InVinoVeritas

I was told by HSBC that I would need to have Malaysian income to get a credit card.

simon2017

[QUOTE=Macsta;12381664]Hi Simon, not to hijack macmagrduer topic but regarding a credit card, when you applied was it straightforward? The reason I ask is I am sure I read it is different in MY if you are retired and you have to lodge money (as a guarantee I expect). I'm not yet retired so when I asked HSBC MY they just gave me an application to complete which I didn't as not being based in MY it seemed superfluous to needs. Does anyone have experience of a retired credit card application?

Hi Macsta,
I applied for my credit card at the same time as I deposited my MM2H FD with HSBC. The income requirements from memory were MR30k pa which is less than the income requirements for MM2H. I just used some of the income statements that I gave for my MM2H and there were no problems. My application went to, and was approved by their credit card department so this wasn't done at the discretion of the relationship manager. No income was from Malaysia. I've seen a number of posts where people have had various issues with HSBC, none of which I had which is why I suggested in an earlier post going through a Premier relationship manager.

NeonHippy

I'm retired and have a HSBC Malaysian credit card. I was told that my foreign pension does not qualify as income but I could have a credit card by placing some money in a fixed deposit account. The credit facility is then fixed at (if I recall) 80% of the FD.

HSBC seem really keen to promote the use of credit cards and are constantly coming up with schemes to get me to use the card. I get nearly as much in cash back as the interest on my FD.

Macsta

This is what I was informed at the time I opened my FD but never proceeded so actually its not a credit card at all in these circumstances it's seems almost a prepaid debit card.

Does the FD bear interest? If not you would have to "work the card" for all the benefits available and balance that they are at least equal to the interest your cash would receive in a paying FD to make it worthwhile.

SushiFan

I am on an MM2H visa in Penang and CIMB was happy to give me (and my wife) a credit card. No requirement on monthly income, the MM2H approval letter does the trick. We had to put a certain amount in a FD and this amount becomes your upper spending limit (it works as a guarantee in case of non-payment). The amount can be between RM 2k and 10k. This FD is a 12 month fixed FD, automatically renewed and pays interest. The interest rate is the same as for any other 12 month FD at CIMB.
This is not a debit card but a credit card because the actual payment is deferred. How much deferred depends on the moment that an expenditure is booked, so in some cases it gets deferred one extra month.

InVinoVeritas

I think what you are referring to is a charge card. The difference is that with a credit card you are not obliged to pay off the balance at the end of the month whereas with a charge card it is fully paid off each month.

RedApe

Charge Card AKA A Debit Card. Debit cards automatically deduct the sum from one's account. There may be a small service fee, but no accruing interest, or the opportunity to pay a minimum amount and roll over the accruing payment to the next month. A Credit card is, essentially, a loan (hence different cards may have different levels you are eligible for)...but unless you pay them off entirely at the end of the month you'll actually pay more for the product than if you used a debit card. Banks love credit cards as they have a good chance of making a good deal of money, debit cards are not promoted nearly as much.

NeonHippy

No what I have is very much a credit card. But who would be foolish enough to place a large sum of money on deposit earning 3 percent per annum just so they could run up a credit card and pay nearly 3 percent per month.

SushiFan

No, it is not a charge card. It is a credit card. I can elect to defer payment, but the interest rate is high.

InVinoVeritas

I see that but they are not really giving you credit if you have an FD to back any outstanding amount. What advantage is there over a debit card?

stepen

Earn miles, cashback

Also, some hotels in places like Hong Kong only accepts credit card for security deposit,they don't accept debit cards.

Gunnar45

Car rental is another one where a credit card is required.

columbine

For me Credit cards are more useful than Debit cards. Pay almost every thing with Credit cards then clear off when statements come, save me going to get cash at the banks and getting interest free deals to purchase certain big items at big stores which saves loads and at the same time the same amount can remain in acc for interest earned. Those linked with travel points/miles and access to airport lounges are just great eg I get a choice of 3 lounges in HK Chek Lap Kok and the food is way nicer than the one in Pg lounge.
After all most of us are retirees, any money saved is a bonus!

SushiFan

Get some cashback on grocery shopping (and other shopping). Get to use certain airport lounges a few times per year. Sometimes shops have a promotion where you get additional discount if you pay with credit card. Don't have to use as much cash, and need to visit an ATM less often.

RedApe

I've never had any issue with using a debit card to rent vehicles (the same insurance coverage applies), buy on line, or use in restaurants and stores. Almost all Debit Cards nowadays are also MC or VISA backed and all you do is hit a "debit" button on the scanner. As well, you can simply type in more money above the amount to be paid at most retailers and they will give you cash back.

Now in some cases there are promotional items offered with particular bank Credit Cards but I wonder if the Debit Card from that bank would also receive the promo. Air Asia sometimes will reject cards or charge more from other than their affiliated bank (or Malaysian-based banks) but when I looked they treat the CC and the Debit card from those banks the same.

Oh and there are no annual fees or increases in the "introductory" interest rates with a debit card. How many times have I been offered some great deal for signing up with a credit card and then discovered that those wonderful benefits soon evaporated.

Then again I have a terrible credit rating despite having a six figure bank account and another six figure 401K. I have no outstanding loans, mortgages, debts ergo I'm a bad credit risk ;-)