Is credit card your best friend or enemy? It is a common debate that many people have as some may find credit cards to be bad while some actually think that it can be your best friend when used well. Whether it is good or evil, it provides you with the same function where you can use it to pay for something in advance within your credit card limit.
My personal experience with credit cards started off on the wrong foot. I remembered getting my first credit card a year after I started to work. The advice that I have gotten from my surrounding was to always pay the full amount & always pay on time. Do not pay the minimum payment for credit cards as the interest rate will be compounded & you will end up paying more than your total spending. That advice is so simple but somehow, I failed to do it. I ended up maximising my first credit card & paying minimum fees. I even went to the extent of going to the bank to request a credit limit increase. Instead of getting a higher credit limit, I was persuaded by the bank officer to apply for a new card. Not sure if that officer did it to earn a commission for a new card application or I was unable to increase my limit for my existing card. I ended up with 2 cards under the same bank. Later on, I did a balance transfer of my first credit card debt to my new credit card.
As I had very little control over my spending back then, I ended up maximising my second credit card which resulted in me applying for my third credit card. That decision was made because of the higher credit limit offered on my third card & also I was able to do a balance transfer over with zero interest. I ended owing to the bank RM15,000 on credit card alone to which I struggled to pay primarily due to my poor financial planning. You can check out my previous post on What I Did To Pay Off My Debt to have a more detailed story on how I managed to get out of debt.
I remembered attempting to apply for a new card years later but I got rejected by a few banks due to my bad credit score history. Later on, I managed to apply for a Citibank Simplicity card which I am still currently using to this day. On my Podcast with my mentor, we did have a discussion on credit cards & he spoke on how credit card can be your best friend while I was sharing more on the other end of the spectrum. At first, I did not get his point but ever since I started to upgrade my credit card from Citibank Simplicity to Hong Leong Air Asia card, I realised how it can be used to my advantage. To date, I have over 80,000 Big Points & I even managed to redeem a return flight to Vietnam. However, with the ongoing pandemic, my Big Points have been underutilised.
To be honest, my view on credit card has gradually changed over the years. From seeing it as an enemy to utilising it to my benefit. My credit card payment is not only on time but I am also tracking it using my expenses app to make sure I don’t miss any payment. Comparing to my previous spending on credit card vs now, I am in control of my spending where I only spend money on what I can afford. I am also utilising my spending on my credit card to collect Big Points so I can redeem more free flights in the future.
Each credit card has different features & benefits. My preferred credit card is a travelling credit card where I can collect points to redeem free flights. Some people prefer to have a cashback credit card where they can earn cashback from their spending. Since everyone has a different preference for credit cards, I have collaborated with CompareHero to propose 3 different credit cards where you can check out.
Lazada Citi Platinum Card
Types Of Card: Cashback
Minimum Monthly Income: RM2,000
Interest Rate: 15%
Annual Fee: RM100
Pros:
-10x Citi Rewards Points for Lazada
-5x Citi Rewards Points for online & shopping lifestyle
-1000 Citi Rewards Points with min. RM1,500 spending a month
-Offset Lazada spending with Citi Rewards Points
-3 Years Annual Fee Waiver
Cons:
-10x Citi Rewards Points is capped at a maximum of RM500 per statement per month
HSBC Amanah MPower Visa Platinum Credit Card-i
Types Of Card: Cashback
Minimum Monthly Income: RM3,000
Interest Rate: 15%
Annual Fee: RM240 (Waived when you swipe 12x a year)
Pros:
-8% Cashback for Petrol, Groceries & E-Wallet
-0.2% Cashback for other spending
-1% Contribution on Charity Spend
Cons:
-Minimum RM2,000 spending to earn 8% Cashback
-Monthly Cashback capped at RM15
Standard Chartered JustOne Platinum Mastercard
Types Of Card: Cashback
Minimum Monthly Income: RM3,000
Interest Rate: 15%
Annual Fee: RM250
Pros:
-15% Cashback on online purchase, autobill payment & petrol
-0.2% Cashback for other spending
-E-commerce purchase protection up to USD200 when you shop online
-First year annual fee waiver
Cons:
-Cashback for online purchase, autobill & petrol capped at RM20 per month for each spending
-Maximum cashback is capped at RM60 per month
There is also free gift awaiting you once you successfully apply for each credit card. Click on your preferred card link to apply for the best credit card that suits you best.
OSS!
You can also check out my latest YouTube video on Best Credit Card In Malaysia During The Pandemic:
