How Many Credit Cards Do You Have?

There is a news item saying that the Malaysian government is going to impose a limit of owning not more than two credit cards per person. I think one is not enough, two is just nice and more than two is asking for trouble. Here are my views for just keeping two credit cards:


• One Visa and one MasterCard: It is wise to have a Visa card and a MasterCard. When one of the cards is declined you still can use the other one to avoid an embarrassing situation. By the way, I hold only two credit cards.

• Avoid the temptation of overspending and getting into debt: With too many cards you think you have the spending power. You may go on a spending spree and buy things you want but not what you need. The end result is that you are in debt.

• Simplify your life with just two cards: You can have two different cards from the same financial institution and get just one monthly statement to cover transactions for both cards and settle payment by just issuing one check. In this way, you manage and control your expenses easily

• RM50 service tax per card per year: In Malaysia, you have to pay RM50 service tax per credit card per year. When you hold 10 cards you will need to pay RM500/= per year just to keep the cards.

• Pay the minimum amount for each card: The bank will be very happy when you only pay the minimum amount every month. It is because they charge 1.5 % interest per month or 18% per year for the outstanding amount. Don’t take the easy way out by paying the minimum amount and allow the debt to snowball. Very soon the outstanding sum will be beyond your control and bankruptcy is the ultimate outcome

• Free for life: Shop around and look for credit cards without the annual fee. The features for all credit cards are the same but you save on annual fee. You still can collect points for the amount your charge to your cards and use the accumulated points to offset the RM50 service tax

• Two cards for budgeting and controlling expenses: Use one of the cards for fixed and recurring expenses such as utility bills, telephone bills and insurance premiums. Use the other card for discretionary expenses such as grocery shopping. In this way, you are able to monitor your expenditures.


The most important thing is to avoid credit card debt. Pay promptly and fully every month and everything will be fine.

Are you keeping more than two credit cards? Why?