Borrowers will need to satisfy the requirements before bank can approve the loan (subject to their internal credit policy).

You can find out more about TSDR in various websites:

https://blog.moneysmart.sg/home-loans/total-debt-servicing-ratio-tdsr-loans/

https://forms.uob.com.sg/property/c...rl&i_cid=TDSR_evergreen_201810_Sales&vid=none

Hope this helps.