Credit card is becoming the most used financial tool for everyday purchases in the nation. Most of the people are turning to their cards instead of using hard cash for retail transactions as well as daily fuel requirements. Most of the Malaysians are relying on their best credit cards that is becoming the root cause of their enormous debt problems.

A recent survey has also found that the amount of people owning a credit card has also gotten higher in recent years. Not only the number of people holding a credit card has increased, but there has also been a significant rise in the balance on a credit card. The number of cards owned by an individual has also been rising recently.

Where do Malaysians use their credit card?

  • Retail purchases: Malaysians use the biggest portion of their credit on retail purchases. From everyday retail shopping to shopping on an impulse, a credit card is Malaysians’ first payment option.
  • Fuel purchases: Another major element that Malaysians use their credit card for is the everyday fuel requirements. With petrol cards that come with rebates on fuel purchases, the usage of credit card on fuel stations has seen a rise lately.
  • Bill payments: Most of the people also prefer to pay their electricity and utility bills using their credit card.
  • Travel: From flight bookings to hotel room bookings, a majority of Malaysians prefer to use their cards. It is also seen that for purchases made overseas during their travel, people tend to use their cards instead of carrying money in the form of cash.
  • Entertainment: Another major element that constitutes to the credit card usage is entertainment. People often use their cards for movie ticket bookings and other entertainment instead of cash.

But there’s a bright side

Despite using their cards so frequently, Malaysians are also seen to maintain a good behaviour when it comes to making timely payments on their cards. The percentage of defaulters have dropped in recent years.

How to keep a check on credit card spending

In order to minimise debt and maximise savings, these steps can prove beneficial:

  • Make a budget and plan accordingly: In order to save yourself from high credit card debt, you need to make a financial plan and follow it efficiently.
  • Don’t use your card unnecessarily: Use your card wherever necessary. If you use your card anywhere and everywhere, it can get hard to manage and track the expenses.
  • Use the full potential of your card: In order to avoid charging your card too much, you need to explore the full potential of your card. You should use your cashback card for your everyday retail shopping and a card that gives you rebates or offers on petrol should be used for fuel purchases.
  • Carry some cash with you: Don’t rely completely on your credit card and carry some cash with you for smaller purchases in order to avoid using your card every time.
  • Make timely payments and don’t go beyond the dedicated credit limit: Always try to minimise the interest you pay for your credit card spending by making monthly payments before the due date. Also, don’t max out your credit card and spend your card within the dedicated limit in order to avoid penalties.
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