A credit card can really save you at times of financial crisis. It is a kind of payment card offering credits which you can utilize to pay for various services and products. Credits cards are offered by banks and credit card companies based on a mutual agreement between you and them. You need return the amount received as credit every month on scheduled dates specified by your credit card provider.
Given that life is full of uncertainties, we cannot rule out the possibilities of financial emergencies in life. There may be moments in life when you might need instant cash to meet your personal obligations. In such situations, a credit card can be your ultimate saviour.
Now, how do you pick up an emergency credit card to meet your urgent financial requirements?
Things to consider while picking up an emergency credit card in Malaysia:
- Opt of a zero annual fees card:
- Take a Low interest bearing credit card:
- Apply for higher credit limit:
- Consider the grace period:
- Does your card provide insurance and other protection features?
- Get a Low ATM withdrawal fees card:
When you need an emergency credit card, it’s advisable you opt for an annual fees free credit card because paying annual fees may become an extra burden for you in such situations. So, before you apply for an emergency credit, make sure it is free from annual fees. There are many banks in Malaysia that provide credit cards with zero annual fees.
Try to find a credit card that charges lower rates of interest. The interest rate of your credit card straightaway affects your monthly finance charges. So, when you take a low interest credit card, you will get the benefit of lower monthly finance charges. Although, a low interest credit card may tempt you spend more, you may save a lot on your outstanding amount when used wisely. Your bill will be saved from accumulating heavy interest rates.
If you need a credit card to meet your emergency needs, then go for a higher credit limit. A good credit rating will help you get higher credits in your credit card. Bank and other financial organizations in Malaysia check your credit record on CCRIS before granting you credit. If you have a good credit rating, you are likely to receive higher credit limits compared to someone who has lower credit rating.
A credit card with higher credit limit can really protect you during times of financial urgency. Apart from your credit rating, your salary is also a decisive factor when it comes to offer you credits by banks. Different banks may offer different credit limits for the same salary amount. So, if you are not satisfied with the amount offered by a particular bank, you may cancel your card and opt for a different one.
Usually credit cards offer an interest-free period of 15 - 20 days within which you need to pay off your outstanding amount. A credit card with a longer grace period can help you get more time to pay off your outstanding amount and enjoy interest free credit. Therefore, check the grace period when you apply for an emergency credit card.
Another important thing to consider while opting for an emergency credit card is to check whether your credit card offers insurance coverage, purchase protection and credit shield protection or not. Many emergency credit cards provide protection against personal accident and loss caused to your purchases done by using your credit card. The credit shield feature provides protection against unforeseen circumstances. If you fail to pay off your credit card bills on time because of some unexpected circumstances, the credit shield option will take care of your outstanding balance. The emergency credit cards also offer travel medical insurance and provide protection against lost baggage while traveling. So, check whether the card you have chosen offers all these perks or not.
You can opt for a credit card that would charge low ATM withdrawal fees. Usually, credit card cash withdrawals are followed by heavy interest charges. Since you are picking up an emergency credit card to meet your financial emergencies, you might need to withdraw cash. So, it would be wise to choose a credit card that comes with low cash withdrawal fees.
So, consider the above-discussed points before you pick up an emergency credit card. This will help you choose the best card suitable for your financial emergency. Maybankard 2 Gold Cards, Affinbank Visa Gold, Citibank Choice Visa and BSN Platinum MasterCard to name a few are some of the most preferred emergency credit cards available in Malaysia.