Why should I get a credit card in the first place? This inquiry has been on the minds of many individuals since they’ve started getting a hold of a sufficient amount of income. Know that credit cards are a convenient little piece of plastic that allows you to pay for that flight or that designer handbag without slashing off a huge chunk off of your savings right from the get-go.
Credit cards allow you to effectively borrow money from a banking or financial institution and allows you pay for an item or service through multiple payments. When used unwisely, it can turn into piles of debt that’s difficult to get out. On the other hand, use it wisely, and you got yourself a convenient way of getting the things you need or want without having to worry too much about your hard-earned cash in your bank account.
The Convenience of Using Credit Cards
Aside from letting you take advantage of staggered payments, using a credit card means you can take advantage of cashless transactions. Imagine this scenario – there’s a sale going on in one of your favorite online retail shops, but you only have cold hard cash in your wallet. You can’t throw money onto your computer screen hoping that the cash will get through to the shop somehow. Another scenario is when you might suddenly lose your wallet; if you have paper bills inside your wallet, then consider the money as good as gone. However, if the only things in your wallet at the time when it got lost are a few pieces of identification and a couple of credit cards, then it’s easier to replace those cards as opposed to trying to get back the money that might’ve been lost in the process.
Am I Eligible to Get a Credit Card?
You need to pass some requirements first before you can successfully apply for a credit card. The bank will look into your age, employment status, salary, and other pieces of important information. Most credit card companies require you to be a minimum of 21 years old before you can start applying for the card. However, there are some banks that do accept people as low as 18 years old to qualify for the application. Also, you need to have a salary level of at least RM24,000 per year to apply for the basic credit cards. If you want to go for the high-end plastics, then you need to have an annual income of about RM150,000 to get the most worthy malaysia credit card installment plan.
Are There Different Types of Credit Cards?
A financial institution or credit card provider in Malaysia tends to offer four to 13 types of credit cards. Each credit card offering caters to different customers depending on several factors such as points of interest and annual income. One good way to look at the right type of credit card is to check out the reward system. These rewards will come in multiple forms such as cashback, air miles, and a point system. Nonetheless, all credit card types can be boiled down into five major categories which are the following: cashback, air miles, points, business, and co-branded.
What are the Credit Card Features I need to Know?
Perhaps all credit cards have a feature that allows instant access to cash for all holders. Credit card holders can either pay for their transactions in full or in installments. However, banks and credit card providers also offer different features for their customers. For instance, some credit card companies like to waive some or all membership fees on their cards. There are also some credit cards that allow bonus airline points when used for local or overseas purchases.
Keep in mind that the credit card fees and charges depend on the type of card and other factors. However, the charges are between 15% to 18% per year, and you need to pay this by the end of a particular billing period.