Kamis, 28 Januari 2010
There are basically four types of cards in the market namely Credit Card, Commercial Card, Charge Card and Debit Card.
Since there are so many types of cards available, how do you know which type is better for you? I believe some of us don't even know what are the differences between these cards. Thus, here I hope to provides the differences and some benefits between these types of cards to help you find the right card.
Credit Card
Credit Card is the type of card that allows you to make purchases using the credit available which you will be billed later. This means that you can make any purchases without paying in real cash until your bill arrives. You have the options of either paying the total billed in full or any amount as long as the amount is not less than a minimum amount. The minimum amount is usually a percentage of the total balance of your card. However, since they allow you to carry a balance in your card, they charge you interest on the balance.
Commercial Card
Commercial Card is the same as credit card but is often issued for business use which includes corporate card, purchase card, business card, travel and entertainment card. Commercial card often offers business oriented rewards and is a mean of separating business expenses from personal expenses.
Charge Card
Charge Card is very similar to credit card where you can make purchases using the card which will be billed later. However, when the bill arrives, you will have to pay the total amount in full which means you are not allowed to carry a balance. This means that you will not be charged any interest since you do not carry any balance in your card. Using a charge card will help you to control on our spending.
Debit Card
Debit Card is the type of card that allows you to make a purchase by deducting the total amount of the purchase directly from your bank account. This means that you can only use this card to make a purchase if you have available balance in your bank account. No interest will be charged as you are using your own money.
Before you decide on which card to choose, bear in mind that according to the new Malaysia Budget 2010, all credit card, commercial card and charge card is eligible for the RM 50 Service Tax. However, Debit Card is not included in the list and thus by using Debit Card you do not need to pay the RM 50 Service tax.
Since there are so many types of cards available, how do you know which type is better for you? I believe some of us don't even know what are the differences between these cards. Thus, here I hope to provides the differences and some benefits between these types of cards to help you find the right card.
Credit Card
Credit Card is the type of card that allows you to make purchases using the credit available which you will be billed later. This means that you can make any purchases without paying in real cash until your bill arrives. You have the options of either paying the total billed in full or any amount as long as the amount is not less than a minimum amount. The minimum amount is usually a percentage of the total balance of your card. However, since they allow you to carry a balance in your card, they charge you interest on the balance.
Commercial Card
Commercial Card is the same as credit card but is often issued for business use which includes corporate card, purchase card, business card, travel and entertainment card. Commercial card often offers business oriented rewards and is a mean of separating business expenses from personal expenses.
Charge Card
Charge Card is very similar to credit card where you can make purchases using the card which will be billed later. However, when the bill arrives, you will have to pay the total amount in full which means you are not allowed to carry a balance. This means that you will not be charged any interest since you do not carry any balance in your card. Using a charge card will help you to control on our spending.
Debit Card
Debit Card is the type of card that allows you to make a purchase by deducting the total amount of the purchase directly from your bank account. This means that you can only use this card to make a purchase if you have available balance in your bank account. No interest will be charged as you are using your own money.
Before you decide on which card to choose, bear in mind that according to the new Malaysia Budget 2010, all credit card, commercial card and charge card is eligible for the RM 50 Service Tax. However, Debit Card is not included in the list and thus by using Debit Card you do not need to pay the RM 50 Service tax.
