Spending money on credit card nowadays become a burden to most people. To those who do not know how to budget well, this card can be a devastating weapon which can cause mass destruction to ones life. On how to use your card correctly, please proceed to this post which I've explain before this but in new post, I will try to explain more on the service tax which was recently introduce by the government on the pre tax of reducing people's mishandling of their cards.
RM50 is the price of this service tax and reason of this introduction is to curb people from over spending their means and therefore, reducing the card on hand would definitely reduce the risk of overspending.........according to government that is. For me, that is full of crap.......if this guy wan to overspend his card, he can do it anytime and is still consider overspend. Example: His credit card limit is RM10,000 and his salary is RM4,000, he spend on average RM5,000 every month on something he likes which means he would be in deficit every month from there onwards. Does that means he is overspend with one card?.....Absolutely yes!!!!! So, what is the point of having this service tax then?
For a person like me who has 18 credit cards on hand, this service tax become a problem. Who in the world would need to pay RM900 for something we use to save money? Before you start to cut all your cards just for the sake of avoiding this service tax, do some research. First few months after this service tax has been introduced, many people start to cancel their cards and a lot of banks start to feel the heat from the reduction of their card users. With many geniuses people working in the bank, it would not be long before one ingenious plan has been brought forward. Government actually states that service tax is to be PAID by card user and banks cannot pay this amount on the card users behalf and with this statement, banks come out with a new brilliant plan. Why not give the user points to off set this amount instead like how they use to give to card user through point redemption and all. The bank is not giving out money right but then, rules never state that bank should not give out points as well.
So, from there onwards, now banks actually offering new card user as well as existing points which is enough to redeem the RM50 they needed to pay the service tax. A couple of examples here where EON bank actually give out 10,000 points to new card users upon card approval and with this amount of points. Standard Chartered bank offers existing card holder 11,000 points if you are able to swipe 3 times in a month, so on and so forth. This by all means, another attractive way to pull back all the old customers that have left them earlier.
Bottom line is, before you start to cancel out the existing card in your hand, or stop yourself from applying new one, do some research first. Bear in mind, bank is not stupid in stopping to get your money........
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