Wednesday, February 10, 2010

Cancelling Credit Cards

As we all know, government will soon going to implement the service tax on credit cards. Initially, I was not into favor of this move, as if we were not burdened enough with the other new taxes being imposed on us. However, when I read the fine prints of the fyler being handed out by my credit cards company, I started to understand why it is a very good thing to do.

The RM50 service tax is actually being imposed on each credit card that we owned. Meaning let say for example, sometimes we have 2 or 3 types of credit card from the same bank, we will be tax RM150 in total by the anniversary day of the cards. This also shall include virtual cards, and the cards we received but never activates.

Initially I was panic because I owned 3 active cards, 1 virtual card and 2 cards that were never activated, including a platinum card given by CIMB about 2 weeks ago. Fuh, that would amount to RM300 tax. What a waste. Thankfully, CIMB bank has taken the initiative to call me to ask whether I wanted to activate the platinum card or not (which I don't wish to), and I took the chances to cancel a Mastercard that I've never used, and a virtual card that they de-activate themselves but still running because I had a positive balance.

I'm keeping their Visa card which I seldom use but for emergency cases, and one Petronas credit card from other bank that I normally use for my petrol and bigger retail purchases. For smaller purchases, I normally use my debit card. I still have an IKEA credit card which I never activate. I was informed by the bank that it will expire by itself after 6 months, but now I'm a bit worried because I remember receiving their zero balance bank statement after a year of receiving the card. Hmm. I wish I can remember where did I keep it.

Anyway, I advise you that it's better to take the trouble to cancel your card now especially if you don't use it. It's money worth saving.


Coffee Girl said...

Sigh. sayang kan? no such thing as Free For Life anymore.

lvynana said...

I ada 1 jak kad..cukup la tu..

Sumuk said...

coffee girl: yea.. gone are the days.. but i'm sure credit card companies will do whatever they can to attract customer back..

lvynana : i never bring cash more than RM100 with me as a safety measure, i prefer to use debit card. but debit card transaction approval can take longer time, and lots of problem with it actually, so in those case I will use my second card. but i encounter few incidents where both card was not accepted. imagine my embarassment, esp when the there's a long queue behind me. that's when i took out my emergency card as a final resort. luckily it doesnt happen all the time.

alantanblog said...

By taking the Platinum credit card with the increase credit limit MAY not be the Best choice in the case of credit fraud. Your liability is equal to your new credit limit.

Read more detail discussion at my blog

fonsusz said...

sik habis susahkan org...dah lah increase limit without consent. nowdays cuma makei debit card for online, petrol and groceries kecil2an.

Sumuk said...

alan tan : in my opinion, it's not about good or bad to take platinum card, and not about fraud. it's whether have a good control over yourself. it's up to individual and their characteristic. anyway, i never wanted an upgrade with any of my card, including the credit limit cos i don't really need them.

fonsusz: my debit card stupidly sik dapat pakei online, that's the bad thing about Maybankcard. ko makei bank apa kah?

fonsusz said...

aku makei public bank visa electron-card colour kuning(sik perlu ada saving account).

Sumuk said...

oo.. u mean u just perlu top-up every month la? actually that is better. ngenang gajiku terus masuk maybank, that's y i just choose to use maybank. but that's a good consideration for me

fonsusz said...

any amount no limit...anytime can top-up(bank in makei deposit machine-choose byr card credit), walaa...senang bah control spending.

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