News & Articles Basic Requirements for Owning a Credit Card
Basic Requirements for Owning a Credit Card
7 Dec 2015
In Malaysia, Bank Negara Malaysia is the body in charge of regulating personal debt through credit cards. Therefore they also have the legal authority to administer the laws surrounding the usage and application of credit cards. Credit cards cannot be given out to just anyone as you have to fulfil some basic requirements before qualifying for one.
There has been a tendency for many Malaysians, especially young people to abuse their credit cards and only make the minimum payment each month, while maxing out their credit limits. This phenomenon has driven up the level of household debt in Malaysia and therefore Bank Negara has tightened certain basic requirements to obtain credit cards since 2011.
What are the basic requirements to be the main credit card holder?
• Annual income of RM24,000 per year and above as set by Bank Negara (used to be RM18, 000 prior to 2011)
• Minimum age 21 for main card holder, and 18 years old for supplementary card holder
• Most banks have different types of credit cards and may put their minimum age and minimum annual income higher than 21 years and RM24,000 respectively
• Most banks in Malaysia set their minimum annual income at RM 36,000
• Anyone with an income of less than RM36,000 yearly is allowed to hold credit cards from no more than 2 Issuers
What are the normal credit card limits?
For those earning RM36, 000 and below, the credit limit is twice their monthly income. Meaning that if your monthly income is RM 3,000, your credit limit on each credit card in RM6000 and you cannot have more than 2 credit cards from 2 different credit card issuers.
If you earn more than RM 36, 000 per annum, you can have more than 2 credits cards from 2 different Issuers and the restriction does not apply to you. However, the credit limit remains the same on each card.
What if I earn less than RM36,000 but have more than 2 credit cards from the same bank?
There is no problem if you have more than 2 cards from the same issuer. The restriction only comes into place when you have more than 2 Issuers (for example, more than 2 banks).
However, you must keep in mind that no matter how many cards you have from the same Issuer, the total limit on all cards together is twice your monthly income.
What if I earn less than RM36,000 but one of my cards is a corporate card?
If one of your cards is a corporate card, it does not affect anything as the corporate card is charged to your company and is not to you as an individual. Therefore the restriction of not more than 2 issuers still remain as per normal.
What documents do I need to provide when applying for a credit card?
• Photocopy of IC
• Recent utility bill of the residence as stated in your IC
• Latest salary slip and last 3 months bank statement ( if employed)
• Last 6 month’s bank statement ( if self-employed)
• Photocopy of business registration form ( if you have a business)
• Latest income tax return form
There has been a tendency for many Malaysians, especially young people to abuse their credit cards and only make the minimum payment each month, while maxing out their credit limits. This phenomenon has driven up the level of household debt in Malaysia and therefore Bank Negara has tightened certain basic requirements to obtain credit cards since 2011.
What are the basic requirements to be the main credit card holder?
• Annual income of RM24,000 per year and above as set by Bank Negara (used to be RM18, 000 prior to 2011)
• Minimum age 21 for main card holder, and 18 years old for supplementary card holder
• Most banks have different types of credit cards and may put their minimum age and minimum annual income higher than 21 years and RM24,000 respectively
• Most banks in Malaysia set their minimum annual income at RM 36,000
• Anyone with an income of less than RM36,000 yearly is allowed to hold credit cards from no more than 2 Issuers
What are the normal credit card limits?
For those earning RM36, 000 and below, the credit limit is twice their monthly income. Meaning that if your monthly income is RM 3,000, your credit limit on each credit card in RM6000 and you cannot have more than 2 credit cards from 2 different credit card issuers.
If you earn more than RM 36, 000 per annum, you can have more than 2 credits cards from 2 different Issuers and the restriction does not apply to you. However, the credit limit remains the same on each card.
What if I earn less than RM36,000 but have more than 2 credit cards from the same bank?
There is no problem if you have more than 2 cards from the same issuer. The restriction only comes into place when you have more than 2 Issuers (for example, more than 2 banks).
However, you must keep in mind that no matter how many cards you have from the same Issuer, the total limit on all cards together is twice your monthly income.
What if I earn less than RM36,000 but one of my cards is a corporate card?
If one of your cards is a corporate card, it does not affect anything as the corporate card is charged to your company and is not to you as an individual. Therefore the restriction of not more than 2 issuers still remain as per normal.
What documents do I need to provide when applying for a credit card?
• Photocopy of IC
• Recent utility bill of the residence as stated in your IC
• Latest salary slip and last 3 months bank statement ( if employed)
• Last 6 month’s bank statement ( if self-employed)
• Photocopy of business registration form ( if you have a business)
• Latest income tax return form
Source: DurianProperty.com