Having a credit card in this day and age is a virtual necessity. There are just so many different ways in which a credit card can make your life easier. First of all, you don’t need to carry any cash in your pocket. VISA and MasterCard are accepted at virtually every kiosk or outlet, and you can easily pay money through the card. This makes international travelling and transactions tremendously easy. However, while credit cards offer a plethora of benefits, they also have a variety of drawbacks.
If you do not keep your expenditures in check, you might fall into the bottomless pit of credit card debt. If you are unable to make the payments on time, the credit card company will continue to pile on interest onto your balance, and your costs will continue to rise. Before you know it, you will find yourself so deeply in debt that it will be virtually impossible for you to get out of it. Therefore, it’s important that you first check your spending before applying for any credit card.
You also need to think about what you are going to use the card for. If you are going to use the card as a replacement for cash and plan on using it at every other shop, you should look for a card that offers some sort of a rewards system. You can get a cash rebate credit card in Malaysia if you want to make some money back from your purchases. Basically, this means that the credit card company will refund a small percentage of what you spend. Generally, the cash rebate is as little as 1% or so of your total expenditure. Naturally, you will have to spend a great deal of money in order to make your cash rebate useful. However, since most people don’t really track their spending when using credit cards, it’s a great way to get some of it back on the side.
Things to Check
Before buying a credit card, there are several important things that you need to check. First of all, you should check the Annual Percentage Rate on the card. The APR is the cost of borrowing associated with the credit card. It’s the percentage that you will have to pay on a yearly basis if you don’t clear your balance within a month or so.
The second thing that you should check is the minimum repayment amount. If you are unable to pay off the whole amount within the month, you will need to pay a minimum amount in order to prevent interest from becoming applicable on your card.
A better option that you should keep in mind when checking for different credit cards is to compare the rates on offer. You can compare the rates by checking out several comparison websites. These websites offer good information about the pros and cons of different cards, and will help you decide accordingly based on your requirements and the type of card you want.