If there’s one thing financial experts and consumers can agree upon, it’s that credit card is like a double-edged sword: it can be the fastest way to being poor, and it can also come in extremely handy while allowing its users to save money for essential purchases.
Whether you’re team pro-credit card or team anti-credit card, there’s no denying that the plastics do come with their own special features that benefit you. They can be your best friend if you’re disciplined and savvy when it comes to controlling your spending, and they can be your worst nightmare if you’re bad at managing your money.
Besides having the discipline in spending and good money management, knowing the easiest ways to save money while using credit cards could help you in the long run.
These are the 4 easiest ways to save money while using credit cards:
1. Want to lower the costs of your loan? Play your cards right
You may not be qualified for a loan if you have an insufficient credit history, which is one of the things lenders would look at to determine your credit health and eligibility for the loan. To achieve an excellent credit score, credit cards would be some of the best tools to utilise.
Your smart credit card usage (including spending and consistent timely repayments) will affect your credit score positively. Also, the higher your credit score, the lower your loan’s interest rate will be, thus helping you to save in the long run. The key is to always pay your credit card bills on time, never miss them, pay more than the minimum amount due, spend wisely, and basically have a positive account activity.
So if you want to qualify for a loan or take advantage of more favourable repayment terms like lower interest rate or flexible tenure, play your cards right!
2. Unable to pay a lump sum? The Easy Payment Plan feature allows you to pay for products or services with a 0% instalment plan
Those of you who urgently need pricey things like furniture or essential household products like a refrigerator or air conditioner, paying lump sum by cash may not always be possible (or even ideal), especially when you have to buy a few things at once. In such situations, most people would turn to credit cards to make their purchases.
For this purpose, why not take advantage of the Easy Payment Plans (check out the best options on BBazaar), which are available on many credit cards in Malaysia? Basically, such plans allow you to:
- Convert your purchases at participating merchants into affordable monthly instalments (with 0% interest for a short tenure)
- Choose from a wide range of tenures according to your convenience
- Pay a low interest rate instead of the finance rate attached to your card
- Maximise your savings by paying less interest (for a longer tenure)
You can simply apply for this facility by contacting the bank via its customer service number or by sending in an online request. Take note that if you miss a payment, you will be charged an interest fee equal to the retail finance charges or interest rates imposed by the bank. Also, some banks charge an early settlement fee and some don’t.
3. Want to save more when you use your credit card overseas? Get the right card
All credit cards can be used for carrying out transactions overseas, but you will be charged a small surcharge called overseas transaction fees. Additionally, you will be charged a nominal amount as mark-up fees.
Unfortunately, all cards in Malaysia come with a foreign transaction fee. However, there are a few cards, like the Hong Leong I’m Credit Card or the OCBC Titanium Mastercard (Blue or Pink) that comes with 0% mark-up fees. If you like to shop overseas, you can use such cards to shop when you’re travelling abroad and save up on the mark-up fees.
4. Want to save on daily essentials? Use cashback credit cards
If you normally spend excessively on cabs, fuel, or even something as important as groceries, a cashback credit card can be the perfect tool for you to save on your daily retail spends. When you use a cashback card for any retail transaction, you earn a part of what you spend as a cash rebate. For most Malaysian credit cards, the rebate you earn usually gets credited automatically into your card account on a monthly basis.
For example, the Citi Cash Back Card (full review here) gives 10% cashback on selected groceries, petrol refills, dining spends and Grab rides (capped at RM10 per category) when your total monthly balance exceeds RM500.
Similarly, the Alliance Bank You:nique Rebates (full review here) gives 3% unlimited cashback on all your spends when your total monthly outstanding balance falls anywhere between RM2,001 and RM3,000.
Also, the Standard Chartered JustOne Platinum (full review here) earns 15% cashback (capped at RM85) on online spends, petrol refills and automated bill payments when your total monthly outstanding balance exceeds RM2,500.
Also, don’t forget to check out online cashback shopping platforms like RebateMango, Shopback, or Milkadeal. From groceries to electronics, you’ll find practically anything you need on such platforms.
And if you’re on the lookout for a new credit card, you’ll be well-advised to take advantage of our superb ongoing promotional offer! Get up to RM500 worth Petron Gift Voucher and Touch'N'Go card, absolutely FREE,, when you apply for a Citi, Alliance Bank or Standard Chartered Bank credit card, right here on BBazaar! APPLY TODAY! T&Cs apply.
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