Many years back I recalled when I applied for Credit Card, I have no idea on which Credit Card to apply & what are the fees or hidden fees of each card. I have no idea on the Credit Card benefits too. All I did was going to the bank & informing them that I wanted to apply a Credit Card. I just proceed with whatever card they offered. I guess some of you might be doing the same thing or maybe its just me alone. LOL.
My another bad experience was I had total 3 cards & accumulated debt of almost RM30,000 which I’ve struggled to pay it off for years & after those agonized pain & suffering, I finally settled my credit card debt.
Not joking. That is how I actually felt after I cleared my Credit Card Debt. Anyway, it’s just to share with you on my experience with Credit Card & my past debt experience. 🙂
Ask yourself. What are the benefits you seek in your Credit Card? Below are some of the tips that might help you to Select the Best Credit Card to Suit your Needs & Lifestyle.
1. Look At Your Spending Habits
What do you usually spend your money on? This factor will play an important role for you to select the credit card that will suit your needs & lifestyle. If you mainly use your card to pump petrol you may want to consider petrol rebate cards.
2. What are Fees, Interest & Penalty?
Bare in mind, not all cards have the same fees, interest & penalty. It is important to know which card you select as some may have high Annual Fees or high Interest. Some may even charge high Penalty for late payment.
3. What Are The Benefits?
Some cards allow you to collect Points while you spend & you can use those accumulative Points to redeem gift. You may want to maximize your spending but make sure you pay your card accordingly. Another example is if you are a frequent traveler, you may want to consider Travel Miles Card that enables you to earn Travel Points while enjoying your time at Premium Lounge.
Bonus : Balance Transfer
If you are considering to transfer your old Credit Card balance to new Credit Card. Some banks are able to offer 0% Balance Transfer.
Lets look at types of Credit Card that might suit your needs :
1. Petrol Credit Cards
2. Cash Back Credit Card
3. Travel Credit Card
4. Point Redemption Credit Card
5. Shopping Credit Card
Now you may have a rough idea on which Credit Card that might suit your Needs & Lifestyle. What else to look into?
Some Credit Cards might offer Insurance Coverage for Travelling & Personal Accident. That may be a plus point if the credit card offers such package to you. Some other package you may want to look into is Easy Payment Plan with Low Interest. Another value added service that you can look into is on their Mobile App. Since Im using Citibank Simplicity Card at the moment, I find their Mobile App to be user friendly compare to other Credit Card Mobile App.
With all those benefits to their user, those bank may have some additional charges or higher interest. You may want to look into their Annual Fee or their Interest before you apply your Credit Card.
Credit Card may be bad to some of you if you dont control your spending. Do pay what you spend to avoid high interest fee. Credit Card are meant to make your life easy especially for those who prefer not to carry huge amount of cash. It is not meant to be spend as future money especially towards your compulsive buying. This will put you in debt & affect your credit score. One more thing to remind all of you is with the implementation of SST, you will be charged RM25 per annum for Sales & Service Tax.
You can refer my Recommended Link for the Best Financial Comparison Website in Malaysia to find the best Credit Card to suit your Needs & Lifestyle.