October 25, 2017
Many Malaysians have a misconception that having a credit card is a bad thing, let alone owning more than one. However, the real problem lies within the people who misuse credit cards.
With that being said, owning more than one credit card can actually be helpful if you don’t use it to spend recklessly on things you don’t need, and then only pay a minimum outstanding amount every month. For those who want to know how to use your credit card responsibly, read this article!
If you are a rational spender when it comes to using credit cards, here are 6 reasons why you should own more than one credit card:
When you have a credit card that has a limit of RM6,000 and you actually swipe it all on a new furniture, you might want to consider getting another credit card that has a great balance transfer plan at zero or really low-interest charges to help you save money such as the Maybank 2 Card! Imagine paying the RM6,000 at full interest charge of 18% per annum, you could be paying more than RM7,000 if you choose to pay only the minimum outstanding amount to the same bank every month.
However, you can pay the exact amount of RM6,000 with a balance transfer plan at zero interest charges from another bank. Can you see the amount of money you could save here?
On top of that, a balance transfer often comes with an instalment period so you can easily adjust the repayment according to your financial capabilities or preference. Check out the best balance transfer plans in Malaysia here!
You will never know what happens in the future, such as losing your credit card in a toilet or getting your wallet snatched by a thief. Hence, we strongly advise you to have a backup credit card to support your daily finances such as paying bills, grocery shopping and paying petrol expenses.
This is even more important to those who often travel overseas. An extra credit card with just enough credit limit may save your day if you lose your wallet or got robbed.
Did you know you will need to pay a fee just to get your identification card and passport at the embassy office overseas if you lost them?
Relying on a single credit card may not cut it anymore these days. If you want to be prepared for all kinds of emergency or unexpected events, it is a good idea to have at least two credit cards with no annual fee so you have a bigger combined credit limit.
A normal credit limit for a young executive earning RM3,000 is about RM8,000. What if a car accident happens and you need to pay both medical fees and car repair costs? One credit card may not be enough to cover it.
Having more than one credit card will not damage your credit score, in fact it can help to improve your credit score. With two credit cards at hand, you will have higher credit limit compared to having only one.
Your goal is then to make sure that you do not misuse the credit cards by spending recklessly and accumulate a tremendous amount of credit card debt. With a low ratio of credit utilisation, you will convince the credit agency that you are a good paymaster and are not overwhelmed with debt. This way, you credit score will turns out to be higher than those who have only one credit card.
Different credit card types offer different features such as rewards points, cashback, and air miles. For example, HSBC Visa Signature offers 8x rewards points for spending at The Gardens Mall while Maybank 2 Card (Amex) offers 5% cashback on weekends. By planning your expenses carefully, you can get the best of both worlds!
On top of that, different banks have exclusive deals with merchants which includes hotels, restaurant, petrol stations, shops, and supermarkets. If you have two or more credit cards from various banks, you can leverage on those deals too.
The best thing about credit card application in Malaysia are the free gifts. From trolley bags, soft toys to power banks, you can save so much money by applying for a credit card online easily now!
Want to apply for a credit card? Compare and apply for the best credit cards here!