Prepaid Credit Cards Malaysia
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Malaysia is largely a cashless economy. People who do not own a credit card have to face problems during hotel reservations, travel bookings and car rentals. A credit card is also irreplaceable while making purchases online or over the phone. The concept of a prepaid credit card in Malaysia is to provide rolling credit facilities to individuals who do not qualify for standard credit instruments.
Malaysia is largely a cashless economy. People who do not own a credit card have to face problems during hotel reservations, travel bookings and car rentals. A credit card is also irreplaceable while making purchases online or over the phone. The concept of a prepaid credit card in Malaysia is to provide rolling credit facilities to individuals who do not qualify for standard credit instruments.
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Understanding Prepaid Credit Cards in Malaysia
To purchase a prepaid credit card in Malaysia, one has to open a checking or savings account with the concerned banking institution. This account is similar to a normal savings or checking account. Individuals also receive interest on the money deposited in this account. The only difference is that one cannot withdraw the money from this account. A fixed amount of money is always maintained in the account, which determines the credit limit of the prepaid card.
Simply put, a prepaid card is issued against the money reserved in a savings or checking account. Any violation to the terms and conditions can lead to seizure of the card. This affects the credit rating adversely.
Who Needs a Prepaid Credit Card Malaysia?
Prepaid credit cards in Malaysia are ideal for the following set of customers:
- Students
- Individual with no fixed source of income
- Individuals with poor credit ratings
- Those who cannot provide income proof, address proof or other standard requirements
- Non-residents
Prepaid Credit Card Malaysia Issuers
Major financial institutions that issue prepaid credit cards in Malaysia are:
- American Express
- Citibank
- Deutsche Bank
- EON Bank
- HSBC
- Standard Chartered
- Southern Bank
- Tune Money
Prepaid Credit Card Malaysia Advantages
While a prepaid credit card Malaysia can be used just like any other standard card, it also offers several advantages. A prepaid card is the route to good credit ratings. Individuals with poor credit ratings can own a prepaid card, pay bills on time and stay within their spending limits. Practicing this for a year will make them eligible for a standard credit card.
A prepaid card puts a cap on expenses. With a prepaid card, one cannot purchase beyond the fixed amount. Thus, any spendthrift shopping behavior can be checked. The only disadvantage is that prepaid cards are not accepted for online transactions by some ecommerce websites.
Get more top Malaysia Credit Card Information on EconomyWatch below.
And check out the Top 10 Malaysia Credit Cards according to EconomyWatch readers.
