In the past, having not enough cash means you’ll have to save up until you can buy the item you want and pay the full amount up-front. Credit has changed that landscape. Today, credit usage is so rampant and sometimes so irresponsible that it has gotten the bad rap from financial advisers, but there are benefits to using credit, too, if you know how to take advantage of it.Reasons to Use Credit It’s Convenient.
Using credit cards makes things so convenient. You needn’t withdraw money from the ATM every time you run out of cash, thus saving you the RM1.00 MEPS charge and the GST imposed on it. That’s RM1.06 saved for every time you could afford to go [...]
More often than not, we see red when we look at our bank account balance. If you are not managing your money well, you may be scratching your head as to how you ended up in this predicament.
It’s very disheartening to see red marks on our bank account balance, and it’s even worse if you’re scratching your head, wondering how and when it got to be there! Often it’s due to poor financial management, which luckily can be learned and habitualised. Firstly, though, you’ll need to pinpoint the reasons behind your current in-debt status. Here are six reasons why you’re in debt.You Spend More Than You Earn
It is often as simple as that. One of the [...]
Some countries allow you to set your own spending limit on your credit card. Unfortunately, in Malaysia you’ll neither be able to do so nor authorise a user to ‘piggy-back’ on your card, but spending limits are still imposed on you.
If you earn less than RM36,000 per year, your maximum spending limit is controlled by Bank Negara Malaysia (BNM), but otherwise, it’s at the discretion of the banks.Get to know your credit card limit
As of 2011, BNM imposed new measures on applicants who earn less than RM36,000 per year, or an average of RM3,000 per month, in a bid to shore up financial and debt problems among cardholders. The two conditions [...]
Your credit score reflects your ability and reliability to repay your debts. Lending institutions, largely banks, use your credit score to determine your eligibility for loans and the interest rates you’ll receive, among other perks. That’s all you need to know about it…or is it really? What if what you think you know is actually wrong?Myth 1: Going Cash-Only Ensures a Good Credit Score
Sure, dealing entirely with hard cash is one way to not fall into debt, but it proves absolutely nothing to creditors regarding your ability to repay credit.
Your credit score is zero because you’re not dealing with credit at all! For some of us, going cash-only [...]