Hey, look at you. You’ve gotten your first credit card (after that long spiel from the bank and those multiple phone calls… Err, do you know what you really signed up for?) and you’re probably feeling a little bewildered. You’ve gone from slogging it out at Uni, your first job, and now you’re finally making your way to some sort of financial independence. It’s these little victories that make up the rite of passage to adulthood; this is what they call “adulting“, we suppose, but it’s also the watershed period: Of you finally being able to take on some financial responsibilities. Yay!
Having a credit card definitely has its benefits (Swipe. Wave. Sign. All the above = yay, new stuff!) but it also means a boatload of responsibility. And the last thing you want to do is get yourself right into debt before the year end (interest can snowball and you can rack up a The Credit Card Bill That Will Never Be Paid Off), which lands you right back at square one.
Thankfully, here are some really honest and really helpful tips that BBazaar Malaysia has provided. FYI — you can hit up BBazaar to get more information on financial products like loans, insurance, credit cards, mutual funds and more because they’re completely neutral (AKA not led by a bank or any other financial institution) and completely accessible. For now, scroll down to take a look, digest, and see whether you really need to hit “Add To Cart” on those really cute pair of shoes. And, err, the last tip is the most important. You’ll see what we mean.
Credit Card tip #1: lower your limits
Okay, so first thing’s first, you need to know your limits, set it, and not max out your credit card. At all. Here’s what BBazaar has to say:
“Having a credit card with a high credit limit might make you feel invincible at times. Always make sure you have sufficient money to repay the full amount. Even if you have sufficient savings to make repayments, if you are getting close to maxing out your card, it’s advisable to stop using it as you may need the extra credit for an emergency.
“Credit card purchases will usually be declined if it exceeds your credit limit. You can call the bank to request for a temporary credit limit increase, but you’ll need to take note of the new due dates for repayment. Otherwise, the fees and finance charges will be hefty!”