What
is the Credit Card Splash and Dash?

No Folks,
it’s not the great train robbery. The credit card splash & dash is a sneaky
trick to earn cashback on a RM10,000 purchase with only a RM2,500 limit credit
card. Don’t pinch yourself, you’re not dreaming and while it may sound too good
to be true, the credit card splash & dash is completely legal and 100%
possible. So before we get down to the juicy details, here’s a little
background information.

Credit
Cards have a Good and Bad Side

Just like
Dr. Jekyll and Mr. Hyde, credit cards have a good side and a bad side. If you
use them the rightway, they’ll
shower you with rewards, if you don’t, they’ll punish you with late surcharges
and hidden fees.

For those who’ve had credit card problems, or
tend towards undisciplined overspending, you will find this article less
useful. However for the debt-free and disciplined, there’s profit to be had as
long as you strictly follow a simple golden rule:

Always pay off your credit card
bills on time!

For the more forgetful, the best way to
accomplish this is by setting up a direct debit from your current or checking
account to pay your credit card in full each month. By choosing direct debit,
you will only be borrowing credit for a short period of time so the credit card
will not charge you any interest.

We Malaysians have the impression that credit
cards equal debt. But if we break a credit card down, they in fact have two
functions:

1. They let you pay for things
2. They let you borrow for things

By increasing #1 and reducing #2, credit
cards become a useful tool that can literally earn you RM100′s or even RM1,000s
per year.

What
is a Credit Card Direct Debit?

A credit
card direct debit is a pre-authorized payment system where the balance on your
card is automatically deducted from your bank account at the end of the month.

For Example,

If you
charged RM1000 to your card this month then the credit card company will
automatically deduct RM1000 from your account.

Setting up a
credit card direct debit means that you’ll be paying more (and reaping the
benefits) rather than borrowing more (and paying the late payment interest).
Once you’ve set up a credit card direct debit system to help you with the
timeliness of your payments, you’re all ready to Splash and Dash.

Splash
and Dash

Suppose
you’re interested in buying a RM10,000 LCD TV but you only have a RM2,500 limit
on your credit card.

Step 1:
Splash

“Splash”
your credit card with extra funds by transferring RM7,500 from your current/savings
account into your credit card.Be sure
to do so at least a few days before you make your purchase to make sure then
funds clear into your credit card.

Step 2:
Dash

“Dash” down
to your friendly electronics store and make your RM10,000 purchase.

Step 3:
The Reward

Now that
you’ve made your purchase, you can now enjoy your cashback and rewards points
on the entire sum of RM10,000 (as opposed to absolutely nothing if you chose to
pay by cash).

A Word
of Caution…

1. Credit
   card companies can be sticky with large purchases at times so be sure to inform
   them in advance that you’ll be making a big transaction to avoid them flagging
   your card as stolen. The last thing you want is your card getting
   declined….that would definitely ruin the mood.
2. Be aware
   of maximum credit balances. Some credit card companies have a maximum balance
   on their cards so you might want to find out what that is. To earn more
   rewards, request for a higher credit limit on your card.

pictures courtesy of Freedigitalphotos.net

 

• TAGS:
• Bill Payments
• Cashback
• Credit Cards
• Direct Debit