Everything You Know About Credit Cards Are Wrong: 3 Tips You Shouldn’t Ignore

As the use of credit cards in Malaysia increases year after year, you may have heard warning testimonials about credit cards, e.g., how easy it is to fall into debts when owning one (or several). Yes, these stories could be true, but you shouldn’t be put off by them. Credit cards are tools: they can’t make you go bankrupt if you don’t allow it to happen.

As a rule of thumb, you need to be savvy about your money to avoid debts. Being aware of where your money comes from and where it goes, will help a lot in planning your financial stability. Also, you will need to manage your financial tools, including your credit cards. So here we share some simple and practical tips to help your first steps to being a credit card-savvy person.

 

  1. Remember that a credit card can be an excellent tool.

Yes, a credit card can actually be a helpful and beneficial tool. And it does not have to be a curse to you if the credit card is managed properly and used responsibly. The reason is that it can help you to build good credit for when you need it in the future.

However, a credit card can also get a lot of people into trouble. This is especially true when young adults have not taken the time to be informed about credit cards properly. A credit card should not be used as a way of life for every purchase you make. Doing this in the long term will hurt your finances deeply, due to the fact of having to pay substantial interests. Financial expert Dave Ramsey says that when it comes to credit card spending: if you cannot pay a purchase in cash, don’t put it on your card.

Remember that a credit card can be an excellent tool.

 

  1. You should not choose just any card that is on the market.

Your primary objective is to be informed about various cards that are available in Malaysia today. You need to carefully consider the perks, the cautions, the benefits, the interest rates on purchases, cash withdrawals, and other related things. You need to decide if you want cash back or prefer to receive air miles as incentives when you make purchases.

Consider if the purpose of your credit card will be for the possibility of being able to provide financing for an expensive yet needful purchase. Taking all of these essential elements into careful consideration will lead you into making a wise and informed decision about which card is right for your situation. You can also contact a financial advisor if you need help in choosing the best credit cards in Malaysia that are suitable for your needs.

 

  1. Be aware of your credit history.

It really is no surprise that those credit cards that seem to offer the best terms and most awesome rewards are highly targeted to those who possess excellent credit scores. Therefore a great credit card is really based on your credit score. If your credit score is not so great, your application to a great credit card could be turned down. So you should find out what your credit score is. If you’re not sure how to do this correctly, contact a financial expert.

Be aware of your credit history.

 

Credit cards are not evil; they’re tools that can work for your financial health. Before anything else, know how to manage your money. Then, learn how to use your credit card(s) to your advantage. Careful planning will help you from getting into credit card hassles that you don’t want or need.