5 Ways To Easily Secure A Loan For Your Renovation
What makes a house a home is its liveability and comfort. Instead of worrying about coughing out cash to design your place, why not enjoy the experience the process of designing your first home in a more joyful state of mind - by securing a renovation loan and get renovation help from Qanvast?
Many banks now offer personal loans specifically for home renovation and you can take a loan for less than RM50,000 to start renovating your dream home! Here are 5 tips on how to make securing that renovation loan easier than you think it would be.
The road to loan approval
One of the most overlooked aspects of financing is the credit score, which may greatly affect the likelihood of your loan approval. Prior to your loan application, we recommend to review your credit report first to make sure your financial background is credible.
CTOS Malaysia, for example, provides actual scale of credit ratings from 300 to 850 (with 300 being the worst score) and the higher you score, the better your chances in the loan approval.
Here are some foolproof ways to build up your credit score over time.
1. Pay your bills on time
Payment history plays an important role in your credit report. Not only does it show how reliable you are to the banks but also increases your capability of debt settlement.
2. Show yourself as a credible character
Who would you trust more if you were to lend someone money - a job-hopper or a senior professional? The answer is obvious. So it’s only natural to build up your career as a steady move to improve your credit score.
3. Be mindful of your debt
Debt is your enemy in the financial battlefield. Instead of chalking up loans to pay for your expenses, monitor your spending habits instead and eliminate unnecessary purchases.
4. Don’t overlook your personal information
If you own multiple credit cards, make sure your home address you provide to every bank is the same. It may seem minor but the fact that moving homes too often could also lower your credit score!
5. No credit history? Create one!
Having no credit history is just next to having a bad credit score. As banks cannot see any record of your financial capability, you may appear to be an unreliable credit applicant although that may not be the case.
Don’t let a bad credit report affect your chances of getting a loan, not just for home improvement but also for other investments like education or home purchase. Simply follow the aforementioned guide to build up your credit score effectively.
Score a renovation for RM50,000
Congratulations on getting your loan approved! Now it’s time to sit down and plan your home renovation. There are some certain rules that you should take into account based on the set budget of RM 50,000.
1. Less is more
If you are an artist at heart, chances are you have already heard about going minimalistic. The home aesthetic trend basically means fewer details on the outlook and more functional spaces around the house. The same goes to interior design, having multi-purpose furniture is ideal.
2. Avoid major structural work unless necessary
A typical renovation project would involve thorough structural work, and it may cost you more than RM50,000. As long as your property is still in good condition, you should keep the floor plan as it is and only make changes on the outlook.
If you wish to expand a certain room, simply clean out the clutters, replace the partition wall with a large bookcase for example and you’ll find your entire house way more spacious.
3. Let the professionals help you out
For a more efficient renovating process, it is best to leave it to the hands of experts. Whether you already know how you would like your new home to look like or still searching for an inspiration, home professionals will get it done for you.
Finding a trusted company to take care of your home improvement plan is now made simple with Qanvast. You will be able to search and select from a list of professionals around your area, all in one place.
Looking to apply for a personal loan? Or just want to find and compare which banks have the best interest rates in Malaysia? Visit CompareHero.my and discover which bank has the best deal for you to turn your dream home into a reality today!Image credit: X Dimension, Signature Kitchen, Urban Home Interior, GI Design, Design Integra, Space Matrix