Credit cards

I was first introduced to the idea of credit card in early 80s when my boss Mr. Wong Sow Fee handed me the application form. I told him that my income then might not have qualified me for getting one and he replied: " No worry, it can be done!" That was how I got my first ever American Express card!

The credit card serves its purpose where one could spend future money and given a grace period to wait for your salary to be deposited in and settle the bills later. If you do not mind the exorbitant compounding interest equivalent to 18% per annum, you could also opt to pay by instalments. What a useful and convenient plastic card for young engineer like me who needed this badly to smoothen up my cash flow then!

One day I was settling the bill late and the payment was sent by check via post but yet to be received by the card center. I was planning on my way to the East Coast for a "Cuti Cuti Malaysia" holiday trip with my wife and that coincided with the date the Amex card was due for renewal. I went to the card center to appeal and a young lady talked to me and she left me sitting and stranded on a cold chair, and that was the kind of arrogance you could expect from this particular card center! From that incident, I took my latest pay check for the month and settled all outstanding amount and kissed goodbye to American Express!

During my working career with HP and each section head was entitled a company American Express card but I declined to own one. Since the last decade or so,  the credit cards war amongst the banks is in full swing and everywhere you go people is begging you to take on their credit cards. American Express re-appeared and entered the Malaysian market more aggressively through some banks at that warring period and as expected one of the sales persons approached me! I briefly related her the old story and just so sorry that there will be no more American Express card for me !

It is important lesson to learn how arrogance had left a tainted impression on a brand name to the consumers and how certain organizations employed "short-sighted" employees to handle customers in such unprofessional manner that eventually lost the customer forever!

Before long after giving up my Amex, Visa and Master cards came and they swept the entire market in Malaysia and Amex was a name long forgotton by many. I am now the proud owner of both Visa and Master cards from Citibank and Maybank. Credit cards are useful especially during time of emergency like hospitalization where the medical treatment bill is very expensive and sometimes one needs to swipe a few cards to its limit in order to cover the expenses. I was financially in dire strait during the time my mom and father-in-law both were critically ill and needed medical attention at the same period simultaneously. The credit limits of my credit cards were almost full every month and life was indeed an agony!

As my earning income gathered strength at later stage especially when I was posted overseas, my credit cards are hardly used and we pay cash most of the time for almost all our spending. The credit feature of credit card to me though is convenient but on the other hand is also a trap for undisciplined young people. It will nurture them to an undesirable spending habit while they still do not have the capability to earn enough for that kind of life-style. My principle of using credit card now is, if possible limit credit card to emergency usage only or those payments that could earn you points or discounts. And also have your credit limit set as low as practically possible so that you will be reminded when to cut-down your spending once the limit is reached and the alarm is thus raised to your attention.

When Aeon credit card was first promoted by Jusco, a favorite shopping place for my wife where double points are to be rewarded to cardholders. I thought it was not a bad idea to own one of their card for my wife. I presented my overseas earning credential and surprisingly the credit evaluator disqualified me! Did not know on what ground they rejected the application but I was thinking and laughing to myself, if I am not qualified, perhaps at least 50% of Malaysians will not be entitled! Again they approached me a few months later, and I told them : "Good luck, Aeon card!"