Credit Card Fees You May Not Know About

Your credit card can be a valuable financial tool, but how familiar are you with its fees and charges? Start learning these credit card fees that you may not know about and how you can avoid them!

It’s no secret that a credit card is one of the most convenient financial tools anyone can have. The unassuming plastic card allows you to make speedy online and offline purchases at almost every retailer in the world (at least those that accept your credit card provider), as well as giving you an interest-free payment period for up to 20 days, depending on your credit card provider (as long as you do not have any outstanding balance from the previous month).

But of course, all these benefits come with fees and charges. Some are more well-known than the others, so here is a list of the lesser known credit card fees.

Physical Statement Fee

There is a fee every time you receive your physical (paper) statement? No kidding! But the truth is, more and more banks are encouraging their patrons to opt for paperless e-statement in an effort to protect the environment, hence the reason why banks are charging a fee for physical statements.

If you’re still receiving physical statements every month, now would be a good time for you to switch to the eco-friendlier (and cheaper) e-statement. You can contact your credit card provider’s customer service or simply login to your online banking to make the switch.

Late Payment Fee

Although late payment fee is among the better-known fees, many are unaware as to how financially damaging it is to miss or delay credit card payments. Most credit card providers charge a minimum of 1% from your outstanding amount whenever you miss your credit card payment due date, and it’s usually capped at RM100.

So, if your outstanding amount is RM3,000 and you make your credit card payment after the given due date, you’ll need to fork out an extra RM30 for the late payment fee!

Fortunately for you, certain credit cards such as Citi Simplicity+ card does not impose late payment fees at all! However, do keep in mind that any late payment will be charged interest and even recorded in your credit history - which may hurt your chance of getting credit facilities in the future.

Interest on 0% Interest Instalment plans

Easy Payment Plans (EPP) and 0% instalment plans are two of the best advantages of having a credit card. These plans allow you to convert your big purchases to an interest-free instalment plan within an agreed-upon period of time (again, as long as there’s no outstanding balance from the previous month’s statement). It’s a great perk to have for when you finally decide to purchase that brand-new laptop you’ve been eyeing for months.

But, bear in mind that if you make so much as one slip up with your instalments, you can wave goodbye to all the perks of the 0% interest instalment plan. Instead, say hello to your standard interest rate (which ranges between 15% to 18%). The outstanding amount from your instalment plan will automatically be charged a standard interest rate on your next statement, which can’t be good for your finances.

Annual Fee

With most credit cards offering waiver for the first year to new credit cardholders, not everyone would remember that their card does come with annual fees until the second year, which sparks some discontent among the new cardholders.

It stands to reason that credit cards with zero annual fees would be the better option for anyone with savings in their mind. Citi Simplicity+ card would be perfect for those who are looking for an all-around budget credit card, as it doesn’t charge annual fees at all!

Over Limit Fee

There are times when you need to incur unforeseen expenses, which normally end up in you exceeding your credit limit. Each time you max out your credit card and the outstanding amount exceeds your credit limit, you’ll be charged an over-the-limit fee. This fee will continue to charge your account until your outstanding balance is lower than your credit limit.

The simpler solution to avoid over limit fees is of course by applying for the Citi Simplicity+, which comes with zero over limit fees.

All of these fees may seem hefty to you, but with a good planning and financial management, you can enjoy the many benefits of being a credit cardholder while avoiding these fees! Also, remember to go through the fine print on your credit card agreement before signing anything. A little extra information can go a long way towards saving you from any frustrations and money issues later.

If you are budget conscious and looking for a card with low fee charged, the new Citi Simplicity+ card is recommended and best suited for you. The card keeps it simple with no annual fee, late fee and over limit fee.

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Your Top 10 Checklist To Get The Right Takaful Coverage

Malaysians are spoilt for choice when it comes to finding a takaful plan that the question now is finding the right one that suits your needs.

Signing up for a plan is the first step but before you put pen to paper, there are a few factors that would influence your coverage. Why should you pay attention to the details? Because you need your plan to be up to date.

It’s simple maths, really. Imagine if you are covered for RM500,000 today. Factor in inflation, and that may not be sufficient in 10 years’ time. Now, imagine if you were clueless about this at the date you are seeking to claim your takaful?

The good news is, to keep your plan relevant, you don’t need to do much. For starters, seek out the help of a takaful advisor. He or she could help you understand a product so that you will be shielded, especially during uncertainties.

Next, ensure you are transparent with your advisor so that you can work out a proper plan either for you or your family. The last thing you want to do is spring a surprise on your advisor, because what you don’t tell, you can’t claim.

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Financial Advice for Fresh Graduates in Malaysia

If you’re about to graduate or have recently graduated, first of all – congratulations! Learning never really stops, but with that Diploma/Degree/Masters/PhD in hand, you are now academically qualified with a certification that will help you kick-start your career – be it in a start-up, with the family business, or as part of the corporate rat race.

Before you begin living payslip to payslip, here is some financial advice for all fresh graduates and entry-level executives at their first job, in no particular order.

Build your emergency fund. In your first year of full-time employment, you may be tempted to spend all your hard-earned money, but start the habit of saving early. Pay yourself first by automatically putting aside a portion of your income towards your savings. Save enough to create a three-month financial buffer and grow that into a six-month financial buffer in your second year of employment. The emergency fund prepares you for any financial setbacks or unforeseen circumstances that may require you to spend a little more than usual – such as a dental operation or bust tyres for instance.

One of the best ways to do this is by continuing to live your student lifestyle for as long as you can. If you live at home, continue doing so to avoid having to pay for rent. Keep a lookout for cheap eats and bargains, and live within your means. Don’t get into debt. Hopefully, you will grow addicted to how quickly your emergency savings fund is growing and will continue to save money!

Did you know? When a financial setback occurs, only 18% of Malaysians have enough savings to survive three months while only 6% of Malaysians can survive six months. A setback that might cost only RM1,000 creates difficulties for 75% of Malaysians, and that’s a segment you do not want to be a part of. Start saving and be a part of the 6% that is prepared with a six-month financial buffer.

Understand the concept of lifestyle inflation and resist it. This means you don’t try to compete with your friends or keep up with the Joneses. Don’t try to live where your friends are living, or where they are flying to, or what cars they are driving, or what they are eating and where they are dining. It’s one of the surest ways to deplete your bank account and the this will not make you happy.

Buy a second-hand car. A brand-new car depreciates as soon as you drive it out of the showroom. But it is also a huge expense to take on as soon as you graduate when you could better spend or save your money in other ways. A second-hand car is a more practical choice. You will pay a lower down payment for a cheaper car, with a lower loan amount which means lower monthly repayments to your car loan.

Pay off any debt as quickly as possible. Debt is toxic as you’re just starting out in your career because any money that you intend to save, is worthless as long as you still have debts that charge a higher interest than your saving accounts. The only exception would be debt with less than1% annual interest. Although PTPTN falls within this category, we still recommend paying it off as quickly as possible. You do not want to be blacklisted or barred from leaving the country.

Furthermore, the government now offers a 10% discount for settlement of 50% of your loan and a 15% discount for full settlement of your loan.

Apply for a credit card and start building your credit score. To keep an excellent credit score, you need to ensure you pay off your credit card bill in full, every month. Do not accumulate outstanding debt so be sure to monitor and track your credit card spending and that you are able to pay it off in full. Do not use it as a financial tool to pay for items that you cannot afford to repay in full. Refer to CTOS to keep track of your credit score regularly and track improvements to your score.

Practice lifelong learning. Do you hate your job after the first two weeks? Give it time and don’t give up too quickly. Show perseverance and give it at least six months. The knowledge you will gain from your peers and mentors coupled with on-the-job experience will help you are you develop your skills throughout your career. Practice the art of active listening, because when you listen you have the opportunity to learn new things.

“Spend what is left after saving, instead of saving what is left after spending,” said Warren Buffet. While many preach about setting up a budget, and we have as well in many of our articles, we know that most times we don’t actually do it. So instead, remember that nugget of advice from Warren Buffet. Consider saving as spending money on your future self. Surely, your future self is a worthwhile cause?

Don’t forget to live a little. As a student, you will have plenty of free time but little money. When you begin working, you will have plenty of money (ideally) but very little free time, at least until retirement. Don’t forget to live a little and spend some of your money on a great adventure between the time you graduate and the time you land your first job.

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Your Guide To The Work And Holiday Visa In Australia

Malaysians love to travel abroad. According to a Visa survey, Malaysians make an average of three leisure trips overseas, higher than the global average of two.

Sure, these days, many Malaysians are adjusting their spending due to the rising cost of living and depreciating ringgit, but there are ways to work around that.

How about a work-holiday combo where not only you get to vacay but take advantage of the weak ringgit by earning some foreign currency?

Enter the Australian Work and Holiday visa (subclass 462).

What is the Australian Work and Holiday visa?

This visa is for those aged 18 to 30 who want to holiday and work in Australia for up to one year.

It allows you to:

• stay in Australia for up to 12 months
• work in Australia, generally for up to six months with each employer
• study for up to four months
• leave and re-enter Australia any number of times while the visa is valid.

There are a few types of work-holiday visa subclasses, depending on your skills and reasons for applying. So it’s best to familiarise yourself before proceeding to apply.

The Australian High Commission in Kuala Lumpur processes the visa applications for those holding Malaysian passports.

Under the programme, an annual limit of 100 visas are available each year and once all visas have been allocated, there will be no new visas granted until the following visa programme year.

Note: The programme draws a huge amount of interest and demand is typically very high. If you want in, it is recommended to prepare your visa applications early to avoid disappointment.

Who is eligible for the visa?

You may qualify for the Word and Holiday visa if you:

• are aged 18 to 30 years (inclusive) on the date you apply;
• hold a valid Malaysian passport;
• have a Malaysian Certificate of Good Conduct, which has been issued no more than 12 months ago*;
• have not previously held a Working Holiday (417) or Work and Holiday (462) visa;
• have functional English; and
• hold a degree, or have successfully completed at least two years of undergraduate university study.

*Note:  In Malaysia the letter of government support is the Malaysian Certificate of Good Conduct (CGC). You must submit the original CGC as part of your application – if you do not do so, your application will be refused.  

More information on eligibility and a document checklist, please refer to the dedicated page on the Australian High Commission Malaysia website.

What jobs can you get?

There are a variety of jobs, but the common ones are:

Type of work	Pro	Con	Ave. salary	Where to find
Hostel concierge or helper	Easy to find on a working holiday visa.	Not always the best paying or best working conditions.	Minimum wage or a free place to stay	Ask at your hostel/look on job boards.
Retail worker	Relatively easy work and easy to find in-season.	Hiring is usually seasonal and has high turnover rates.	A$14-18/hour.	Pass your resume around in-store.
Server, bartender, or barista	Better pay, interesting people.	Strange hours, unsavoury people.	A$15-18/hour plus tips (which may be split).	Pass out your resume in-person.
Fundraising	Working outside, usually relaxed work environment.	Many are scams.	Base pay of A$100-200/week plus commission.	Online job boards.
Office work	Much better pay and job security.	Very difficult to find.	A$18-25/hour.	Online applications, friend referrals, and temp agencies.
Regional work (farm work, crop-picking, etc.)	Second-year visa applicable, brotherhood-through-tribulation mentality.	Back-breaking work, sketchy at times.	Often paid by kilos of fruit harvested rather than hourly wages.	Online, hostel-posted job boards, friend referral.

One of the more popular work-holiday jobs is fruit/vegetable picking.

How much does it cost?

Visa category	Base visa application charge
Work And Holiday (subclass 462)	A$440 (RM1,506)

*For the latest charges, check the Visa Pricing Table to work out the price for your visa.

There are three payment options available: credit card, card, demand bank draft (payable to the “Australian High Commission”).

In addition to the base charge, Malaysians will need to pay a VFS Service Fee for all visa applications lodged and biometrics collected at the visa application centre.

Payment is payable by cash only and made at the application centre. For mailed in applications, payment of the service fee can be made by bank draft payable to VFS (M) Sdn Bhd.

Refer to the table below for a breakdown of the fees:

	Service fee
Primary client fee
Application lodgement and biometric collection – Primary applicant	RM127
Resident Return visa applications - no biometrics required
Secondary client fee
Application lodgement and biometric collection – Secondary applicant	RM89
Citizenship by Descent and Australian Declaratory Visa applications – no biometrics required
Additional document submission – if not accompanied by a letter from the Visa Office
Biometric collection (only) fee	RM121

Generally, you’ll be paying the primary client fee and biometric collection fee. Overall, including the base charge, the Work and Holiday visa will set you back RM1,754.

But remember, you can only apply before the deadline and before the cap of 100 visas is maxed out. If you miss the window, you’ll have to wait for next year.

Credit and debit card payment

By providing your credit card details on the application form, you agree to be charged in Australian dollars.

So, you may incur banking, currency conversion fees and you accept the risk associated with any currency fluctuations.

Also, applications with declined credit card payments will be deemed invalid. You will be notified and will be asked to lodge a new application at the visa application centre with payments made by cash or a bank draft.

How do I apply?

Before applying, it is always best to read the VFS Global website for the latest updates and requirements.

But here’s a breakdown of the application process:

Step 1

Select a visa subclass which is appropriate for the purpose of your travel to Australia and download the relevant visa application form.

Please note: You can also obtain a visa application form at the Australian visa application centre (AVAC).

Step 2

Ensure you have supporting documentation. For a list of supporting documentation required for your visa, see checklists provided under Visa Types. Gather all required supporting documentation for your application.

To avoid delays, submit all supporting documents at the time of application.

Step 3

Organise payment of visa fees either in the form of cash, credit card or bank draft from Malaysian bank in ringgit only. This is made payable to the Australian High Commission.

Step 4

Visit the visa application centre to lodge your application and submit your biometrics.

VFS Australia Visa Application Centre

Address: 19, Wisma Mca, 163, Jalan Ampang, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

Phone: +60 3-2166 6550

Some applicants who apply for a visa online (including Electronic Travel Authority) are excluded from providing biometrics. For more information visit the Biometric Data Collection page.

How long is the processing time?

After applying for your visa, you can track the status of your application. Just remember the service may only provide information on the current process of your application at the Australian visa application centre.

It cannot provide information on what is happening with the application once it reaches the Australian High Commission.

Processing time for your visas can be viewed in your relevant visa subclass information you have applied for.

With a year on your visa, you can afford a roadtrip through all eight states in Australia.

The Work-Holiday Visa Checklist

As even a well-prepared applicant can miss out on important details, use this checklist to make sure your application is complete:

Note: Do not include original documents unless stated and in general, documents not in English must be accompanied by accredited English translations.

Forms

• Applying by post or in person:
  • Form 1208 – Application for a Work and Holiday visa (205KB PDF)
  • Second Work and Holiday visa: Form 1464 – Work and Holiday visa: Employment verification (158KB PDF)
• Acceptable evidence of employment includes certified copies of:

• pay slips (work must have been undertaken after November 18, 2016 in order to be counted towards your three months’ specified subclass 462 work total)
• a written and signed piecework agreement setting out the pay rate per piece and how it is measured
• group certificates
• payment summaries
• tax return
• employer references
• a completed employment verification form
• Australian bank statement covering the period of declared specified work.
• a written and signed agreement setting out any lawful deductions in pay.

Receiving assistance

Complete these forms only if you are lodging a paper application:

• If someone gives you advice or lodges your application for you:
  • Form 956 – Advice by a migration agent/exempt person of providing immigration assistance (133KB PDF)(the agent or exempt person completes the form and you must sign it).
• If you would like someone else to receive correspondence from us on your behalf:
  • Form 956a – Appointment or withdrawal of an authorised recipient (116KB PDF) (the recipient completes the form and you must sign it).

Charges

• Pay the visa application charge.​

Your personal documents

Here is the list of supporting documents required for your application.

For first and second Work and Holiday visa applications:

• Copies of the biographical pages of your current passport or travel document (these are the pages with the holder’s photo and personal details and the issue/expiry dates).
• A copy of your birth certificate showing both parents’ names. If you do not have a birth certificate and are unable to get one, you must provide a copy of the identification pages of at least one of the following documents:
  • family book showing both parents’ names
  • identification document issued by the government
  • court-issued documents that verify your identity.
• If your name has changed, a copy of the evidence of the name change.
• Two recent passport-sized photographs (45 mm x 35 mm).
  • These photographs should be of the head and shoulders only against a plain background.
  • Print your name on the back of each photograph.
• If you have served in the armed forces of any country: copies of military service record or discharge papers.
• Evidence of sufficient funds for personal support during your stay in Australia, of approximately AUD5,000.
• Evidence that you hold an onward travel ticket out of Australia or have sufficient funds to purchase such a ticket at the conclusion of your stay. This must be in addition to your funds for personal support while in Australia.

First Work and Holiday visa applications – additional documents

• Evidence of relevant educational qualifications.
• For relevant countries, a valid letter of government support for this application. For details, see: Work and Holiday visa (subclass 462).
• Evidence that you have a level of English which is assessed as at least functional.  You must provide one of the following prescribed types of evidence:  the results of a specified English language test (IELTS, OET, PTE Academic, TOEFL, CAE) taken in the past 12 months or other eligible evidence of English skill. If you are providing the results of a Cambridge English: Advanced (CAE) test, the test must have been undertaken on or after 1 January 2015. For details, including other eligible evidence of English skill, see: Work and Holiday visa (subclass 462).

Why opt for the Work and Holiday visa

Let’s start off with the cons. First, you’ll have to work, and spending forty-odd hours a week means you can’t see the sights and enjoy your holiday to the fullest. Also, if you get jobs such as being a farm hand, you’ll be nowhere near the city or even touristy destinations.

Then, there is competition, and with only 100 visas offered each year, competition is tough. You’ll also have to ensure you apply within the deadline.

The bigger problem is that you’ll have to fork out roughly RM1,700 without the assurance that you’ll get the visa.

The pros? Well, the obvious thing is money. You needn’t cut your trip short if you can bag a money-spinning gig. As the visa lasts you a year, you can easily work for the first six months and go on vacation during the next six months.

For example, being a kitchen hand or washing cars can get you anywhere between A$15 and A$22 an hour. If you target sales job, such as door-to-door installation of free energy-saving products, you can make several times more than with an hourly paid job.

One guy managed to get up to AUS$2,500 a week just by selling things. He ended up saving up more than enough to not only tour all eight states in Australia, but also continue travelling to New Zealand with A$40,000 in his pocket. Imagine returning home with that much cash!

Sure, as these jobs are not high-paying ones, it means that you will confine your stay to most hostels and be prudent with your finances – but with the Work and Holiday visa, you get the chance to not only enjoy a vacation but also an experience.

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Here’s One Of The Quickest Ways To Clear Your Debts

Budgeting is one of the most basic and common method to help you manage your finances. It helps you keep track of where your money is coming and going, and it also gives you a map of how to spend your money as well as how much to save.

If you’ve been budgeting, you may have already tried a number of tactics to up your savings game, including the 50/30/20 budget as well as aiming for an income that covers your expenses and savings. But if none of these work for you, here’s another budgeting method that might help.

The elimination budget

The elimination budget has one rule, and one rule only: Eliminate a spending category to keep your spending amount below your income.

That’s it. While the rule is simple enough, implementing it takes some effort. Firstly, you will need to understand your budget and its various spending categories well. Then, combine that understanding with steely discipline to ensure that the spending category that you have eliminated remains… well, eliminated.

Confused? Let’s give you an example. Here’s a typical monthly budget with the following spending categories:

Category	Budget
Groceries	RM300
Restaurants	RM200
Cafes and Snacks	RM100
Petrol	RM250
Season Car Park	RM200
Life Insurance	RM300
Utilities	RM550
Entertainment	RM200
Total	RM2,000

Let’s say you’re currently earning a salary of RM2,200, this means you’re currently spending almost all of your income with only RM200 left for incidentals. Once you have identified your spending categories, the elimination budget requires you to remove one of these categories, starting with the least important one.

For example, based on this budget you can start by removing the cafes and snacks category. This means you have to stop spending on anything related to cafes and snacks, so you can save about RM100 a month.

Once you have successful eliminated this category, you should go through your budget again to identify the next category to eliminate. Give it a few months to get used to removing one category before you start on the next category.

If you decide to remove the entertainment category next, you will have to refrain from spending on movie tickets, music subscription, books and other forms of entertainment.

Keep removing categories until your spending becomes less than your income.

Who should do this?

This is best for those who are having severe cash flow problem, or those who are in debts. If you are living pay cheque to pay cheque while carrying a credit card balance, here’s how this elimination budget can help you manage your debt better.

Based on the sample budget above, if you have successfully eliminated cafes and snacks, as well as entertainment from your budget, you would have additional disposable cash of RM300, on top of the RM200 for incidentals every month. This bumps up your disposable cash every month to RM500.

If you are carrying a credit card balance of RM5,000, here’s how the extra RM300 makes a difference:

Items	Without eliminating any categories	After eliminating 2 categories
Total cash for credit  card payment	RM200 + RM50 (RM200 does not meet the first  minimum payment requirement)	RM500
Time to pay off  your credit card balance	5 years and 5 months	11 months
Total interest incurred	RM1,491	RM375

Without eliminating any spending categories, the budget does not even have enough left over to pay the minimum payment of a credit card balance of RM5,000.

With an additional RM300, you will be able to pay off your credit card debt faster and save 75% in interest!

What if I can’t eliminate anything?

Try to readjust your categories in your budget to see if there’s a section that you can possibly cut off. Not all expenditures are a necessity, so look for a category that you can possibly not spend on for at least a month to get you started. If you still can’t find any categories to eliminate, you may have to drill down further. For example, eating out category can be drilled down to work lunches and weekend meals.

Even things like season car parking can be eliminated if you find a solution like carpooling that could help you make eliminating a category easier. Whatever it is, though, the choice is up to you on what should and shouldn’t be eliminated. However, you will need to be completely – and sometimes, painfully honest with yourself when distinguishing what is a necessity and what is not.

Is it a long-term solution?

The elimination budget is a necessary evil if you are in a drastic situation that requires you to cut down a significant amount on your spending. Depriving yourself of any of your spending categories will be difficult to do in the long-term, so it’s best to do these things slowly and focus more on changing your lifestyle.

If you spend hundreds every month on happy hour drinks with colleagues and friends every Friday, it’s time to re-evaluate your lifestyle so it is not dragging down your finances.

The elimination budget does seem drastic, but if you are in need of a financial overhaul, this method is the most effective and you will likely see results much sooner.

However, there is a point where you may find yourself running out of categories to eliminate. At this juncture, relook at your budget and try to reduce the spending amount for certain categories. If you have been spending way too much on eating out, it’s time to look for ways to reduce that expense.

Whatever it is, the elimination budget works as long as you are disciplined and plan your budget wisely to know what you can and cannot take away. Give it a go during those drastic times, and you can see yourself putting away some money for savings as best as you can.

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