Just like doing anything for the first time, getting your first credit card can be a nervous experience. However, it’s a massive milestone in the lives of young adults, and you should make smart decisions when choosing your first credit card.
You might be overwhelmed by the choices of different banks and cards, but there’s definitely a card that is suitable for you. Continue reading this guide to find out how to your first credit card!
Minimum income requirement
In Malaysia, you’ll need at least a minimum annual income of RM24,000 before you can apply for a basic credit card. The higher your salary is, the more benefits you can get from your credit card. That said, that doesn’t mean only good credit cards are only reserved for the rich. Plenty of banks does consider the plights of young adults and adjust the minimum income requirements accordingly. Even if you’re a fresh graduate, usually you can still apply for more than half of the credit cards in Malaysia if your annual income is between RM24,000 to RM36,000.
Effective interest rate (EIR) and annual fee
Getting your first credit card is excellent, but if you’re a fresh graduate, it shouldn’t burden you financially.
Unless you are financially stable, look for credit cards with a low-interest rate and preferably no annual fees. Some cards can charge a high-interest rate of 15%, and that’s too much if you just joined the workforce. You can also look for cards that have zero annual fees.
You should always be careful and read the terms and conditions when applying for a credit card. While some cards claim they have no annual fees, there could be a hidden condition to it. For example, the fee is only waived if you use your credit card a certain number of times.
Your spending habits
The ideal credit card for you depends on your lifestyle. Ask yourself, do you travel often? Do you prefer online shopping? Do you spend mostly at the weekends?
Each credit card in Malaysia tailored for different individuals, and they come with their perks and benefits. Think of your spending habits and choose your credit card based on your lifestyle.
There’s no need to be intimidated if it’s your first time getting a credit card. All you need to do is plenty of research, and you’ll find the best credit card for you in no time!