Thinking of getting a credit card for student? Getting your first credit card marks another milestone as you’re busy adulting. But always remember, like Uncle Ben from Spiderman says, “With great power comes great responsibility”! While we get to start having “extra credits” at our disposable, having lousy spending habits can spur an uncontrollable debt.
Now that we’re gone past the warning, credit cards do come with various benefits we can use. For example, cash backs, getting rewards and many more. Plus, having extra emergency funds for a rainy day can be extremely helpful.
But with so many commercial banks available in Malaysia, one might feel overwhelmed trying to choose a credit card.
Don’t worry! You’ll need to consider a few things before you can choose the perfect card suitable for your needs!
Let’s go through the first tips:
Which Credit Card Can Your Salary Get You?
Starting your hunt for a credit card for student with minimal salary requirements is usually a great way to cut down the choices. This means that if you’re an undergraduate, applying a credit card is not possible right now. However, if you have salary that meets the requirement, then you’re well on your way.
You can’t apply for a credit card if your salary isn’t high enough to match its requirements. The higher the minimum income level, the more desirable the card’s benefits are.
However, this does not imply that newcomers have very few options! Most banks lower their minimum income requirements to accommodate recent college graduates. Getting a credit card these days is a lot easier than the previous generation.
High-paying income credit cards typically have the most generous rewards programmes. There are, however, several beneficial entry-level credit cards that might help you maximise your spending.
Look for Credit Cards with No Annual Fees and Low Interest
As a fresh graduate entering the workforce, you’ll be getting your feet wet in money management and bills to pay.
Your credit card mustn’t burden your financial situation. Selecting a credit card with the lowest interest rate and zero annual fees is ideal.
Interest rates that are more than 15% on credit card bills are costly. Hence, Paying your credit card balance in full whenever possible is a wise thing to do. Here’s a tip, look for credit cards with no annual fees or “free for life,” as the banks like to phrase them.
There are a lot of credit card companies out there that claim to waive annual fees if you use the card a certain number of times in a calendar year. Or they limit the fee waiver to those who spend a certain amount on the card in a year. It’s best if you are careful here.
Please stay away from cards that have ambiguous terms for the time being. Especially when it comes to waivers based on the amount you spend annually. Because it can ‘motivate’ you to spend more, you might rack up some debt trying to reach a specific amount.
Credit cards with “12 swipes a year” requirements are probably the best choice here. Since it is realistic to meet 12 swipes per year by using your card for necessities like gas station purchases or grocery store purchases. Nevertheless, you might find some decent credit cards that are free for life. (which is an ideal selection)
Credit Card’s Benefit that Fits your Lifestyle?
The fun begins now that you’ve narrowed your options down to a few cards. You get to pick and choose whatever rewards are most important to you this time.
Cashback, reward points, and Airmiles are just a few of the perks that credit cards in Malaysia have to offer. There are a variety of credit cards on the market, and some offer more advantages than others. For example, some cards may have better cashback rates or more generous bonuses than others.
Experienced credit card users have several cards that offer different benefits. They choose which one to use on any given occasion based on their preferences. In contrast, you should not be looking to do the same as a first-time credit card user!
Focus on your spending habits and pick a credit card that will give you the most bang for your buck.
Get a card that prioritises weekend cashback if you shop the most on the weekends. Alternatively, if you prefer to shop online, consider credit cards that provide the best cashback rebates.
Air miles are usually reserved for the more expensive credit cards, while rewards points might be challenging to redeem because banks have different rates of return. So, it might be a good idea for first-time cardholders to focus primarily on cashback rewards.
First Credit Card For Student All Set!
Getting your first credit card requires hard work and research, so buckle up and get to it.
To save time, you can use a comparison tool to check how different credit cards compare without visiting each bank’s credit card page one at a time.
Of course, applying for a credit card is the next step after determining which one you want.
Nowadays, applying for a credit card online is one of the quickest methods available.
Don’t get carried away with your newfound financial power once you receive your first credit card for student in the mail.
Depending on how you use it, a credit card can either be a friend or a foe. Suppose you’re careful with your money and don’t overextend yourself. In that case, you’ll be able to reap the rewards of your good decisions.
Check out more tips to enhance your student life and make studying awesome!
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