A wise credit card(s)holder should have enjoyed some benefits for using the facility. But, how much have you benefitted from it so far? Can you imagine after spending almost RM10,000 using the card, and the only rewards you get is an RM50 voucher for fuel?

With the false preconception that the more you spend, the more reward points you get, it might lead to unnecessary spending. In fact, not all spending will entitle you to desired cash back or points.

One of them is topping up your e-wallet such as Boost and Grab using a credit card. Some banks have stopped giving cashbacks for such transactions a few months ago. In short, do check from your credit card issuing bank for any recent updates. 

Are you supposed to get a credit card?

As you enter working life, it is inevitable for most to manage their own finances including acquiring loans for cars, houses etc. 

Building a credit score

Having a credit card is one of the initial steps into building your credit score after you enter the working life. A good personal credit score will be determined based on borrowing amount and discipline in repaying them on time.

Manage debt under a single payment

It also helps you to manage debt by consolidating your debt under a single payment. 

If you need to carry over your balances to the next month, look for a balance transfer credit card with a low or 0% interest rate. But make sure you are able to repay your balances within the promotional period – otherwise, you can incur high penalties.

Emergencies

Cover emergencies. There will be a time that you need to pay high sum money such as car breakdown or hospitalisation. 

Earn cashbacks and rewards

Earn cashback and rewards. Look for a card that gives you cashback or miles, or one that has a good rewards programme.

Which credit card should you apply?

It depends on your annual incomes. The common rules are to opt for zero annual fee, lower interest rates and other rewards according to your lifestyle.

Each card has different perks. Look through offers from each and every bank. Some customised for families who often spend their money for grocery, petrol among others. 

Here is the link to compare credit cards i-Money 

If you have the ability to repay the loan on time. Some banks also offer credit cards that come with ZERO interest loan amounts up to RM15,000 to be paid within 12 years. With a sum of money, one can reinvest it and let it multiply the value over time. Check out Standard Chartered- cheque-on-call (the promotion ends Dec 31)