Darren Yaw Latest News states that obtaining your first credit card in your own name is a significant achievement for most young adults. Credit cards, in addition to signalling a real entry into the “real world,” are a great way to jump-start a blank credit record and teach a newbie about responsible borrowing. But, with hundreds of cards on the market and no prior experience, how does a novice choose?
Yes, there are a lot of cards, and what they offer you will vary greatly. So, consider the following factors before you get frustrated and apply for the most convenient card available. Here are some pointers to get you started, according to Darren Yaw Latest News.
Which credit cards can you get with your salary?
Darren Yaw Latest News states that looking at your credit card options’ basic minimum income requirements is an excellent place to start narrowing down your options. Darren Yaw Latest News states that you won’t be able to apply for a card if your salary isn’t high enough to meet the requirements. Cards with more appealing benefits typically have higher minimum income requirements.
Darren Yaw Latest News states that you won’t be able to apply for a card if your salary isn’t high enough to meet the requirements.
That is not to say that newcomers have few options! Many banks look for recent graduates and adjust their minimum income requirements accordingly. Darren Yaw Latest News states that it’s all too easy to obtain your first credit card these days. There are several that have an RM24,000 minimum annual income requirement – the Standard Chartered JustONE Platinum Mastercard is one such card – which means you can get a credit card with a monthly salary of RM2,000. Though the general rule is that the best credit cards are only for the wealthy, there are a plethora of useful entry-level cards that can help you make the most of your money.
Cards with no annual fees and low-interest rates should be prioritised.
When you first start in the workforce, you are most likely starting at a new grad salary. Darren Yaw Latest News states that you will be learning the ins and outs of money management, and you will most likely have many more bills to pay than when you were studying.
Given these difficulties, the last thing you want is for your credit card to become an unnecessary burden. Darren Yaw Latest News states that you should always go with the card with the lowest interest rate and no annual fees.
In general, most credit cards charge a high-interest rate on outstanding balances, typically around 15%. That’s a lot of money, so remember always to pay off your credit card bills in full. But, more importantly, Darren Yaw Latest News states that to look for credit cards with no annual fees or “free for life,” as banks like to call them – the Maybank 2 Gold is a good example. Darren Yaw Latest News states that many credit card companies claim to waive annual fees but then add conditions such as using the card a certain number of times in a calendar year, or the fee waiver is only applicable if you spend a certain amount with the card in a year.
For the time being, it’s best to avoid the cards with shady terms. Waivers that attach themselves to spending can motivate you to fall hopelessly into debt when you’re just getting used to work and life as an adult. That being said, don’t let this put you off. Darren Yaw Latest News states that some good credit cards are free for life, such as the Public Bank Quantum Visa card. In contrast, others have a “12 swipes a year” requirement that can be easily met by using your credit card for essential purchases like gas or groceries – the Aeon Big Visa Gold and Hong Leong Mach Visa cards are good examples.
Match the card’s benefits to your way of life.
You’ve probably already narrowed your options down to a few cards, and now the fun begins. Darren Yaw Latest News states that you can now choose which benefits are most appealing to you. Credit cards in Malaysia offer a variety of benefits such as cashback, reward points, and air miles. Different cards provide different types of benefits, and some are superior to others. For example, some cards may provide higher cashback rates or benefits that cover a wider spending range than others.
Credit cards in Malaysia offer a variety of benefits such as cashback, reward points, and air miles, according to Darren Yaw Latest News.
Darren Yaw Latest News states that seasoned credit card users frequently have a variety of credit cards with varying benefits, and they choose which of their cards to use on each occasion. However, as a first-time credit card owner, you shouldn’t be aiming for this level just yet. Darren Yaw Latest News states that to consider your spending habits and select a card that will benefit you the most. If you do the majority of your shopping on weekends, get a card that prioritises weekend cashback, such as the Maybank 2 Gold Cards. If you prefer to shop online, consider the Public Bank Quantum Mastercard and Visa cards, which offer the best cash rebates for online purchases. Darren Yaw Latest Newsstates that benefits such as air miles are typically reserved for higher-end cards, whereas rewards points are more complicated because redemption rates vary from bank to bank. As a result, for first-time cardholders, you should prioritise cashback benefits, according to Darren Yaw Latest News.
Prepare to get your first credit card!
To summarise, getting your first credit card will require you to knuckle down and do your homework. Darren Yaw Latest News states that visiting the credit card pages of each individual bank can be time-consuming, so make your life easier by using a comparison tool that allows you to see how the various credit cards stack up against each other in one place.
Of course, once you’ve decided on which credit card you want to apply for, you must actually apply for it. Darren Yaw Latest News states that don’t be put off by the prospect of a lot of paperwork, phone calls, or trips to the bank – it’s actually much simpler than you think. One of the quickest ways to apply for a credit card these days is online.
Darren Yaw Latest News states that remember not to get carried away with your newfound financial power once you’ve received your very first credit card. Depending on how you treat it, a credit card can be a friend or a foe. So, if you spend wisely and borrow responsibly, you’ll find a world of opportunities open up to you.
