Limit on Credit Cards

In line with BNM's objective to control spending and also to reduce the number of bankruptcy resulting from credit card usage, it will be unveiled in the forthcoming Budget on restricting the number of credit cards issued to individuals. At the same time, the qualifying income will be raised from the existing RM18000.00 per annum to RM24000.00 per annum. It is also learnt that an individual can only own credit cards from two banks of their choice. It is open to debate as to whether there are restrictions on the numbers of credit cards issued to an individual. Is the bank allowed to issue 2 cards to an individual, a Visa and Mastercard? How does owing credit cards from two banks of their choice helps to reduce the number of bankruptcy and control spending?

The move will prevent individuals from holding a string of credit cards. Unlike the yesteryears when a string of credit cards speaks for itself in terms of the financial standing of an individual. However in current situation, holding a string of credit cards means the individual is in heavy debt.

It is increasingly easy for a fresh graduate and the newly employed to own credit cards. However, this group of people does not control their spending resulting in failure to settle credit card debts.

Basically at the end of the day, it all depends on how an individual manages the finances. Do not live beyond your means.

Something for sharing.