Saturday, February 3, 2007

Are Credit Cards a Necessity?

Are credit cards a necessity? Perhaps some ten years ago, the answer to this question may be a "No", but these days, not having a credit card could be a handicap. Would anyone think of carrying tens of thousands of dollars in cash around town shopping? Here in Malaysia personal cheques are normally not accepted for walk-in shopping. Generally, shopkeepers do not accept them. They would prefer a credit card instead. No wonder sometimes they are called 'plastic money'.

It is wise to learn about credit cards to tap their full potential as different cards do have different functions. For example, if one already has a few credit cards and would like to consolidate the balances to better manage the accounts, a 0% balance transfer credit card would be suitable. Having different cards for different purposes could be an ideal way to manage spending. The card used for shopping would be well to be charged to a 0% on all purchases or one where credit card loyalty points can be collected. Before you go out to sign up for a card, why not compare credit cards available to make a well-informed choice.


  1. Credit cards have been a necessity to me for more than twenty years!!!

  2. I'm surprised stores in Malaysia don't accept personal checks. What's up with that, especially since it's a lot easier to steal and use a credit card than checks?

    Then again, Japan has never used personal checks, so most people don't even know what they are.

  3. LB, yeah, credit cards are amazing, arent they? We simply can't do without them. In fact, some things can't be done without a credit card. Could this item be the next best thing after sliced bread?

    MM, I guess there must be a high incidence of bounced cheques over here that shop-owners are wary of them. However, personal cheques are accepted at stores that sell big items (non-department stores) or render installation jobs such as furnishing or home renovations and such. Department stores strictly do not accept personal cheques. They go for cash or credit or debit cards.