Problem With Loan Despite Debts Is Clear

[ilovepolkadots 2]

Hi,

I will like to seek advice for you guys here.

I have applied for Housing Loan with one local bank but Credit Bureau check failed...

I have a credit card outstanding amount of 30K+ over last 2 years and fully settled in January this year.

May i know what can i do?

Contact credit bureau?

I am in wit's end as i am going for my flat selection with HDB this month and afraid that i am unable to take up any loan and forfeit my chances...

My husband has a good and clear credit history.

I am the one with the problem, please help as i dont wish to lose my flat....

Thank you

[albertchng 0]

Hi,

I will like to seek advice for you guys here.

I have applied for Housing Loan with one local bank but Credit Bureau check failed...

I have a credit card outstanding amount of 30K+ over last 2 years and fully settled in January this year.

May i know what can i do?

Contact credit bureau?

I am in wit's end as i am going for my flat selection with HDB this month and afraid that i am unable to take up any loan and forfeit my chances...

My husband has a good and clear credit history.

I am the one with the problem, please help as i dont wish to lose my flat....

Thank you

You should contact your bank. You ask here no one can help or advice you further.

[Xanana 0]

since your hubby has a good record, you should NOT have any problems.

contact your bank to get that record erased

Edited March 2, 2012 by Xanana

[DingDong 0]

from what i heard..but sure how true though.

even if u clear ur debts.. it will take a yr to be purely clean.

ie : ur credit rating will be good only next yr.

ur hubby record clear..so shld not be too big an issue.

[therat 18]

How much u need to loan and how much the bank can loan you?

[forgotten 1]

You can view your credit rating report from Credit Bureau Singapore at $5.35.

http://www.creditbur...ort&partner=CBS

The bad credit rating will stay for 3 years in Credit Bureau Singapore even after one repays the debt in full. There is no way of erasing the bad credit rating.

Your hubby can put himself as sole-owner of the HDB flat and you as co-occupier, and applied for bank loans using his name only. The bank loan application will be likely approved if he has enough income.

Take note that if you do this, only your hubby (sole owner) 's CPF can be used to pay for the downpayment, monthly bank loan instalments etc.

[bepgof 20]

OMG!

Presently interest rate in singapore=24% pa. Don't be kena conned! The interest rate is DAILY compounded! Don't understand? Let me show you the maths:

Formular:

FV=PV(1+r)to the power of "n"

FV=future value = 30,000

PV=present value = ???

r= interest rate = 24% = 0.24/365 (cos daily compounded)

n= 2 x 365 = 730

30000=PV(1+0.000657)to the power of 730

PV= $18,573.7

This means 2 yrs ago, you only owe bank $18,573. Now, 2 yrs later, u need to pay $30,000

Clear? Licensed AH Long!

[kalimantan 6]

very good explanation.

Not many people can explain in layman term using the formula.

People who borrow now understand what is called "compound"

Similarly many people also don't understand the time exponential of investment. they thought that investment can wait first, and delay later later later until realized : aiya i should have invest in the younger days !

i have many friends prefer to do share contra, but it is rather a short-term view or strategy to make-ends meet. Recently met a 45 year old buddy, he told me he contra make $300 ...he sounds so happy. But i know this is not the way. There isn't a long term plan. Investments over long term takes discipline and is painful that step-by-step takes. Contra is different - you win or lose over x days.

For me i start buying unit trusts for my children and they can make use of time to generate more.

Edited March 4, 2012 by kalimantan

[bepgof 20]

Take this opportunity to highlight a few facts w.r.t "interest" from finance perspective, believed many layman not aware:

1. Credit card, 24% p.a, interest is DAILY compounding. The p.a = per annuum, is very misleading. It is actually the "nominal rate".

2. Saving account, 1% p.a., interest is actually MONTHLY compounding. Again, misleading.....

3. FD, 2% p.a, interest is YEARLY compounding. This is CORRECT. The interest will be added after a period of one year.

So, to deal with these: daily, monthly, semi-yearly compounding interest methology, one need to "convert" them to "effective interest rate". The one uses in FD application, so allow an individual to make comparison of "interests" that have been bought to the "same base", so to make wise decision. But banks always like to confuse layman.

Formular:

Eff Rate = 1-[1+ (r/m)]to the power of m.

r= nominal interest rate, other than yearly compounding, eg credit card = 24%=0.24, saving = 1%=0.01.....

m=the number of compounding period, eg daily=365, monthly=12, semi-annual = 6....

Examples:

1. Credit card: eff rate = 1-[1+(0.24/365)] to the power of 365 = 0.2711 = 27.11% pa compound annually

Previously examply: 1st yr: $18573.7 x (1+ 0.2711)= $23609

2nd yr: $23,609 x (1+0.2711) = $30,009!

2. Saving: Eff rate = 1-[1+(0.01/12)] to the power of 12 = 0.01004 = 1.004% p.a compound annually

3. FD : Eff rate remain at 2%p.a compound annually.

Clear?

Edited March 5, 2012 by bepgof

[kalimantan 6]

another finance guru there ...

i think most people understand the fixed deposit rate, 2%, so that they they can extra 2% after one year.

But if u ask people to invest outside of fixed deposit rate, they always ask "how much can earn" ...i always tell them your money must earn above risk-free rate.

No need to explain risk-free rate to them, just tell them minimium must beat cpf oa account - which is 2.5% risk-free. That means it is better off putting money in cpf oa than keep in fixed deposit. (of course there are pros / cons - but i am purely looking at interest rate only).

So if insurance agents tell you can earn 4%, tell them no need, because if you put money in cpf special account, you confirm guarantee win 4% without any risks. So why take un-necessary risk when insurance cannot gurantee 4% ? Sometimes the proposal agents gave are misleading ...

From the above examples, everyone should now know what is "risk-free".

[Xanana 0]

You can view your credit rating report from Credit Bureau Singapore at $5.35.

http://www.creditbur...ort&partner=CBS

The bad credit rating will stay for 3 years in Credit Bureau Singapore even after one repays the debt in full. There is no way of erasing the bad credit rating.

Your hubby can put himself as sole-owner of the HDB flat and you as co-occupier, and applied for bank loans using his name only. The bank loan application will be likely approved if he has enough income.

Take note that if you do this, only your hubby (sole owner) 's CPF can be used to pay for the downpayment, monthly bank loan instalments etc.

And also take note that in future, if there any "unforeseen" circumstances (**** it... let me say it out, DIVORCE)

every thing goes BACK to the account, including profits etc.

I have a friend, whose wife took 90% of the share in the condo. he just got kicked out and left with NOTHING.

Literally nothing. His Audi was sold off, cos it was under her name as well (they have 4 cars), since every thing

was under her name, she took EVERYTHING. Poor bugger ...

[pipapoo 0]

Edited March 19, 2012 by pipapoo

[Jenova 0]

And also take note that in future, if there any "unforeseen" circumstances (**** it... let me say it out, DIVORCE)

every thing goes BACK to the account, including profits etc.

I have a friend, whose wife took 90% of the share in the condo. he just got kicked out and left with NOTHING.

Literally nothing. His Audi was sold off, cos it was under her name as well (they have 4 cars), since every thing

was under her name, she took EVERYTHING. Poor bugger ...

the most important thing is, your husband income. can he support the loan himself? simple calculation,

currently monthly liabilites, eg car loan, cash loan + loan monthly repayment / monthly income must not be above or more than 40%.

if not get a relative/friend whom qualifies the above to gaurantee the loan. tell your relative to tahun 3yrs. after that refi the loan out to other banks and he will be released as the gaurantor. but of course ppl help you dont harm ppl lah.

now which bank you should approach. try ocbc as their mortgage bankers have monthly hdb targets to meet. so they are more desperate for hdb loan. imagine doing 20m but no hdb no com. they will try theri best to appeal through.

next time dont anyhow spend. as long as you have overdues, late payments, partial payments or minimum payments or structure payments. you are considered undesirable aka smelly leg. be it the amount owing only few k and your income is full hundred k also dont help. as in credit rating, this reflects on your character. small amount like this, imagine big amount how to pay.

[Kunal 0]

https://t.me/pump_upp - best crypto pumps on telegram
Make 1000% and more within 1 day, join channel @pump_upp !

[sgrarmae 0]

https://t.me/pump_upp - best crypto pumps on telegram
Make 1000% and more within 1 day, join channel @pump_upp !