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30 April 2008

What's Credit Card?

Nowadays a lot of youngsters carry credit cards. I was reading this article telling us the root of creating credit card. From the article I know that the credit card was created for travelers, you know when you go travel you do not want to carry a lot of cash in hand just in case someone robs you the only thing they get is the useless card, and of course your priceless life....

Ok as you can see there are a lot of purposes too, but the main reason was for that, until today credit card is used to fund debts.... or use it to buy stuffs like car, jewelries, clothes, and technologies(especially handphones). Then at the end of the month the consumers could not pay for it as they are using their "future" income.


Great now they face bankruptcy.... They do not know how to manage the credits, therefore it is bad debts for banks. They need to learn how to manage the credits, control their spendings, but then again if they do not have the credit cards they won't be in this situation at the first place right? hehe

Banks have their own policies, for example some banks will approve 60% of the applicants and reject 40% so I heard.

What else.... The expert said that our NPL ratio in Malaysia isn't that high comparing to Korea, Taiwan, and HongKong. So the expert claims that in Malaysia our Non-Payment Loans are in control and it is manageable situation, not serious. I certainly hope so.

So my concern is credit card will soon become a type of instant ATM machine? No limits, even without parents the youngsters will still be able to have extra "cash" to spend....Of course they have to be 18 year-old.

Hey I do not have credit card but I do have debit card :P haha




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3 comments:

Johnny Ong said...

fyi, msian credit cards will not provide the 20 days free credit period if card owners don't pay on time in the previous month. will blog abt this soon

Huei said...

wahahhahhahh

u're like describing me
"but the main reason was for that, until today credit card is used to fund debts.... or use it to buy stuffs like car, jewelries, clothes, and technologies(especially handphones)."

my gadget collections..haih

sometimes banks ask for it themselves to have bad debts..because they send a pre-approved card to you..they get u to sign up for this insurance, that insurance, this benefit, that benefit..and u end up using WAYYY more than what u can afford

sigh..i must stop buying gadgets!

EliteVillain said...

@Johnny : Oh i didn't know that lolz...Thanks for the head up =)

@Huei : lolz u did that? Well you better clear up your debts before too much to handle ^^