A Credit History report is a scorecard based on your previous and existing loans. You can check your own report at any Credit Reporting Agency in Malaysia.
Ensure that the information in your report is up to date and without any mistakes. If your report shows that you have missing or late loan payments, it will badly affect your application. However, if your report shows that you have previously completely settled loans, your application will look good to your loan provider.
Any loan provider that you apply to will want to know that you have a constant source of income to pay off your instalments.
Emphasis will be given to jobs that provide Employee Provident Fund (EPF) contributions as these are likely to be stable employment. Keep all your monthly payslips and other records of income for documentary proof during your application.
Loan providers prefer if their customers do not default even if the maximum loan amount has increased due to late charges. This is because the recovery of even the principal amount becomes difficult.
Placing additional down payment, collateral or having a guarantor would show your sincerity in paying off the loan in one hand, and the loan provider would be relieved that they do not stand to lose as much if you default in the other.
