Now what am I going to do with so much credit?! Wondering what I'm talking about?
With people cancelling excess credit cards ahead of the government tax taking effect next year, credit card issuers (banks in particular) have been increasing credit limit of cardholders probably in a bid to retain clents. I got a HUGE increase on my card. Crazy, I say! But oh well, it could come in useful someday....I think..
Debit cards and petrol cards are not affected by the tax (of RM50). Other cards not affected include closed community charge cards used at workplaces, schools and clubs, as well as loyalty and e-money cards like Touch ’n Go, according to the Association of Banks in Malaysia.
The tax (RM50) is only chargeable when the credit or charge card is issued, on the anniversary date or upon renewal. Which means, it is still not too late to have your card(s) cancelled, if you wish.
“Banks and other card issuers are allowed to enter into arrangements where cardholders may apply for redemption or reward points or rebates they earn through using their cards for the payment of the service tax,” the Associate of Banks said.
And added, "Member banks and other card issuers will be contacting their cardholders in respect of the imposition."
Source: The Star
But credit card is affected...sigh...thinking of cancel some of the cards when it expired. Think the government also think the bank is making too much money from us and want to trim the banks' profit. :PReplyDelete
Either because the banks rake in too much profit or Government also want a piece of the pie.ReplyDelete
I admit I have more than two and will be cancelling most of them. Why so many cards? I don't have any outstanding balance but having separate cards for separate expenses helps me monitor my spending.
If debit cards not affected, why can't charge cards be exempted too, I wonder?
Glad to be here.
Hope to see you on my blog?
HAVE YOU A GREAT YEAR!
This is good news for those who use debit cards a lot. :DReplyDelete
until the banks have clearer communications about this RM50, i would rather quickly cancel extra ones before 2010.. now left 2 with me only..ReplyDelete
No issue with this as I have only one credit card. Just realised that I can get 50% off ticket prices at GSC Signature with EON-GSC card! I would have sign up for that card if not for this tax thing! Damn!ReplyDelete
Maybe I don't mind paying for it cos if I go watch just one movie at GSC Signature every month, I would have save up to RM120 a year. More than enough to pay for the RM50 tax!
Superman, I believe if the cards serve the purpose, that tax is a small price to pay, lor.ReplyDelete
About trimming the banks' profits, the joke is on us, the consumers. In the end, we are the ones paying the tax.
Lina, ultimately, the consumers are paying the price - another form of taxation on the rakyat!
Charge cards, unfortunately, are also credit cards in a way - short-term loans, mah.
Hey, Shakira, happy to have you here. Will visit your blog with pleasure.ReplyDelete
You, have a great year too!
Tekkaus, in a way.
SK, wise move as evidenced by your angpow from the redemption. Quick thinking on your part. Kudos!ReplyDelete
Foong, that's a great trade-off. Go apply, quick, if you're a movies person.
Hi, Just be careful you watch your limits.ReplyDelete
These cards can be useful same time encourages us to spend.
Wishing you the best of Seasons greetings, keep a song in your heart, have a happy new year, Lee.
The authorities should not charge RM50 on those who own only 1 credit card. I can the relevance for those who own a host of cards and racking up the credit card bills.ReplyDelete
Hello Uncle Lee, that certainly is very sound advice, that is why some people are not too keen on having credit cards preferring cash or debit cards.ReplyDelete
Best wishes to you too for a happy new year! And thank you for stopping by.
Mei Teng, I so agree with you on waivering the tax on the first card. However, I suppose everything has a price. In this case, it's the credit facility that a credit card offers. Unless of course we use our own money as in a debit card. Ever thought about switching to a debit card? Hey, these days, some bank cards are doubling as retail cards and that's a great feature. Is your bank doing it yet?
Doubtful about the gomen's decision?? After all the huha huha things might changed again. I am a strong supporter of plastic and would welcome no levy of course. Keeping fingers & toes crossed as the energy of 12 million people could POTONG their decision. May the force be with the cards..ReplyDelete
Hi Bananaz. I don't think the govt will budge. In fact, I was hoping the banks would waive it for the cardholders, meaning they will absorb the tax. Let's continue to keep our fingers (and others) crossed. hehe..ReplyDelete
Yeah, plastic is convenient and a lot safer than lugging all that cash around though some of us would enjoy more spending other people's money (read 'credit card') first. LOL!
Rocket credit solutions site will provide you with different ways of how to increase your credit scores. Fixing your credit should not be hard and we help you make things easy. The Velocity Program they offer is easy to understand and has many FREE tips on credit repair.ReplyDelete
URL : http://rocketcreditsolutions.com