Maximum 2 Credit Cards | Ramblings of an e-trader

Thursday, 24 November 2011

Maximum 2 Credit Cards

Bank Negara Malaysia has announced that Malaysians who earn less than RM36,000 per annum (that's RM3K per month), can only hold two credit cards, with the credit limit per card capped at twice their income. According to Bank Negara, they are targetting the lower income group of people because they are most vulnerable to overspending.

I think that for rational spending, even holding one card is sufficient. Always do remember that we do need to settle our credit card every month, so as not to allow interest to accumulate.

However, I think that young executives are the most susceptible when it comes to spending past their income, as they come out to work, being influenced by friends and colleagues, and especially when they received their first credit card.


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