Are you one of the generation Zs who are planning to get the first credit card, but not sure which one is suitable for you? In this article, we listed down 6 best credit cards that can give you great benefits and rewards.
Just as millennials start finding their first grey hair on their heads, there’s a new generation taking centre stage: generation Z. And if you’re reading this article, it probably means you’re part of it!
As you enter the workforce, you may be relatively new and unfamiliar to the different financial products available in the market. You probably have almost all the main e-wallets readily available on your phone, debiting through your savings account or depending on your parents’ credit card to top-up your wallet.
So as you navigate through adulthood, you may want to consider getting your first credit card. Before we list down the most ideal ones for you, here are some really important things to know first:
1. There are different types of credit cards.
And by that, we don’t mean different cards from different banks. By that, we mean that the reward systems of these cards are different.
Some of the popular types include:
To choose the right card for yourself, you want to look for one that best suits your lifestyle preferences.
Read also: Quiz: What’s Your Credit Card Type?
2. You may not get approved, and that’s for one very ironic reason.
Before deciding to approve your credit card application, banks would first check your credit score. What’s that, you ask? Very simply, it is a number between 300-850 which represents your creditworthiness and how likely you are to repay debt. These are the three most important digits of your life.
If your score is low, it indicates that you’re probably a bad paymaster and raise red flags for banks. If your score is high, it tells banks that you’re a responsible and safe candidate to lend money to.
If you don’t currently have a history of borrowing money, you’ll come up with no credit score at all. This makes it impossible for banks to read you and approve your application. It’s a chicken-and-egg situation, and a very ironic one too!
While this doesn’t always resort to getting your application rejected, you can always increase your chances of getting approved by applying for a credit card in the bank with your savings account. You would already have a record with them, and they will be able to see how healthy your savings are.
Read also: Ultimate Guide To Credit Scores
3. You need a minimum annual salary of RM24,000
No money, no honey. But in this case, no credit card!
Banks will never offer you financial help if you don’t have what it takes to repay your owing, which is why you’ll need to have at least an annual salary of RM24,000 in order to get your first card.
This needs to be substantiated with payslips from 3 consecutive months - and don’t even think about trying to forge documents, as doing so can get you in some serious trouble.
4. You should always pay your bills in full to avoid getting charged interest.
Credit cards get a bad rep because of its notoriously high interest rate (from 15% p.a.). This is one of the reasons why so many people end up in serious debt, as these rates are compounded over time.
To avoid this, just remember to pay your bills on time. But that’s not all - instead of paying just the minimum fee (which will save you a late fee), you should also pay your bill in full, as you will be charged an additional interest for the debt that you carry over.
Being a fresh graduate or entry-level executive, it’s important that you choose cards that are suitable for you. Look for cards that have low salary requirements and waived annual fees, as this will let you enjoy the flexibility of owning a credit card at minimal costs.
Here are six that we love:
Great if you’re: An existing Maybank user who wants to keep everything on one app and one bank.
Plus points about this card:
Apply for the Maybank 2 Gold Credit Card Here
Perfect if you’re: A digitally-savvy spender who does a lot of transactions online.
Plus points about this card:
Apply for the CIMB e Credit Card Here
Perfect if you’re: A heavy Grab user who loves using GrabPay and collecting points.
Plus points about this card:
Apply for the Maybank Grab Credit Card Here
Perfect if you’re: Looking to protect yourself with added insurance coverage.
Plus points about this card:
Apply for the OCBC Great Eastern Credit Card Here
Perfect if you’re: All about the things that are aesthetically pleasing!
Plus points about this card:
Apply for the Citi Simplicity+ Credit Card Here
Perfect if you’re: An everyday driver who would appreciate petrol rewards and accident protection.
Plus points about this card:
Apply for the Public Bank-Petron Credit Card Here
Once you compare and choose the right credit card for yourself, it’s now time to actually apply for it.
1. Where to apply
You can apply for one in many ways, such as going directly to the bank, going to their website, or using comparison sites like CompareHero.my.
2. How to apply
Applying is simple. You will only need to fill up a form and provide some official documents for banks to vet through your application. This would typically include:
3. Sit back and wait for a response
It usually takes one to two months for the bank to process your credit card application. A complete credit card application will include the required documents including a copy of your identity card, income statements and also Employee Provident Fund (EPF) statements. If you don’t hear back, you can always call your bank (or CompareHero.my if you’re applying through us!).
We hope this helps you in your journey into adulthood. For more advice, these may help you: