Things to Consider before Getting a Credit Card

Do not think that when you have a credit card your lifestyle will change for the better or you can spend freely. In fact, when you don’t manage your credit card with care you will end up as a bankrupt 

Consider the following before acquiring a credit card:


1. For convenience and not for credit: Don’t think that you can increase your spending power by just paying the minimum amount and roll the balance to the following month and continue to spend in this way. A credit card is for convenience and not to obtain credit or to incur debt. The outstanding amount has to be settled fully and promptly when you receive the monthly statements

2. Take advantage of credit card benefits: You can take advantage of your credit card to reduce your normal expenses such as petrol and other grocery items. For certain cards, you are given rebates for the purchase of these items.

3. Simplify your life: You can arrange with the card issuer to pay for all your utility bills and insurance premium. Life is easier when you don’t have to issue too many cheques and go to too many places to settle your monthly bills and commitments

4. Self-discipline: Are you able to control your spending according to your budget?
Are you not an impulsive spender? You can keep a credit card if you follow closely your monthly spending pattern with or without a card.

5. Track your spending: You can use your credit card as a tracking tool to monitor your spending. Review the monthly statements to trim unnecessary expenses.


When used correctly, a credit card is an asset and not a liability.

Central Credit Reference Information System of Malaysia

Central Credit Reference Information System

There was a story in The Star telling that an applicant who changed her mind and never collected the credit card. However, RM5 was debited into the account. Because the card was neither collected nor used, it may be presumed that no statements were sent.

As often happens, a surprise awaited the individual concerned when her application for a housing loan at another bank was rejected because she had been “blacklisted” on account of the outstanding debt of RM5 that had been reported to the Central Credit Reference Information System (CCRIS).

According to the article, Credit Worthiness, there is no such thing in law as a blacklist described or defined anywhere or in any document. It is a word that has come to refer to arrangements made by individuals, groups, or even institutions to create an “alert” system.

However, through the ignorance of some of the officers of lending institutions or institutions granting credit, and lack of appreciation of the role of such an alert system, its usefulness is not really appreciated and instead results in inconvenience. The purpose of such a list is not to condemn an individual just because his or her name is on it.

Its real purpose is to alert the organization to which a loan or other application is made as to some relevant aspects of the individual or organization’s past dealings with a view to a possible critical examination. The existence of such a list is to assist in the process of credit evaluation. This can only be done by asking the person concerned for an explanation with regard to the nature of the list.

The individual is put through unnecessary inconvenience for which there is no real remedy. This is because the repository of the information will merely claim to store and making the available date. The lending institution will say that at that stage, there is no contractual relationship that can be the basis of wrongdoing.

The writer, Bhag Singh, recommends that given such a scenario, the welfare of the individual can only be protected by having institutions with better-trained officers and regulatory bodies that can exercise greater vigilance to safeguard the interest of the public.

Related post:

Credit Report

Credit Report

Your credit report contains your credit history and your personal information. Your credit record includes your credit accounts, loans, bankruptcies, and late payments. Upon receiving an application for a loan or credit from you, financial institutions can obtain your credit report to assess your credit-worthiness before approving your application. It is very important that your credit report is updated before making credit applications.

In Malaysia, you can obtain your credit report from the Credit Bureau of Bank Negara Malaysia. It is housed in a computerized database system known as the Central Credit Reference Information System (CCRIS).

In the past, the Credit Bureau of Bank Negara Malaysia was empowered to disclose credit information only to financial institutions. With effect from March 2002, an individual can request for his own credit record. However, you can only apply for a credit report once every 12 months. It is free of charge.

When you wish to ask for your credit report you can go to

http://www.creditbureau.bnm.gov.my and download Form CBS 01 (Credit Report Request Form) from Bank Negara Malaysia or Central Bank of Malaysia.

If you dispute the information reported by the financial institutions in your credit report you can fill up another form, Request for Data Review. The Credit Bureau will investigate and notify the financial institution that had provided the disputed information together with all relevant data. The investigation and remedial process will normally take about a month to be completed. You will be notified of the outcome of the investigation. In the event that the disputed information is confirmed accurate, you are advised to refer the matter to the respective financial institution.

Merchants in Malaysia are Warned about Credit Card Transactions

Merchant Agreement

According to a recent report in the New Straits Times, there are unscrupulous traders who transfer the two percent surcharge, which they are supposed to shoulder to provide credit card payment services,  to their clients. Second Finance Minister Datuk Sri Ahmad Husni Hanadzlah says credit card users have been advised to report to the authorities if any merchant transfers the two percent surcharge on any transaction to them. He adds that the best way is for buyers to report such cases so that quick action can be taken.

Subsequently, a reader sends a letter to the editor of the newspaper asking about the appropriate agency to make a report. I think what the reader can do is to approach the bank in which the merchant has entered into an agreement to accept credit card payments. Inform the bank that the merchant has violated the merchant agreement. He will be able to identify the bank by looking at the charge slip. If he is unable to resolve the issue he should next approach The Financial Mediation Bureau to settle the dispute with documentary evidence.

Credit Card Disputes – Get Free and Professional Mediation

Source:http://empowerla.org/city-attorneys-dispute-resolution-program/


Do you have a dispute with your credit card issuer and you are unable to resolve the issue? Look no further. Go to The Financial Mediation Bureau (Malaysia) for an amicable settlement.

The Financial Mediation Bureau is an independent body set up to help settle disputes between you and your financial services providers who are its members. It provides you with a free, fast, convenient, and efficient avenue to refer your disputes for resolution as an alternative to the courts.

The financial Mediation Bureau will assist you in other financial issues and not just credit card related. Among others, disputes relating to the following can be referred to FMB:

Personal and housing loans

ATM

Cash deposit machine

Hire purchase

Savings and current accounts

Fixed deposit

Internet banking

Insurance

Go to http://www.fmb.org.my to find out more about the bureau.

Credit Reporting Agencies in Malaysia

The Credit Reporting Agencies Bill 2009 introduced and tabled at The Dewan Rakyat recently by Deputy Finance Minister Datuk Dr. Awang Adek Hussin is scheduled to be debated and passed during the current meeting of Parliament.

According to a report by New Straits Times, when it becomes law, private credit reference agencies such as Credit Tip Off Service Sdn Bhd (CTOS) will be controlled through registration and supervised by a registrar.

The bill will complement the Personal Data Protection Bill, which aims to protect and regulate the use of private data. The bill also seeks to ensure the credit reporting agencies and their officers will be responsible for compiling data and updating them. Often, this failure had resulted in many people, who had settled their debts or loans, remaining on the blacklist of banks.

However, credit agencies have to get written permission from customers when they require such information from the customer concerned for the first time through a notice. The notice should inform the customer to whom the information would be given to and if it is obligatory or voluntary for any of the information to be disclosed by the customer.

The agencies also cannot disclose information unless it has obtained permission from the customer. However, there is an exemption and information can be disclosed to prevent crime or when it is provided for under the law.

CIMB Petronas MasterCard- The Best Credit Card

One of the best credit cards available in the market now is the CIMB Petronas MasterCard. As a cardholder, I enjoy the following benefits:

1. No annual fee: This is a card with no joining or annual fee and there is no condition attached, as it has always been advertised that it is free for life.

2. Rebate of 2% on petrol: When you pay cash you pay the full pump price of RM1.80 per litre. However, when you pay by CIMB Petronas MasterCard you pay only RM1.764 in the following month. Just imagine you pay less and on top of it, you get interest-free credit for one month. Apart from petrol, I get a 0.5% rebate for all other retail purchases.

3. Travel benefits: When you charge the full fare of your airline tickets, you get automatic travel insurance coverage, lost baggage and baggage delay insurance and reimbursement for immediate necessities in the event of flight delay and missed connection

4. Making the payment is easy: I can do an online settlement of my outstanding balances. I can also pay at any CIMB Bank counter or use their cheque deposit machine or I can post a cheque to them. The best part is that every time when I make a payment I pay less. The 2% rebate on petrol and 05% rebates on other retail purchases are given and shown in the monthly statements.

5. Mesra card: Because you use Petronas you can join the PETRONAS Mesra Loyalty Programme for free and get a Mesra card. Points are collected each time you pump petrol or buy things at their Convenience Stores. You get 1 point for every litre of fuel purchases and 1 point for RM 1 spent on Qualifying Transactions at the Convenience Store at PETRONAS service stations.

6. Promotions: From time to time Petronas offers cash prizes and valuable cars to lucky customers of Petronas. I hope I can be the next lucky winner of a cash prize or an expensive car.

7. Interest and other charges: I don’t have to worry about interest charges because I pay fully and promptly every month.

If you are looking for a credit card especially a card to reduce your petrol expenses, get a CIMB Patrons MasterCard today. Get real rebates when you use the credit card and get reward points from your Mesra card when you pump petrol.

Petrol Price History RON 95:

12/05/2009   RM 1.75
  1/09/2009   RM 1.80
16/07/2010   RM 1.85
  1/12/2010   RM 1.90
  3/09/2013   RM 2.10
  2/10/2014   RM 2.30
  1/12/2014   RM 2.26
  1/01/2015   RM 1.91
  1/02/2015   RM 1.70
  1/03/2015   RM 1.95
  1/06/2015   RM 2.05
  1/07/2015   RM 2.15
  1/08/2015   RM 2.05

Source: http://blog.galvintan.com/malaysian-fuel-price-history/