If you are a first-time borrower, apprehension is normal since you are unsure whether your credit application will be approved or rejected. Banks and other lending institutions follow certain parameters or guidelines before a loan is granted. Thankfully, taking up loans in Malaysia is also possible for first-timers.
Big banks do not discriminate first-time borrowers. If you have not secured a loan before, it does not mean creditors will not lend to you for lack of credit history. For as long as you have the capacity and pre-qualified to take on a loan, you are likely to be approved on your first loan application.
Expect wondrous things to happen to you once you have taken up your first loan. You will discover a lot of beneficial loan packages which you can prepare for the future.
5 Things That Happen to You After Taking Up Your First Loan
- Boosted Confidence
Your anxiety is immediately gone once your first loan is granted. You started with uncertainty but end up with increased confidence. There is nothing like being trusted by a lending institution with limited or no credit history.
- Credit Worthiness
When the bank approved your first loan, it means you are viewed as a creditworthy individual. You have fulfilled the three ‘C’s of credit: character, capital, and capacity.
- Opportunity to Build Credit History
Your first loan is an excellent opportunity to start building your credit history. Make sure your payments are on time and up to date. Your personal credit rating will depend on how you are reliable in making payments on due dates and without delay.
- Need to Maintain Good Credit Standing
As you build a good credit standing, applying for loans with other banks and lending institutions will never be a problem. Creditors perform cross-credit checking, that is why it is important to maintain a good credit reputation. You can bring your credit anywhere and be assured of favorable action on your credit applications.
- Possibility to Discover Other Financing Products
A host of personal loan products is available to the credit-worthy borrower. You can make use of your good credit standing in taking loans for specific purposes: educational, home and property loans, refinancing and others.
The challenge for you as a first-time loan-taker is always securing that elusive credit approval. It’s a no mean feat by any standards. The first time may be a hurdle, but the following ones will be a breeze. That is assuming, of course, your credit history from the first is excellent.