When you decide to own a credit card, you need to make sure that the one you get is the one that suits your needs the best. Here are some things you can keep in mind while choosing your first credit card
Choose the right type of card
There are multiple types of credit cards available. This includes cashback cards, rewards cards, travel cards, petrol cards, shopping cards, dining cards, and many more. In order to find the best one for yourself, you should evaluate your lifestyle and find one accordingly. If you require a card for your everyday retail purchases, a cashback card would be the best fit for you. In case, you travel on a regular basis, a travel card that earns you AirMiles and gets you overseas spending benefits will be the right one for you. A petrol card can be the best partner for your everyday petrol needs. Similarly, a dining card that gives you dining discount and dining deals can prove beneficial if you dine out on a regular basis.
For example:
- Best cashback cards: Standard Chartered JustOne Platinum MasterCard and Hong Leong Wise Card
- Best petrol cards: Citibank Shell-Citi Gold Credit Card and Maybank Islamic PETRONAS Ikhwan Visa Platinum Card-i
- Best travel cards: Standard Chartered WorldMiles World MasterCard and HSBC Visa Signature
- Best shopping cards: Citi Cash Back Card and CIMB Cash Rebate Platinum Card
Explore other choices available
Once you shortlist credit cards according to your lifestyle, the next step you need to take is to explore other available choices that come with similar benefits. In these cases, you are required to compare the cards on the basis of finance charges, cash withdrawal fee, and other charges associated with them.
For example: Citi Simplicity+ Card earns you up to 10% interest-back on retail purchases and cash withdrawal. This card comes with no late payment charges or over limit fee.
Check the annual fee of the card
Another important factor that you should keep in mind while choosing your first card is the annual fee associated with it. There is a range of cards that come with a lifetime annual fee waiver while others let you enjoy an annual fee waiver on minimum spend-and-swipes basis.
For example: HSBC Amanah Premier World MasterCard Credit Card-i and Citi Simplicty+ Card come with an annual fee waiver for lifetime with no conditions attached. While with AmBank BonusLink Visa and Alliance You:nique Card, you can get an annual fee waiver if you swipe your card at least 12 times a year.
Look for a card with low finance charges
Another major factor affecting the search for your perfect card is the finance charges associated with a card. Most of the cards have finance charges ranging from 15% to 18% p.a. But there are a number of cards that come with a relatively lower finance charge range.
For example, the following are the cards with low finance charges:
- AmBank True Visa Credit Card: Starting from 7.99% p.a.
- Maybank 2 Gold Card: Starting from 8.88% p.a.
- Alliance You:nique Card: From 9.00% p.a.
- BSN Classic Credit Card: From 11.00% p.a.
Are you eligible for the card?
While choosing the right card for you, you also need to check the card requirements. This mainly includes the age requirement, income requirement, and nationality requirement. A credit card is only available to individuals who meet its eligibility criterion. The minimum age requirement of a principal card is generally 21 years while that of a supplementary card is 18 years. The following are some cards with low annual income requirements:
- Standard Chartered JustOne Platinum MasterCard: RM24,000
- Citi Simplicty+ Card: RM24,000
- BSN Classic Credit Card: RM24,000
- Alliance You:nique Card: RM24,000
Joining benefits and other perks associated with the card
While choosing a credit card, you can also look out for the joining perks associated with the card. For example when you get a Standard Chartered travel card and activate it within the first 45 days of approval, you can get a cashback of RM128.
There are several other perks that can help you filter your search further. For example AmBank cards come with an excess limit service that lets you use more than the designated credit limit assigned to your card on permanent and temporary bases.
Also, there are cards that offer you multiple value added services like a complimentary Touch n’ Go Zing Card for faster checkouts at tolls, 0% balance transfer for transferring your outstanding balances onto your card from other bank cards, credit protector, instalment payment plan on your purchases, and many more.
What are the other charges associated with your card?
Apart from finance charges and annual fee, there are several fees associated with a credit card that you may have to bear. You can filter your search further based on the fees, charges, and penalties associated with your card.
The following is the list of fees and charges associated with a credit card:
- Monthly instalment payment: This is the minimum amount you need to pay on a monthly basis. Generally monthly payment associated with a card is 5% of the outstanding amount or at least RM50 (whichever is higher).
- Late payment charges: In case you miss the due date of your monthly payment, you need to pay an additional fee. This is called late payment charge. Late payment charges are generally 1% of the amount due or RM10, whichever is higher.
- Cash advance fee: If you use your credit card to withdraw cash, you will be charged with a cash advance fee.
- Over-limit fee: You will be charged with a fee when you exceed the credit limit assigned to your card. This may vary from bank to bank.
- Overseas transaction fee: When you use your card for transactions overseas, you are charged with an overseas transaction fee. This is determined by VISA or MasterCard International with an addition to an administration fee charged by the card issuing card.
There are cards that have a lower range of these charges. For example: Citi Simplicity+ Card doesn’t charge you with any late payment fee or over-limit fee.
