Although credit cards get a lot of negative attention in regard to personal finances, they offer a number of benefits that make them an excellent financial tool for the right people. This assumption, of course, has to do with the whether or not you pay off your credit card balance every month. If you fail to pay off your credit card balance each month, the amount paid in interest will quickly negate many of the associated benefits of owning the credit card. For this reason, you need to thoroughly understand why you should consider one.

Credit Card


Many people choose the Plaza Premium Lounge klia credit card for utmost experience and they enjoy one of the best benefits of credit cards: rebates. With the right card, you earn up to a 1.2% rebate on all retail purchases once you pass a certain monthly spending minimum. For those with RM100,000 in gross earnings each year, such a monthly spending limit can easily be met. However, not all rebates were created equal and you need to pay attention to the fine print. To get the most out of your spending, look for cards offering unlimited rebates, allowing you to earn more and more money back for your purchases with no cap to that amount. This way, you receive a fair and substantial amount back for using the card properly.

Improved Credit Score

Getting a credit card will help establish and improve your credit history as well as increase your credit score. Your credit score can affect a wide range of payments, and the better your score, the less you will have to pay. A high credit score may mean that you pay an interest rate several points lower on a mortgage loan than the rate someone with a poor credit history would pay. This can mean thousands in savings over the life of the loan.

Auto loans also fall under this category, and a good credit score can mean paying less on many insurance products such as homeowner’s insurance and auto insurance. It can even be the difference between getting a job or not since many employers now pull potential employees’ credit scores and eliminate those with poor credit histories. Establishing a good credit rating by showing responsible use of a credit card will mean significant savings during your lifetime compared with those with a poor credit history or none at all.

Online Purchases

Having a credit card can save you money on the items you purchase. Some of the best deals available are now found on the Internet. In many instances, the only way to pay for these Internet purchases is with a credit card. If you do not have a credit card, you may have to pay more for the exact same thing that you could have purchased online, not to mention the additional cost of driving to get the item. At the end of the day, you have more important responsibilities to worry about and a credit card should allow you to enjoy more of life while giving you back some of what you pay through rebates.