General Info : Credit Cards

What is credit card? There many types of retails cards out there offers by card issuer. Credit cards, charge cards, debit cards and prepaid cards. For now, let me cover on credit card first.

Credit card is a type of unsecured loan. Without needing any initial deposit from the customer, bank offer limited loan to customer in a form of a plastic card. Customer can used the card to pay for purchases or services without having to pay using true money. The credit card issuer will pay the merchant on your behalf and charge us the amount later through its monthly statement.

To ensure that the credit cards is accepted with the best coverage, all credit cards will either be supported through chain of Visa, Mastercard, American Express or Diner's Club.

Credit cards also largely accepted for online transaction allowing for more diverse use of the cards (giving you more ways to spend your credit balance).

Since no deposit or guarantor needed when applying the card, credit cards issuer have to bear a huge amount of risk by giving us these unsecured loan. To share that risk with us, they charged among the highest interest rate compare to other type of banking services. Normally, here are some charges that comes along with your cards:

1. Annual fees
2. Purchase or Retail charges
3. Cash advance charges
4. Late payment charge

All these charges are normally compounding based on your outstanding balance. The more outstanding balance you have by the due date of the statement, the higher the charges. In order to so-called "help you" to release the burden of paying the full outstanding amount, they allows us to pay minimum 5% of the outstanding balance. Failing to pay the minimum, the card issuer will charge late payment charge on top of other charges. By paying the 5% minimum, we are not out of the wood yet, since the whole list of charges still will be charge every month to your outstanding balance.

Failing to pay the 5% minimum, on consecutive months (depends on the term and regulation from the card issuer), they might take legal action to us to ensure we pay the outstanding balance. They will also block further use of the card (as if we care about that, since the card already overcharged, right?). Upon the legal action, you will be asked to pay the full outstanding amount by the date line. If you fail, it will not stop there. Credit cards issuer might move to a harsher legal action up till declaring insolvency or bankruptcy to you in order to get you to pay back the outstanding balance.

It does sounds scary, right? Having to declare bankrupt merely because of a plastic card? But that is the whole truth of credit cards. However, no matter how scary it sounds, a lot of us out there have a very hard time to part from our credit card spending habit. We keep on spending, we keep on paying 5% minimum and then spend again that 5% that we already paid up. I wonder how anyone will ever manage to pay up their credit cards debt.

When I look at my own psychological experience using credit cards, having to been approved for credit cards by the issuer gave me some kind of recognition as if the bank recognize me as someone who wise enough to handle the loan and have enough income to handle the outstanding balance. Having $3000 income, but been approved for $8000 credit limit card, makes me feel richer and makes me feel as if I deserved that $8000 as my own money. Hey, I photocopied my identity card and spent hard time to fill up the application form, so I do deserved that $8000 as my own money right? (what?). That feeling of sudden richness, harness my feeling that I deserved to improve my lifestyle by spending the cards for all the things that I actually do not need but somehow I feel I can afford it. The easy transaction also not helping at all. Shop for all the expensive gadget, go to the counter, take out my cards, swipe them, sign the slip, then I am done. That ridiculously expensive gadget now is mine. Then when the statement reached my house, instead of scratching my head looking at the outstanding amount, I smile when I saw the minimum amount that I need to pay just for this month. Hmm, that is okay right, pay 5% this month, then continue to pay 5% for other month? I should be able to settle the outstanding balance later, right? Did I managed to do that? Maybe you should ask that question to yourself too.

There are many aspect both financially and psychologically surrounding the use of credit cards that cause many out there, including me, hang on to the cards no matter how much our hard earn salary was drained by the card:

1. By swiping the card during payment, we do not physically see our money flow out. This gives us the illusion that we can spend the credit without effecting our current income.
2. Credit card limit can be up to 2.5 times more than our monthly income, giving us the feeling that we have earn more than we actually are. When our income increased, we tend to upgrade our lifestyle. When we got the credit cards, we increased our lifestyle to the card's credit limit even though, practically, our actual income did not even increased.
3. Having to only pay minimum 5%, we feel that it is manageable. But we did not realize that other charges to the outstanding balance is causing our money to flow out uncontrollably.
4. Bank might not know how much credit cards you own, at least until you are blacklisted by any of the issuer. You might applied for 10 cards and got approved (I point this to my own experience). The more cards you have, the more credit you got, the higher the lifestyle you upgraded, until you are flooded with all the cards outstanding balance that you definitely will not afford to pay up.

My own experience using credit cards is one of my financial nightmare. I would say that credit cards is bad especially for those who do not know how to manage their expenses. But, I am sure that there are a lot of credit cards user out there disagree with me and feel that they can manage this. I thought that too, until I got smack on my face with all the credit card burden. So, please do not lie to yourself trying to ensure yourself that the credit card is manageable. If you cannot handle the credit card, you need to do the most extreme ways to get rid of that habit. Terminate the card, block the card, cut it in half, do what ever you can to stop using the card before the card terminate you.

Credit card is a tool. It suppose to support you to manage your spending. It is safer not to have a large amount of money in your wallet during shopping and credit cards can give that advantage. Since you made credit cards payment by due date, it help to consolidate your spending so that you can manage your budget better. Using the cards for online purchases also help to reduce the unnecessary activities having to go out from the comfort of your house for shopping or paying bills. But the tool is only as good as how you use them. So, use them wisely.

If you plan to apply for cards, or plan to consolidate your credit cards debt, check out the listed credit cards below. I have compiled the current credit cards list here in Malaysia. Every time you want to choose a product such as credit cards, make sure you survey around for the best offer that suits you (not only by which credit card sales rep who talk the smoothest when they approach you at the shopping mall). My advise, look for card without annual fees. Look also for any hidden charges by reading their term and regulation carefully before committing to apply for cards. Do not apply any card just for the sake of trying your luck on the application, make sure you apply only card that best work for you.

Credit Card Name	Minimum Income	Annual Fee (RM)	Purchases Charges (% p.a.)	Cash Advance (% p.a.)
Affin Bank Berhad
Affin Bank Mastercard/Visa	RM18,000.00	50	18	18
Affin Bank Mastercard/Visa Gold	RM36,000.00	150	18	18
BHPetrol "Touch & Fuel" MasterCard Pay Pass	RM24,000.00	150	18	18
Touch 'n Go MasterCard	RM36,000.00	50	18	18
Touch 'n Go MasterCard	RM36,000.00	150	18	18
Alliance Bank Malaysia Berhad
Alliance Bank Visa/MasterCard	RM120,000.00	438	18	18
Alliance Bank Visa/MasterCard	RM18,000.00	68	18	18
Alliance Bank Visa/MasterCard	RM48,000.00	148	18	18
AmBank (M) Berhad
AL-TASLIF CARD-i (Gold)	RM30,000.00	150	17.5	18
AmBank Imagine Visa	RM18,000.00	130	17.5	18
AmBank MasterCard/VISA Classic	RM18,000.00	75	17.5	18
AmBank MasterCard/VISA Gold	RM42,000.00	150	17.5	18
AmBank Platinum Card	RM90,000.00	688	17.5	18
AmBank True Visa	RM36,000.00	0	17.5	18
AmBank-RealRewards MasterCard	RM18,000.00	90	17.5	18
AmIslamic Bank Al-Taslif Platinum Card-i	RM90,000.00	688	17.5	18
AmIslamic Bank TRUE	RM36,000.00	0	17.5	18
AmVirtual Mastercard Account	RM0.00	0		-
CIMB Bank Berhad
CIMB Bank	RM80,000.00	0	13.5 - 17.5	5
CIMB Bank	RM30,000.00	Free For Life	13.5 - 17.5	5
CIMB Bank	RM18,000.00	Free for life	13.5 - 17.5	5
CIMB Enrich	RM50,000.00	168	13.5-17.5	5
CIMB Enrich	RM100,000.00	388	13.5-17.5	5
CIMB Enrich World	RM0.00	888	13.5-17.5	5
CIMB ISLAMIC MASTERCARD	RM18,000.00	0		-
CIMB ISLAMIC MASTERCARD	RM30,000.00	0		-
CIMB ISLAMIC MASTERCARD	RM80,000.00	0		-
CIMB PETRONAS MASTERCARD	RM18,000.00	0	13.5-17.5	5
CIMB PETRONAS MASTERCARD	RM30,000.00	0	13.5-17.5	5
CIMB PETRONAS MASTERCARD	RM80,000.00	0	13.5-17.5	5
CIMB WORLD MASTERCARD	RM240,000.00	0	13.5-17.5	5
Direct Access	RM24,000.00	0	13.5-17.5	5
Direct Access	RM80,000.00	0	13.5-17.5	5
DIRECT ACCESS WORLD MASTERCARD	RM180,000.00	0	13.5-17.5	5
Citibank Berhad
AirAsia-Citibank Gold MasterCard	RM36,000.00	180	13.5%, 16% or 17.5%	18
AirAsia-Citibank MasterCard	RM18,000.00	70	13.5%, 16% or 17.5%	18
Citibank Cash Back Gold Card	RM36,000.00	195	13.5%, 16% or 17.5%	18
Citibank Cash Back Visa	RM18,000.00	90	13.5%, 16% or 17.5%	18
Citibank Celcom Card	RM18,000.00	90	13.5%, 16% or 17.5%	18
Citibank Choice Card VISA & MasterCard	RM18,000.00	0	13.5%, 16% or 17.5%	18
Citibank Clear Card VISA & MasterCard	RM18,000.00	90	13.5%, 16% or 17.5%	18
Citibank Giant Visa Card	RM18,000.00	90	13.5%, 16% or 17.5%	18
Citibank Gold VISA & MasterCard	RM36,000.00	195	13.5%, 16% or 17.5%	18
Citibank Platinum VISA & MasterCard	RM100,000.00	600	13.5%, 16% or 17.5%	18
Citibank Shell Gold Visa card	RM36,000.00	195	13.5%, 16% or 17.5%	18
Citibank Shell Visa Card	RM18,000.00	90	13.5%, 16% or 17.5%	18
Citibank Silver VISA & MasterCard	RM18,000.00	70	13.5%, 16% or 17.5%	18
EON Bank Berhad
EON Bank Classic MasterCard	RM18,000.00	75	13.5%, 16% or 17.5%	18
EON Bank Classic VisaCard	RM18,000.00	75	13.5%, 16% or 17.5%	18
EON Bank Gold MasterCard	RM36,000.00	150	13.5%, 16% or 17.5%	18
EON Bank Gold VisaCard	RM36,000.00	150	13.5%, 16% or 17.5%	18
EON Bank Platinum MasterCard	RM100,000.00	300	13.5%, 16% or 17.5%	18
Hong Leong Bank Berhad
Hong Leong ACCIM Visa	RM30,000.00	216	13.5%-17.5%	18
Hong Leong Amex	RM80,000.00	400	13.5%-17.5%	18
Hong Leong Amex	RM30,000.00	160	18	18
Hong Leong Amex	RM18,000.00	80	13.5%-17.5%	18
Hong Leong Essential Visa	RM30,000.00	100	13.5%-17.5%	10.8
Hong Leong MasterCard	RM80,000.00	400	13.5%-17.5%	18
Hong Leong MasterCard / Visa	RM30,000.00	160	13.5% - 17.5%	18
Hong Leong MasterCard / Visa	RM18,000.00	80	13.5%-17.5%	18
HONG LEONG MTV visa	RM24,000.00	160	13.5%-17.5%	18
Hong Leong Platinum Business mastercard / Visa	RM80,000.00	400	13.5%-17.5%	18
Hong Leong Platinum Business mastercard / Visa	RM80,000.00	400	13.5%-17.5%	18
HSBC Bank Malaysia Berhad
HSBC Mastercard	RM18,000.00	80	18	18
HSBC Mastercard Gold	RM40,000.00	160	18	18
HSBC Visa	RM18,000.00	80	18	18
HSBC Visa Gold	RM40,000.00	160	18	18
HSBC Visa Platinum	RM150,000.00	600	18	18
Malayan Banking Berhad
Visa	RM120,000.00	550	18	18
Visa, MasterCard, American Express	RM42,000.00	130	18	18
Visa, MasterCard, American Express	RM18,000.00	60	18	18
OCBC Bank (Malaysia) Berhad
Great Eastern MasterCard/Visa	RM24,000.00	70	18	18
Great Eastern MasterCard/Visa	RM30,000.00	150	18	18
Platinum MasterCard	RM120,000.00	600	18	18
Titanium MasterCard	RM36,000.00	250	18	18
Visa/MasterCard Classic	RM18,000.00	70	18	18
Visa/MasterCard Gold	RM30,000.00	150	18	18
Public Bank Berhad
PB Executive MasterCard	RM18,000.00	88	17.5	18
PB Gold MasterCard	RM25,000.00	150	17.5	18
PB ING Credit Mastercard	RM18,000.00	68	17.5	18
PB MasterCard Standard	RM18,000.00	75	17.5	18
PB Platinum MasterCard	RM80,000.00	333	17.5	18
PB Visa Classic	RM18,000.00	75	17.5	18
PB Visa Gold	RM25,000.00	150	17.5	18
PB Visa Platinum	RM80,000.00	333	17.5	18
RHB Bank Berhad
RHB Classic Card	RM18,000.00	70	13.5%, 16% or 17.5%	18
RHB EVO	RM18,000.00	100	13.5%, 16% or 17.5%	18
RHB Gold Card	RM48,000.00	130	13.5%, 16% or 17.5%	18
RHB MasterCard Platinum Business	RM18,000.00	0	13.5%, 16% or 17.5%	18
RHB Platinum Card	RM60,000.00	500	13.5%, 16% or 17.5%	18
RHB Travel Money	RM18,000.00	70	13.5%, 16% or 17.5%	18
RHB Visa Gold Business	RM18,000.00	0	13.5%, 16% or 17.5%	18
Tesco-RHB Card	RM18,000.00	88	13.5%, 16% or 17.5%	18
Standard Chartered Bank Malaysia Berhad
Amway MasterCard Classic	RM18,000.00	90	17.5	18
Amway MasterCard Gold	RM18,000.00	175	17.5	18
Business Gold Visa	RM18,000.00	200	17.5	18
Business Platinum Visa	RM60,000.00	300	17.5	18
Character MasterCard Gold	RM18,000.00	138	17.5	18
Classic Visa / Master Card	RM18,000.00	90	17.5	18
GOAL! MasterCard Gold	RM18,000.00	150	17.5	18
Gold Visa / Master Card	RM18,000.00	175	17.5	18
Motorist Club Visa - Classic	RM18,000.00	90	17.5	18
Motorist Club Visa - Gold	RM18,000.00	180	17.5	18
Nissan Visa - Classic	RM18,000.00	90	17.5	18
Nissan Visa - Gold	RM18,000.00	175	17.5	18
Platinum Visa / Master Card	RM60,000.00	250	17.5	18
Visa / Master Platinum Card (master)	RM90,000.00	300	18	18
Visa / Master Platinum Card (Visa)	RM105,000.00	500	18	18
Visa Infinite	RM150,000.00	800	17.5	18
United Overseas Bank (Malaysia) Berhad
UOB Club Plus MasterCard	RM48,000.00	0	18	18
UOB Lady's Platinum	RM70,000.00	388	17.5	18
UOB Lady's Visa Classic Card	RM18,000.00	68	17.5	18
UOB ONE Card	RM18,000.00	68	17.5	18
UOB ONE Card	RM18,000.00	68	17.5	18
UOB ONE Platinum	RM70,000.00	388	17.5	18
UOB ONE Platinum	RM70,000.00	388	17.5	18
UOB Preferred Platinum	RM70,000.00	388	17.5	18
UOB Visa Business Card	RM18,000.00	150	17.5	18
UOB Visa/MasterCard Corporate Card	RM18,000.00	150	17.5	18
UOB Visa/MasterCard Purchasing Card	RM18,000.00	150	17.5	18
UOB VOX Visa Card	RM18,000.00	0	17.5	18