Hi Sifu,

Im thinking of getting a credit card. Work almost 3 years but only use Debit Card. Here are details and perhaps you could give some recommendation which credit card is suitable for starters. The main reason to get credit card is for wedding preparation.

1. Annual Income: RM38K

2. Free Lifetime Annual Fee: A Must

3. Card required for: For wedding preparation

4. Existing credit cards if any: Nill

5. Preferred Bank or Considering CC from banks: Maybank, CIMB, or any that provide good service,

6. Others: Payment option can be thru internet banking.

7. Fixed expenses per month with the card: Petrol RM260, TnG RM230,

8. Non-fixed expenses but recurring in RM: Nill

My guts tell me that credit card is better option that personal loan. Please guide me. I am noob in credit card, but I manage my finances very well until now

This post has been edited by Sizty: Sep 19 2012, 01:46 PM

[quote=Gen-X,Sep 19 2012, 02:16 PM]
I guess for your case OCBC Titanium MasterCard would be good as you get 5% cash back for petrol and utility bills. Or look into Maybankard 2 Cards.

However, let me point out to you that having a credit card will also entice you to spend more. And your statement about personal loan makes we worried. Good that you have balance your finance previously and you should try not to go into debt, once into the hole of debt, kinda hard to get out. If you cannot afford to pay the things now (save enough money in the last 3 years), what makes you think you can afford to pay back your loan later? If you really need a loan for your wedding, try to borrow from your relatives at 0%.

My strategy using CC is : Buy stuff RM800 and pay back within the grace period.

Having said that, don't know if I should point out to you about Balance Transfer.... Because you are spending money on your wedding expenses, I am going to let you know a way to get 0% interest loan. This is what you should do SUBJECTED that you can afford to pay off your loan in 6 months time, else do not read any further.

1. go apply for OCBC or Maybankard 2 Cards. Charge your expenses to the card mentioned here.
2. At the same time go apply for CIMB credit card which is now offering 0% Balance Transfer for 6 months plan.
3. Do a balance transfer from the cards mentioned in item 1 above to CIMB and enjoy 0% loan for 6 months.

Considering the balance transfer but must consider also the processing fee.


[quote=Titan_Gunners,Sep 19 2012, 02:49 PM]
Although you can get credit card as ur backup, but pls bear in mind...Spend within ur limit...
Whatever amount that u swipe, u need to pay for it.
Do not be one of my fren, he spend beyond limit for his "Classy" wedding.
End up, deep inside the debt trap after that...
Are this worth it??

[/quote]

That's what Im intending to do. Spend within limits. Actually Im comfortable using cash money instead of cc/personal loan. Yes there are some perks when using CC, but Banks need to get some profit too.