Credit Card Lighthouse

5 Credit Cards That Give 5% Cash Back

2012-01-24T00:00:00.000-08:00

This is a guest post by Mike, the owner and operator of CreditCardForum. There you will see his ratings of the best credit cards for 2012 (for U.S. residents). What follows are 5 of his favorite cash back cards for people who live in Malaysia.

For those who carry a balance, credit card rewards should not be a priority. Why? Because the interest rate you are paying is likely many times higher than the value of your cash back or points. So if you carry credit card debt, your focus should be on finding the lowest APR possible.

However for those who pay off their entire credit card bill every month (and therefore pay no interest) then reward programs are a lucrative proposition. It’s like getting free money. But which programs pay the most? Well here are 5 credit cards available in Malaysia that give you rewards worth up to 5%.

1. Citibank Cash Back Platinum Card

I wish I lived in Malaysia so I could take advantage of this offer, because Citi doesn’t offer anything this good in the United States!

You earn 5% cash back on petrol (or as I call it, gas) spending of up to RM600 per month. For groceries, you earn 2% on up to RM3,000 spending each month at selected stores (Servay, Econsave, Carrefour, Tesco, Cold Storage, Everise, Giant, and Mydin). There’s also a 2% rebate at some pharmacies (Caring, Guardian, and Watson) and CitiBank online payments for Celcom, DiGi, Maxis bills. Everything else will earn you a flat 0.3%.

However the downside is that this card will cost you RM195 per year. So if you don’t spend much, it might not be worth it. The income requirement is RM40,000 per year.

2. HSBC Visa Signature

This is a more exclusive card, since your annual income must be at least RM100,000. If you earn that much, this card is a good deal because there is an annual fee waiver as long as you make at least 12 swipes per year.

The rewards programs will give you 5 points per RM at participating grocery stores, shopping malls, and department stores (on spending of up to RM1,000 per month). You also earn 5x points for all dining and hotel purchases made overseas (up to RM1,500 per month). For all other spending it is 1 point.

With this card your points can be redeemed for different things, ranging from travel to merchandise. Depending on what you choose, it might be possible to get a high enough value so your 5x points = 5% cash back.

3. Maybankard 2 Gold Card

This is an interesting offer because you actually get 2 credit cards; an American Express and a Visa or MasterCard. There is a lifetime fee waive and the income requirements are more reasonable at RM30,000.

The MasterCard is not very exciting, because it will only earn 1x TreatPoints for every Ringgit spent. However the American Express will give you 5x TreatPoints. Best of all, during weekends the American Express card will also give you 5% cash back (up to RM50 per month).

4. Giant-Citibank Credit Card

If you shop a lot at Giant, this credit card offer is worth considering. The income requirement is low at RM 24,000 however the annual fee is relatively high at RM120.00. So make sure you study the cash back program closely to see whether or not it will be worth it for your spending.

Tier 1: It your total monthly spending (at Giant + elsewhere) is under 800RM then you will only earn 2.5% on the purchases from Giant and 1% at participating restaurants and utilities.
Tier 2: If your total monthly spending is 800RM and above, this is one of the best cash back credit cards around. It will give you a full 5% cash back at Giant stores and 2% on the restaurant and utility categories.

However the biggest disadvantage with this program is that your maximum rebate at Giant stores is RM 400 for Tier 1 and 600 for Tier 2. Your total annual rebates are also capped at a maximum of 600.

5. OCBC Titanium Master Card

Just like the HSBC Visa Signature, this credit card is free as long as you make at least 12 purchases per year. The income requirement is RM36,000 but I have read reviews from customers which much higher incomes who for some reasons, don’t get approved for it. So it sounds like this card is not the easiest to get.

This has one of the best cash back programs on the market because it’s based on categories, instead of specific merchants. You will get 5% cash back at grocery stores, restaurants, petrol stations, and utility bills. Everything else will be a flat 1% rebate.

With this generous program, it comes as no surprise that there is a limit to how much you can earn; a max of RM50 per month and 600 per year.

Conclusion?

I own and operate one of the most popular credit card websites in the United States, so I know the reward programs quite well! We do have some excellent 5% cash back card offers in the US, but nothing that compares to the above credit cards! So if you live in Malaysia, consider yourself lucky!

Should you repay your mortgage balance with the help of a credit card?

2011-09-27T00:00:00.000-07:00

This is a guest post by Alex Brown, Marketing Head and Editor of mortgagefit.com.

As the current economic situation is taking a toll on the US citizens, people are not getting the chance of repaying their home mortgage loan with their own funds. Most of them are looking for ways through which they can repay their loan without taking much stress on their present finances. When a homeowner is too much worried about his monthly obligations, he takes resort to his plastics in order to make life easier. However, this is not at all recommended by the financial experts it can heavily take a toll on your finances. This is the reason why it is said that a person must consider how much can I afford to pay for a house before taking out a home loan so that he doesn’t fall in danger. Though there are various credit card companies that have introduced the programs that allow them to repay their home loan with their card, but it is always better not to opt for this option.

Some important questions to consider before using your cards to make the mortgage payments Even though paying back your mortgage balance with your credit cards may seem to be an appealing process, you must still ask yourself some important questions.

1. Do I have the ability to repay my balances in full? The first and the most important question is whether you have the ability or rather the financial ability to repay your debts in full every month. On high cost items like mortgage loans, the interest rates will always accumulate and this can make repayments costlier for you. Though the interest rates that you pay for your mortgage loans are tax-deductible, yet the credit card interest rates are not. Carrying a balance from one month to another will have a dear impact later on.

2. Will this entire process hit my credit score? Whenever you think of repaying your mortgage payments with credit cards, you must always consider the impact on your credit score. Only when your credit limit is not enough and after you add your mortgage payments to your credit card, it consumes half of your limit, this can hurt your credit score.

3. Am I timely while paying the credit card bills? You must always make sure that you repay all debt obligations on time so that you don’t incur late fees and penalties in the long run. On credit cards, a single late payment can cost you dearly.

Even after you get positive answers to the questions mentioned above, you must try your best to avoid repaying your mortgage with credit cards. It is always better to consider ‘how much can I afford to pay for a house’ before taking out a loan so that such a situation does not arise when you need to take help of your credit card. You must also manage your personal finances and make payments on time.

Top Five Ways on Negotiating a Credit Card Deal

2011-08-30T00:00:00.000-07:00

This is a guest post by Mike Brains

There are many ways you can improve your credit card deal by negotiating with your card provider. In fact, by following these tips, you could save a lot of money.

1. You should always compare credit cards. If you see a credit card with a better APR than you currently have, tell your card provider.

Often, they will reduce your APR to keep you as a customer. If they can't do this, you should transfer to a provider that offers the best credit card rates.

2. Do not be afraid to take advantage of your loyalty as a customer. If you have held a credit card for a long time, you can use this to negotiate a reduction in the interest rates or fees. Highlight how valuable you are as a customer, and your card provider may reward you.

Again, it makes sense to compare credit cards. Knowing what other companies are offering will help you negotiate with your current provider.

3. It also helps to know how you use your card when negotiating. For example, if you always pay off the balance early, then it doesn't matter if you are getting the best credit card rates. After all, you won't be charged interest if you have no balance.

Instead, you should try and persuade your provider to offer rewards such as air miles or cash back.

On the other hand, if you often have a balance on your card, your negotiations should be aimed towards reducing the APR and any fees.

4 Make sure you talk to someone with authority when negotiating with your credit card company. Most customer service staff won't be able to offer the best credit card rates, so ask to speak to a supervisor.

5. Finally, try to reduce any fees. Once again, it helps to compare credit cards so you can quote the fees charged by other companies.

Nothing will get your credit card company to act like threatening to close your account and go to a rival.

New Credit Card Rules in Malaysia

2011-03-23T22:51:00.000-07:00

Bank Negara Malaysia is tightening credit card requirements for those in the lower-income bracket to keep household debt at manageable levels.

With immediate effect, first time applicants for a credit card must now have a minimum monthly salary of RM2,000 from RM1,500 previously.

According to Bank Negara Malaysia deputy governor, Nor Shamsiah Mohd Yunus, new and existing cardholders earning RM36,000 per annum and less, can hold only credit cards from a maximum of two issuers. The maximum credit limit has been capped or two times the monthly income of the cardholder

For existing cardholders, they need to choose their preferred two issuers by December 31. For those existing cardholders who are earning less than RM24,000 per annum, they need not surrender their credit cards.

Nor Shamsiah said cardholders would be given at least two years to service their outstanding debt for cancelled cards to comply with the new requirement

For existing cardholders, whose outstanding balance exceeds the maximum credit limit, a grace period of two years will be given to settle the amount in excess of the maximum credit limit

From January 1 onwards, issuers shall review cardholders’ eligibility on the anniversary date of the credit card. During the review, if cardholders have fulfilled their quota of holding credit cards from two issuers, the issuer shall not extend their credit card facility to the cardholder.

Quick and Easy Ways to Become a Bankrupt

2010-10-19T00:00:00.000-07:00

Spending money can be a fun and easy thing to do but building up debt is even easier by just carrying a few credit cards. Here are the fastest ways to ruin your personal finance:

1. Don’t track your spending: Don’t care about the formula and the budget that income = expenses + savings. All you want is just to spend as your wish. without considering your limited income

2. Just pay the minimum amount for your credit cards: Credit cards give you extra spending power. Just charge and charge to your heart’s content. When you receive the money statements just pay the minimum sum or any other smaller amount depending on the fund available in your checking account. You are not bothered to make prompt payment and you let the bank charge late payment fees and interest on outstanding balances.

3. Credit card advances: You get cash advances against your cards and buy what you want or to meet your day-to-day expenses when you run out of cash.

4. Follow your neighbors: Your neighbor has just bought a new car. You are thinking that if he can afford it you can too. You go ahead and trade-in your old car which is less than three years old.

5. Skip your loan installment payments: By now you are unable to make ends meet. You have reached your limit for all your credit cards
and you have no choice but to skip a few loan repayments.

Your spending pattern will not last long because your financial resources are limited and your debt is attracting more and more interest and it is no longer manageable. Very soon, financial institutions where you have obtained your credit cards and loans will file bankruptcy proceedings against you.

Car Loans and Bankruptcy in Malaysia

2010-09-01T00:00:00.000-07:00

According to a report in The Star, more than 500 people, mostly aged between 35 and 44 years, were declared bankrupt every month from January to May this year because they failed to service their motor vehicle loans

Once a person is declared a bankrupt he will be restricted from, among others, traveling overseas, holding the post of company director, and will have to give up his assets, including property and cars. He must contribute to the bankruptcy estate, and will only be discharged once the sum owed is settled.

Under the hire purchase agreement, the bank repossesses the car if the borrower defaults the monthly installments for three consecutive months.

It will sell off the car to recover the sum owed and if the amount still owed is more than RM30000 the bank will file a bankruptcy petition in the High court.

In case where the sum owed is below RM30000 the bank will wait until the amount, with accumulated interest, balloons to RM30000 before filing the petition

How do you avoid a default in car loan and bankruptcy? Read 10 Tips to Avoid a Default on a Car Loan and Bankruptcy.

Bankruptcy and the Management of Debtors and Creditors in Malaysia

2010-08-10T00:00:00.000-07:00

According to a recent news item in the New Straits Times, creditors will not be able to present bankruptcy petitions against debtors unless they can prove that all avenues were made to trace the latter for repayments, and delivery of any notices actually reached them. This is under a planned reform of the Bankruptcy Act 1967.

Currently under the act, only social guarantors are given this sort of protection as it required creditors to exhaust all avenues to recover debts owed to them by debtors.

Insolvency Department deputy director-general Haini Hassan said the reform would also see the end of creditors easily passing the bulk of work to the department to do retrieval of monies from debtors by liquidating their assets. “There is also a proposal for creditors to be given two to three years to do that before filing the petition,” she said in an interview.

The department is also planning to make it a punishable offence (in addition to the current citation for contempt of court) for bankrupts, who failed to file their Statement of Affairs to the department within 21 days after being declared so.

Haini said these reform plans would not only enable better management by both creditors and the department but would also keep the number of bankrupts in the country under control.

Haini also said it was worrying that out of the 218,561 bankrupts in the country, 60 percent were not even aware that they had been declared bankrupt.

Bankruptcy Trend in Malaysia

2010-08-03T00:00:00.000-07:00

According to a recent newspaper report there were 38357 bankrupts in the last five and a half year between the age of 25 and 44. The trend is that people who declared bankruptcy are getting younger. Here is the breakdown of those who declared bankruptcy from 2005 until May 2010:

Take-home messages

• A business venture can be successful or end in failure. The most important thing is not to put all the eggs in one basket. An emergency fund lasting three to six months to cover your normal expenses is a must.

• You can obtain a loan but it has to be included in you monthly cash outflow. If it is not within your budget. Don’t go for a loan to buy a car or a house. Save for a bigger down payment.

• You are not obligated to stand as a guarantor. You cannot control how another person manages his or her finance, so you cannot be sure that the person who gets the loan will honor the loan repayments fully. Do you like to pay for something you don’t own every month? This will happen when the borrower defaulted and he or she is no where to be found.

• Credit card is not for getting credit (The bank will be very happy if you do): The right way to use a credit card is to back up a dollar your charge to your card with a dollar in your bank account. At the end of the month you pay the amount due promptly and fully. The fact is that getting credit and incurring debt is easy but getting out of debt is very difficult.

• There are two things in life you cannot escape; that is death and tax. It is necessary to set aside an amount every month to cover tax payable.

10 Advantages of Credit Cards

2010-07-21T00:00:00.000-07:00

Are you thinking of giving up your credit cards? Don’t. Credit cards are useful financial tools when you know the proper way to use them. Here are ten ways to use your credit cards to your advantage and spend less.

1. Cashless spending: It is much safer than carrying a lot of cash in your purse. It is convenient when you are running short of cash to buy an urgent and essential item.

2. Use your cards instead of cash: Use your credit cards instead of the amount that you have set aside for your monthly spending. You pay less when you use a credit card hat gives you a discount for the purchases of your grocery and petrol. At the end of the month you just issue a cheque from the account where you keep the money for your monthly expenses. You can’t get a discount when you pay in cash.

3. Simplify your life: Let your credit card settle your utility bills, insurance premiums and other recurring expenses. There is no need to go to many places to pay for all these ongoing payments.

4. Big ticket item: Get zero interest installment plan for the purchase of a big-ticket item. You can stretch your payment up to 36 monthly installments without incurring interest. However, you have to make sure that you have included the amount in your monthly budget.

5. Free credit: To avoid late payment charges and interest on outstanding amount, pay the monthly bills fully and promptly. This is the way to enjoy credit free of charge for one month. Where else can you get credit to make purchases without interest and security?

6. Establish your credit worthiness: It is also a great way to establish your credit worthiness when you pay the monthly bills fully and promptly. It is an indication that you can be trusted to obtain credit and you have the means to pay and you do make payments promptly. When you apply for a loan in future you will be considered favorably.

7. Best for holidays: See the world with peace of mind just by carrying your favorite credit cards. You can withdraw cash in local currency at any ATM for sundry expenses. It is better than travelers cheques .Credit cards are accepted worldwide, take your cards along for a carefree holiday.

8. Online purchases: Online purchases are made possible with credit cards. It is safe and easy. If the transaction is not in order you can always dispute it and cancel the order with no charge to your card.

9. Track your spending: Each and every transaction that you have charged to your cards is itemized and listed in the monthly statement. You will know when, what and where you have spent your money. There is no way to check your spending if you use cash, unless you are willing to spend time to record where your money has gone.

10. A budgeting tool: You know precisely your spending pattern from your monthly credit card statements. It is a useful tool to budget and control your future spending.

The most important thing to remember is that you don’t use your credit cards to obtain credit and incur debt. Use your cards like using your own money. Stop charging it when there is no fund available.

Credit Card and Bankruptcy in Malaysia

2009-12-17T00:00:00.000-08:00

According to the Malaysian law you can become a bankrupt when the outstanding sum involved is RM30000 (previously it was RM10000) or more with a default period of six months or more. Defaulting on credit card payment is among one of the ways to be a bankrupt.

Among others, being a bankrupt, you cannot

• Hold any public office without the approval of the Director-General of Insolvency Malaysia (DGI)
• Pursue and court action without the DGI’s permission
• Leave the country without the court’s or DGI’s permission. The DGI will hold your passport.
• Be a company director or carry out your own business or be involved in the management of a company without the court’s or the DGI’s approval.
• Be involved in the management of a company or be an employee of a company that is owned by your spouse or close relatives and their spouses
• Be a committee member of any registered body.
• Open a bank account without the approval of the DGI

A bankrupt can work but he or she has to leave a certain percentage of his or her income to the DGI to repay debts. A person can be discharged from bankruptcy when he or she has settled debts in full.

The sensible way to avoid being a bankrupt is to pay your credit card bills fully and promptly every month upon receiving their statements.

Things to Consider before Getting a Credit Card

2009-12-14T00:00:00.000-08:00

Do not think that when you have a credit card your lifestyle will change for the better or you can spend freely. In fact when you don’t manage your credit card with care you will end up as a bankrupt.

Consider the following before acquiring a credit card:

1. For convenience and not for credit: Don’t think that you can increase your spending power by just paying the minimum amount and roll the balance to the following month and continue to spend in this way. A credit card is for convenience and not to obtain credit or to incur debt. The outstanding amount has to be settled fully and promptly when your receive the monthly statements

2. Take advantage of credit card benefits: You can take advantage of your credit card to reduce your normal expenses such as petrol and other grocery items. For certain cards you are given rebates for the purchase of these items.

3. Simplify your life: You can arrange with card issuer to pay for all your utility bills and insurance premium. Life is easier when you don’t have to issue too many cheques and go to too many place to settle your monthly bills and commitments

4. Self-discipline: Are you able to control your spending according to your budget?
Are you not an impulsive spender? You can keep a credit card if you follow closely to your monthly spending pattern with or without a card.

5. Track your spending: You can use your credit card as a tracking tool to monitor your spending. Review the monthly statements to trim unnecessary expenses.

When use correctly, a credit card is an asset and not a liability.

Central Credit Reference Information System of Malaysia

2009-12-10T00:00:00.000-08:00

There was a story in The Star telling that an applicant who changed her mind and never collected the credit card. However, RM5 was debited into the account. Because the card was neither collected nor used, it may be presumed that no statements were sent.

As often happens, a surprise awaited the individual concerned when her application for a housing loan at another bank was rejected because she had been “blacklisted” on account of the outstanding debt of RM5 that had been reported to the Central Credit Reference Information System (CCRIS).

According to the article, Credit Worthiness, there is no such thing in law as a blacklist described or defined anywhere or in any document. It is a word that has come to refer to arrangements made by individuals, groups or even institutions to create an “alert” system.

However, through the ignorance of some of the officers of lending institutions or institutions granting credit, and lack of appreciation of the role of such as alert system, its usefulness is not really appreciated and instead results in inconvenience. The purpose of such a list is not to condemn an individual just because his or her name is on it.

Its real purpose is to alert the organization to which a loan or other application is made as to some relevant aspects of the individual or organization’s past dealings with a view to a possible critical examination. The existence of such a list is to assist in the process of credit evaluation. This can only be done by asking the person concerned for an explanation with regard to the nature of the list.

The individual is put through unnecessary inconvenience for which there is no real remedy. This is because the repository of the information will merely claim storing and making available date. The lending institution will say that at that a stage, there is no contractual relationship that can be the basis of a wrongdoing.

The writer, Bhag Singh, recommends that given such a scenario, the welfare of the individual can only be protected by having institutions with better-trained officers and regulatory bodies which can exercise greater vigilance to safeguard the interest of the public.

Credit Report

2009-12-08T00:00:00.000-08:00

Your credit report contains your credit history and your personal information. Your credit record includes your credit accounts, loans, bankruptcies and late payments. Upon receiving an application for loan or credit from you, financial institutions can obtain your credit report to assess your credit-worthiness before approving your application. It is very important that your credit report is updated before making credit applications.

In Malaysia you can obtain your credit report from the Credit Bureau of Bank Negara Malaysia. It is housed in a computerized database system known as Central Credit Reference Information System (CCRIS).

In the past the Credit Bureau of Bank Negara Malaysia was empowered to disclose credit information only to financial institutions. With effect from March 2002, individual can request for his own credit record. However you can only apply for a credit report once in every 12 months. It is free of charge.

When you wish to ask for your credit report you can go to

http://www.creditbureau.bnm.gov.my and download Form CBS 01 (Credit Report Request Form) from Bank Negara Malaysia or Central Bank of Malaysia.

If you dispute on the information reported by the financial institutions in your credit report you can fill up another form, Request for Data Review. The Credit Bureau will investigate and notify the financial institution that had provided the disputed information together with all relevant data. The investigation and remedial process will normally take about a month to be completed. You will be notified of the outcome of the investigation. In the event that the disputed information is confirmed accurate, you are advised to refer the matter to the respective financial institution.

Merchants in Malaysia are Warned about Credit Card Transactions

2009-12-03T00:00:00.000-08:00

According to a recent report in New Straits Times, there are unscrupulous traders who transfer the two per cent surcharge, which they are supposed to shoulder to provide credit card payment services, on to their clients. Second Finance Minister Datuk Sri Ahmad Husni Hanadzlah says credit card users have been advised to report to the authorities if any merchant transfers the two per cent surcharge on any transaction to them. He adds that the best way is for buyers to report such cases so that quick action can be taken.

Subsequently a reader sends a letter to the editor of the newspaper asking about the appropriate agency to make report. I think what the reader can do is to approach the bank which the merchant has entered into an agreement to accept credit card payments. Inform the bank that the merchant has violated the merchant agreement. He will be able to identify the bank by looking at the charge slip. If he is unable to resolve the issue he should next approach The Financial Mediation Bureau to settle the dispute with documentary evidence.

Credit Card is Lucrative Business

Credit Card Disputes – Get Free and Professional Mediation

2009-12-01T00:00:00.000-08:00

Do you have a dispute with your credit card issuer and you are unable to resolve the issue? Look no further. Go to The Financial Mediation Bureau (Malaysia) for an amicable settlement.

The Financial Mediation Bureau is an independent body set up to help settle disputes between you and your financial services providers who are its members. It provides you with free, fast, convenient and efficient avenue to refer your disputes for resolution as an alternative to the courts.

The financial Mediation Bureau will assist you in other financial issues and not just credit card related. Among others, disputes relating to the following can be referred to FMB:

Personal and housing loans

ATM

Cash deposit machine

Hire purchase

Savings and current accounts

Fixed deposit

Internet banking

Insurance

Go to http://www.fmb.org.my to find out more about the bureau.

Credit Reporting Agencies in Malaysia

2009-11-26T00:00:00.000-08:00

The Credit Reporting Agencies Bill 2009 introduced and tabled at The Dewan Rakyat recently by Deputy Finance Minister Datuk Dr. Awang Adek Hussin is scheduled to be debated and passed during the current meeting of Parliament.

According to a report by New Straits Times, when it becomes law, private credit reference agencies such as Credit Tip Off Service Sdn Bhd (CTOS) will be controlled through registration and supervised by a registrar.

The bill will complement the Personal Data Protection Bill, which aims to protect and regulate the use of private data. The bill also seeks to ensure the credit reporting agencies and their officers will be responsible in compiling data and updating them. Often, this failure had resulted in many people, who had settled their debts or loans, remaining in the blacklist of banks.

However, credit agencies have to get written permission from customers when they require such information from the customer concerned for the first time through a notice. The notice should inform the customer who the information would be given to and if it is obligatory or voluntary for any of the information to be disclosed by the customer.

The agencies also cannot disclose information unless it has obtained permission from the customer. However, there is an exemption and information can be disclosed to prevent crime or when it is provided for under the law.

CIMB Petronas MasterCard- The Best Credit Card

2009-11-24T00:00:00.000-08:00

One of the best credit cards available in the market now is the CIMB Petronas MasterCard. As a card holder, I enjoy the following benefits:

No annual fee: This is a card with no joining or annual fee and there is no condition attached, as it has always been advertised that it is free for life.

Rebate of 2% on petrol: When you pay cash you pay the full pump price of RM1.80 per litre. However, when you pay by CIMB Petronas MasterCard you pay only RM1.764 in the following month .Just imagine you pay less and on top of it you get interest-free credit for one month. Apart from petrol I get 0.5% rebate for all other retail purchases.

Travel benefits: When you charge the full fare of your airline tickets, you get automatic travel insurance coverage, lost baggage and baggage delay insurance and reimbursement for immediate necessities in the event of flight delay and missed connection

Making payment is easy: I can do online settlement of my outstanding balances. I can also pay at any CIMB Bank counter or use their cheque deposit machine or I can post a cheque to them. The best part is that every time when I make payment I pay less. The 2% rebate on petrol and 05% rebates on other retail purchases are given and shown in the monthly statements.

Mesra card: Because you use Petronas you can join the PETRONAS Mesra Loyalty Programme for free and get a Mesra card. Points are collected each time you pump petrol or buy things at their Convenience Stores. You get 1 point for every litre of fuel purchases and 1 point for RM 1 spent on Qualifying Transactions at the Convenience Store at PETRONAS service stations.

Promotions: From time to time Petronas offers cash prizes and valuable cars to lucky customers of Petronas. I hope I can be the next lucky winner of a cash prize or an expensive car.

Interest and other charges: I don’t have to worry about interest charges because I pay fully and promptly every month.

If you are looking for a credit card especially a card to reduce your petrol expenses, get a CIMB Patrons MasterCard today. Get real rebates when you use the credit card and get reward points from your Mesra card when you pump petrol.

Debt Management – Get Free and Professional Help

2009-11-19T00:00:00.000-08:00

You need help urgently when the following situations describe your personal finance:

If you are not in control of your money;
Have more debts than you can manage;
If you are living on paycheck to paycheck;
Are only able to pay the minimum 5% on your credit card bills;
If you are taking cash advances from your credit card to meet your expenses;
Do not have any savings to meet personal or family emergencies;
If you have debt collector calling you regularly;
If you are being served legal notice of demand.

Where can you get free professional assistance in Malaysia? The answer is AKPK (Agensi Kaunseling dan Pengurusan Kredit) or Credit Counseling and Debt Management Agency. AKPK is an agency set up by Bank Negara Malaysia or The Central Bank of Malaysia to provide financial education, financial counseling and debt management for individuals.

AKPK offers a free Debt Management Programme to individuals who fall under thess categories:

Not an undischarged bankrupt
Individual unable to manage their own debts
Must have positive net income
Not under advanced legal action
No advanced litigation take by non-FI
No loans taken from institution not regulated by Bank Negara Malaysia
Loan exposure of

When you have enrolled in the DMP you have to:

Give up your credit cards
Change your lifestyle (modify budget/cash flow to live within means)
Make dedicated and prompt payments

To know more about AKPK you can go to their website at http://www.akpk.org.my

4 Types of People to Avoid Using Credit Cards

2009-11-12T00:00:00.000-08:00

Are you one of the following? If so, you should not possess credit cards. Here are the people and the reasons:

Gamblers: The best thing they can do is to give up gambling. With credit cards in hand they will pile up debt in no time by credit card advances. They always think that by just one more bet they will be able to recover all the losses in the past

Materialistic: They want to keep up with the Joneses. They have to have the latest in TV set, cell phone and sound system at home. Unfortunately, there is no way to keep up with the trend, because manufacturers are churning out the latest models almost every day.

Your credit cards have spending limit but there is no limit in what you want in life.

What they need are debit cards or prepaid cards and not credit or charge cards

Shopaholic: They are addicted to shopping. They can’t stop the compulsive nature to just shop and shop. What they need is counseling to get rid of the unhealthy habit and not credit cards.

Young graduates: They have just landed on their first job and they have also acquired their first credit card. They are excited to get their first spending experience on their credit cards. They were told not to worry about over spending because they could just pay the minimum amount. They do not realize that they are building up debt and leading their way to bankruptcy. What they need now are debit cards or prepaid cards to control their spending

If you think you can manage your spending within your budget and you want to pay the full amount promptly every month, go ahead and get yourself a charge card or a credit card.

4 Types of Plastic Cards to Make Purchases

4 Types of Cards for 4 Types of People

10 Tips to Get Extra Cash Instantly

2009-11-05T00:00:00.000-08:00

You have exhausted your emergency fund. And you have almost overdrawn your current account and there is only a few dollars left in your savings account. You need extra cash. First, identify internal sources of fund where you don’t have to incur charges or interest before your get funding from outside sources. Here are the ten sources of fund:

1. Cash your fixed deposits: Sacrifice your interest for a premature withdrawal of your fixed deposit. Take out the amount you need and deposit the rest into your savings account.

2. Your children’s savings accounts: There is substantial savings over the years in your children’s savings accounts. You may withdraw but remember to top up later.

3. Liquidate part of your investment: Look into your stocks, shares and unit trusts. Sell a small part of it to meet your cash requirements

4. Staff advance from your company: Salary advance is the quickest way to get cash without interest and charges. However, the amount will be deducted at the end of the month when you get your pay.

5. Cash value of your life policies: There is cash value in your life insurance policies. You can get a policy loan against the cash value. In fact, if one of the policies is investment-linked just do a partial redemption and you don’t have to repay. The policy is still in force.

6. Get a loan from your friends or relatives: You have to be thick-skinned. It is embarrassing to let your friends and relatives know your predicament. To maintain goodwill when you repay the loan, add a little extra.

7. Pawn your valuables: Don’t let those you know see you at the pawn shop. You can pawn your jewelry to meet your temporary needs

8. Get a personal loan from a bank: It may not be as fast as you think, but the banks are looking for people with good credit standing to give out personal loans. Be one of them. Interest will be charged to your loan and you have to repay in monthly installments

9. Get an advance from your credit card: You get immediate cash at a higher cost than a loan from a bank. You will be slapped with an advance fee and compounded interest as long as the amount is outstanding.

10. Borrow from a loan shark: This is the last resort. The interest rate is exorbitant. You have to make very sure to pay back fully on time or else this will be the beginning of your nightmare.

The best thing to do, however, is to earn some extra money to meet your cash requirements.

4 Types of Cards for 4 Types of People

2009-10-29T00:00:00.000-07:00

There are 4 types of card that you can use to make purchases. They are charge card, credit card, debit card and prepaid card. Each type of card is specially catered for different people.

Charge Card: This type of card has no credit limit and you have to pay the amount fully when the statement arrives. It is for the rich and famous. They have spending power beyond the credit limit and they are capable of settling the amount fully upon receiving the monthly statements. Their lifestyle demands a card that they can spend freely and it is only limited by their spending power as demonstrated by their spending pattern. American Express is such a card.

Credit card: People who can exercise self–restrained will find this type of card useful. They don’t do impulse buying and they limit their purchases to what they need and not what they want. They pay promptly and fully and not just pay the minimum amount. They incur no late charges and finance charge. Visa and MasterCard fall into this category

Debit card: This type of card is suitable for young graduates who have secured their first job with a decent pay and they want to have their first experience of using a credit card. The card is linked to their current or savings account so they will not overspend. They don’t run the risk of building up debt. You can’t use the card when your fund is exhausted. Visa and MasterCard are the issuers for this type of card.

Prepaid card: This type of card is for people who are budget conscious. They load the card with a specific amount for specific purposes and they spend accordingly. There is no overspending and there is no debt. You can get this type of card which is also issued by Visa and MasterCard.

Choose an appropriate card to suit your current lifestyle.

Related post:

4 Types of Plastic Cards to Make Purchases

Credit Cards and the Malaysian Budget 2010

2009-10-27T00:00:00.000-07:00

With effect from January 1, 2010 principal card holders and supplementary card holders of credit cards and charge cards will have to pay an annul service tax of RM50/- per card and RM25/= per card respectively. More and more people are using credit cards in Malaysia. The number of credit cards in circulation has increased from two million in 1997 to eleven million in August this year. This does not include 285,000 charge cards in use. Service tax of RM50/= was previously imposed with effect from January 1, 1997 and abolished in April 1, 2001. The latest service tax is to promote careful spending among Malaysian.

Credit card transactions growth dipped to 6 percent to RM38.9 billion in the first seven months of the year, compared with 18.2 per cent increase in the same period last year,

Individuals with credit card related debts seeking the services of the central bank’s Credit Counselling and Debt Management Agency increased by 38.6 percent to 7492 from a 75.9 per cent growth to 5406 in the same seven-month period last year. These accounted for 74 per cent of total cases under the Debt Management Programme.

For those people who are holding 5 or 6 cards, it means an extra expenses of RM250/= to RM300/=.just to keep the cards. It is time for them to reduce their cards to not more than two. Too many cards mean too much temptation to overspend and too many cheques to issue to settle debts from too many banks.

Credit Card is a Lucrative Business

2009-10-20T00:00:00.000-07:00

Financial institutions make money from cardholders all the way from the moment they receive their cards until the day they close their accounts. Further more, banks charge merchants a fee for accepting credit cards as payments for each and every credit card transaction.

Let’s take a look at all the credit card charges imposed on cardholders:

1. Annual fee: An annual fee of around RM150 is charged to your card every year.

2. Cash advance fees: 5% of the amount drawn, subject to a minimum of RM15/=

3. Late payment charge: 1% of the total outstanding amount, subject to a minimum of RM5/= and a maximum of RM75/=

4. Returned cheque fee: RM50/=

5. Finance charge: Finance charge for cash transaction is 1.5% per month or 18% per year. Finance charge for outstanding amount is between 13.5% and 17.5% per annum.

6. Replacement card: RM10/= for the first time and RM50/= for every subsequent replacement

7. Request for card statement: RM5/= per monthly statement

8. Request for sales draft: RM15/= per copy

9. PLUS/CIRRUS ATM withdrawal: RM10/= for each cash withdrawal.

10. PLUS.CIRRUS account enquiry: RM2/= for each transaction

11. Conversion for overseas transactions: The bank will impose 1% administrative fee.

12. Closing of account: RM10/= upon closure of credit card account with credit balances.

As for merchants who have signed up to accept credit cards as payment they are charged a merchant fee or a discount fee of around 2% for every sale transaction. A merchant with a monthly sales volume of, say, one million, a bank will deduct RM20, 000/ =.and remit the balance of 980,000/= to the merchant. Can you imagine the amount of fees banks can collect from retail chains like Giant, Carrefour, and Tesco every day?

In order to avoid all these charges, as a card holder, you have to make sure that you make payment promptly and fully every month and you have to take care not to issue bounce cheque.

5 Tips to Choose a Credit Card

2009-10-13T00:00:00.000-07:00

All the banks are going after you to sign up for one or more of their credit cards. How do you determine which one is the best for you? Consider the following 5 points to make up your mind:

Free For Life: Look for a card without charging annual fees. CIMB Petronas MasterCard is such a card. You can save around RM100/= to RM200/= per year.

Low interest rate: Check around to determine which card charges the lowest rate in interest on outstanding amount. This is not an important consideration when you pay credit card bills fully on time.

Rewards or cash back: You have to decide which one is your preference. Would you like to accumulate points to redeem for goods or you prefer to pay less with cash back or rebate? For me I would like to pay less at the end of the month to reduce my expenses and cash outflow.

Gas, airline miles or grocery card: It all depends on which one you use the most. When you are always on the road, get the CIMB Petronas MasterCard. When you do a lot of grocery purchases get the Giant-Citibank Credit Card You pay less when you use both cards for your petrol at Petronas and sundry purchases at Giant. If you are a frequent flyer you may wish to consider Air Asia Citibank Card and accumulate points and fly for free later.

Customer satisfaction: According to J.D. Power and Associates’ report about 2009 Customer Satisfaction With Credit Cards, they have identified the six key factors of interaction, fees and rate, billing and payment process, rewards, benefits and services and problem resolution. American Express ranks the highest among credit card issuers for a third consecutive year. Get a card with a financial institution that gives you the most customer satisfaction.

When you have a card, use it wisely. A credit card is for convenience and savings and not for credit. Pay fully and promptly every month to stay out of credit card debt

American Express Ranks Highest in Credit Card Customer Satisfaction for a Third Consecutive Year

HSBC credit card

7 Tips to Prevent Identity theft

2009-09-29T00:00:00.000-07:00

According to Wikipedia identity theft is a term used to refer to fraud that involves someone pretending to be someone else in order to steal money or get other benefits. The term is relatively new and is actually a misnomer, since it is not inherently possible to steal an identity, only to use it. The person whose identity is used can suffer various consequences when he or she is held responsible for the perpetrator's actions.

How do you prevent identity theft? Here are the top tips:

Your expired credit cards: Destroy not only your card but the chip as well. Cut your cards into pieces so that nobody can pick up any clues by rummaging through your trash.

Review your monthly statements: Check your monthly statement to ensure that all charges tally with your records. Notify the bank when you don’t receive your monthly bank or credit card statements.

Use your credit cards with care: Make it a habit that transactions are done in your presence; this is to avoid fraudulent uses of your cards.

Personal information: Do not give away personal information over the phone easily especially those relating to your credit cards and passwords.

Shop online with care: Shop only at secured sites, such as https:// with an ‘S’.

Check your credit status: Get you free credit reports online from Equifax, TransUnion and Experian or CTOS in Malaysia.

Keep your personal documents in a safe place: Your personal identification card can be subjected to fraudulent uses if lost. Your lost card can be used to obtain bank loan by someone else and the crook allows the loan to default. Eventually, you are declared a bankrupt without your knowledge. That is why you need to check your credit status from time to time.

Handle your credit cards and personal identification card with care to avoid needless identity theft.

Credit card scammers covet 3-digit security code