Tag Archives: credit card

New rules for credit card holders in Malaysia

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Bank Negara Malaysia(the central bank of Malaysia) regulates the new rules for credit card holders in Malaysia,eventually the new rules are more specific to low income class.By tying up the credit policies,Bank Negara will be able to reduce the risks of inflation in the country and bankruptcy issues on individuals.The details are:

1.Minimum income requirement of applying credit card is RM24,000 per annum.

2.For cardholders earning RM36,000 or less per annum:

(a)only can hold credit cards from two issuers.For those who have more than 2 cards currently,they are given to choose two preferred issuers before the end of  this year.Cardholders will be given at least 2 years to pay the debts on the cards cancelled for the purpose of meeting the requirement.

(b)the maximum credit limit should not exceed 2 times of monthly income per issuer.For the outstanding balance over that maximum credit limit,a grace period of 2 years will be given to them to meet the new requirement.

All above rules are affected immediately.

BNM also announced that Further Enhancements to Credit Card Infrastructure Security will run by steps.Effective 1 January 2012, transaction alerts via Short Messaging Service (SMS) will be implemented by card issuers for their cardholders after transactions are performed. This will be followed by the implementation of the Personal Identification Number (PIN) verification for all card transactions from 1 January 2015 onwards.

I support the move of BNM of controlling the credit market to make it grow stable and healthy.

 

 

Decreasing on charges of credit card

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IBMM(Institute of Bankers Malaysia) announces that from March 31 2009,annual interest rate of credit card will decrease up to 1.5% and late payment penalty/rate will be charged from RM5 up to RM75.

The detail of interest rate will be:

Credit Record

Good(first tier)

Fair(second tier)

Bad(third tier)

    

Old Rate

15%

17%

18%

    

New Rate

13.5%

16%

17.5%

 

I think this is a policy to reduce the burden of people in this bad financial position.At the same time,it could be treated as one of reflationary policies though it may encourage evil trends like over-consumption.

Currently there are RM23 billion credit card debts in Malaysia and if banks cannot well-control and collect those debts,they will face some serious problems such as a huge number of bad debts occurred.Thus,less cost on using credit cards doesn’t mean that we can use credit card freely.When we enjoy this benefit,we also need to know the importance of having a good consumption custom.We have to remember ‘SMART SPENDING’.

First time withdraw funds from PayPal(2)

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I applied to withdraw funds from PayPal to my credit card account last week.Just now I checked the balance of my credit card and recognized that the transfer has been successful.

hlb1

Compared with the pound funds which was transferred.

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So the exchange rate would be 443.29/66.59=RM6.657/pound(today is 6.74).I think it is quite ok,right?It almost takes 5 days and is strictly within the policy.Actually once the transaction is done,”Recent Activity” record in PayPal will be updated with “Completed” status”.

pp5

By the way,because all those money is earned by blogging,therefore it should be treated as a milestone. :)

First time withdraw funds from PayPal

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I wanted to withdraw funds from PayPal to my debit card account.But unfortunately that all my debit card applications were declined by the banks.And the last chance is Tune Card,which is finally to be told that can’t be used on transactions from PayPal.

So I decided to transfer those funds to my credit card account so that to be against with my balance in order to leave more available balances to deal with the upcoming expenses in Shanghai.

The procedures are quite simple.Firstly,just login into my own account and you can easily find the ‘withdraw’ button on the top raw there to click it.

withdraw

The next page is telling you the processing days and fees.

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Choose the method which you want to withdraw to:”US bank account” OR “Card“(inclusive with credit card and debit card).At last,you will turn to a page which need fill up the withdrawal amount.By the way,there are also providing some notes that may be related with you so that you’d better to take some time to have a look at it.

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After completing to write that amount,”continue” and there will be a final information for your transaction.Till here,you’ve done all and what you need to do is to wait for 5-7 days to process your transaction.

This is my transaction history for the latest withdrawal.

pp4 

You can see the status(pending) of that withdrawal.I hope it can be finished processing before I’m be back to Shanghai. :)

How to manage your financial life

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Nowadays debts have been a major problem of people.As we are facing all markets competitively,more and more businessmen are using heavy marketing and advertising campaigns to attract consumers.Sometimes a few of consumers just buy products first with credit card,when they can’t repay the amount,they have turned it to debts.

  1. The first thing we need to do is to avoid credit,or set an expense plan to use a credit card.Maybe try to set a budget on credit card monthly and ruling of usage of credit card(e.g pay off utility bills and petrol,or only buy groceries) so that it can make balance of credit card under control and within acceptable expenses level.
  2. To set up a good habit on savings(e.g force yourself to save at least $500 or 10% of income per month in any situation and only use the funds in emergency).This will help you set down your financial base and give you a chance to manage your money in a simple beginning.
  3. If you have to buy something which is very expensive but quite essential and necessary,you should schedule your repayment before you buy it and every time you get your salary,keep that part of money and pay for the balance as soon as possible.
  4. If you have a heavy debt and you can not afford anymore,please try to contact to professional financial planner so that they can assist you to restructure you debts(e.g IVA-Individual Voluntary Arrangement,debt consolidation…) and overcome your difficulties.Their debt advice will be importance to you!

Of course,I can’t list all ways to improve your financial life.But the golden rule here is ‘before you pay out,you must make a careful consideration first’.