Thanks to the blossoming financial sector, getting a credit card in Cambodia has become easier than ever before. Banks and microfinance institutions are opening their doors to the largely untapped financial market in the Kingdom, and driving up their customer benefits. With such a diverse range of options when it comes to cards, people are starting to abandon cash and find alternative payment methods. Not yet part of the cashless culture? Let us give you a definitive introduction, and provide a guide to obtaining your first credit card.
What is a credit card?
Issued by financial institutions, a credit card is a cashless payment method. As opposed to a debit card, a credit card allows you to temporarily borrow money from the bank, so that you can shop anytime, regardless of whether you’ve hit pay day. It can also be used to withdraw cash. For a period of 20-35 days, you can repay the bank without having to pay any interest or fee, or you can simply choose to repay using a minimal payment method – paying a small percentage of your total credit card statement monthly. The latter method, of course, comes with interest. It’s entirely up to you to choose how to repay based on your finances and spending habits.
What are the benefits of owning a credit card?
Credit cards allow you to make large purchases and pay back later in full. Suppose you are in a tricky situation where you need money to make a purchase urgently – a credit card can provide the help you need. As mentioned above, banks allow you to repay your bill interest-free for a specific period of time, also known as a grace period. As such, you can manage your monthly bills accordingly without having to spread out what money you have. A credit card can contribute to a wise budgeting plan with the help of monthly credit card statements.
Since you don’t have to carry cash around with you, credit cards allow a secure and convenient way to pay. Plus banks often provide various deals for credit cards issued at their establishments. Choose right and you can nab yourself some great discounts and exclusive packages from the bank’s merchant partners. Some banks even grant access to VIP privileges.
Perhaps most importantly, credit cards are accepted worldwide. Whether you are on a business trip to Seoul or a holiday in Bali, your card is universal. Credit cards allow you to spend without having to convert to local currencies, perfect for traveling. Whether booking a hotel room or shopping aboard, credit cards make paying simpler.
Should You Get a Secured or an Unsecured Credit Card?
When choosing your credit card, you should take into consideration which type of credit card is suitable for you. There are two types to consider: the secured credit card and the unsecured credit card. They both have their own advantages, so it is up to you to decide which one you prefer.
A secured credit card requires a fixed deposit as collateral for the card. Your credit limit will be determined by this amount. You will also be given savings interest, as you normally would when you deposit in a fixed deposit bank account.
In contrast, unsecured credit cards do not require cardholders to deposit collateral. However, the bank will need to review your monthly income and credit score to determine whether to issue the credit card, as well as setting the credit card limit. Since there is no collateral deposit in this type of credit card, you will not receive interest of any sort from the bank. But this could be a great option for those unable to pay a deposit.
Where can you get a credit card in Cambodia?
There are a huge number of banks offering credit cards, and it is easier than ever before to pick one up for yourself. It is now possible to walk into a bank or official card issue office, submit your documents and leave with a credit card.
For great customer service and a hassle-free application process, you can visit iOne to apply for the iOne Visa Card. The iOne Card is the key to a whole world of convenience and luxurious modern living, with access to discounts at over 200 merchant partners and at iOne stores. Cardholders can enjoypriority privileges and exclusive promotions and events, as well as optional installment repayment for purchases. The iOne express Visa card is so easy to apply for, it doesn’t even require applicants to open a bank account. Simply pick up an application form at any iOne Store or Service Centre in Phnom Penh.
3 easy steps to getting your own credit card
Now that you know the benefits, you may be asking: How can I get a credit card for myself? Below are 3 simple steps for acquiring your first credit card.
Pick a bank: Banks offer different interest rates and benefits. Simply call the bank of your choice to make inquiries.
Apply: The next step is to submit required documents for the credit card application. Requirements for documents vary from bank to bank. For a secured credit card, personal identification and the amount of money you want as your credit limit may be required. For an unsecured credit card, you will need to bring identification, proof of income, proof of address, and other documents as required by the bank.
Wait for your card: After the card is issued, the bank will call when the card is ready to be picked up.
So go get your first credit card today, for convenient cashless spending!
Note: All information with regard to applying for a credit card has been obtained from customer service officers and promotional materials from banks. For complete and up-to-date information, please contact your bank of interest. To apply for the iOne Card, call iOne at 023 993 161 or email [email protected]