The Trauma
When I started to have my first credit card in my early 20s, I had no idea how to manage my overall finances. In my mind, having a credit card at that time was cool since all my friends were having it & I didn’t want to have the feeling of FOMO. During that time, our petrol price was high & I was introduced by a banker to a Petronas card where I could enjoy a certain rebate when I pump petrol. The funny thing was, there were not many Petronas around my area & I could not utilize it as much as I should have. Later on, I “upgraded” to another card to increase my spending limit. I struggled to pay for both cards & I proceeded to apply for a new card along with a balance transfer.
When I had my third credit card, I was carrying additional debts from my previous 2 cards & instead of working to pay it off, I actually spent more with it. That led me to my inability to pay the debt. The bad part about paying credit card minimum payment is, that they will charge you interest for it. So instead of getting compounding interest from investments, I am getting compounding debts from my credit card.
Post Trauma
I had a period where I was too afraid to apply for credit card & I was also unable to apply due to my bad credit score. An incident in Singapore where the hotel did not accept debit cards & they only accepted credit cards. This was where I started to apply for credit card again. At that point in time, the credit card that I applied for was the most simple & basic credit card called Citi Simplicity Card. The credit card benefits & features were so basic that I am not getting any benefits from it. I was so traumatized by my previous experience that somehow I’ve been overpaying for it.
The Good Times
AirAsia credit card has somehow appeared in some ads that triggered my interest. During that time, I started to pick up my passion for traveling & that card was truly the best thing for me since I could collect AirAsia points while spending with my credit card. In fact, I have redeemed a number of subsidized & free travel over the years but it was underused during the pandemic period. This card was later canceled by the bank which is sad news for me.
Hong Leong Bank (AirAsia credit card partner) issued me a replacement card but instead of taking it, I went on to explore which is the best substitute for me & I found a better replacement for it. It has been almost a year since I changed my card to Alliance Infinite Credit Card. During this period, I have successfully redeemed 2 free access to Airport Lounges & I have also redeemed AirAsia points for my flight. Comparing both the AirAsia credit card & Alliance Infinite credit card, both have slightly different perks but both credit card benefits are definitely the best options based on my lifestyle.
Conclusion:
As per my previous post on Is Credit Card Your Best Friend or Enemy, I can conclude that it can be both depending on how well you use it. If you are not in control of your spending, it can lead you to debt but if you know how to use it wisely, you can enjoy the best perks your card can offer.
OSS!
