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.