The biggest mistake I’ve made since I started working is simply applying for credit from banks without first considering the chances of my application getting approved. The most common banking product that people applied for on a whim is none other than credit card.
Sure, you see a nice little luggage that you could take home, and you feel compel to fill up a form and give your income details – how bad can it be?
The thing with credit card application – or any credit application – is, rejection hurts. And not just your feelings but also your credit score.
Of course, now that I know, I would never do that again.
It’s best to take calculated risk when applying for a credit card. Things like your credit score, income, existing credit lines and even your job matter!
Credit card issuers or banks love salaried employees the most because a set salary streamlines the income calculation in the qualifying process. However, which job has higher chance of approval?
Looking at our numbers, here are the top 10 jobs (from the least likely to get approval) and their chances of getting credit card approval:
Approval rate: 30%
Most diploma or degree-holders start their career as an executive in the field they’ve chosen. With executives aplenty in the country, this occupation makes up the second highest applications for credit card on iMoney.my.
However, this does not make it the job that gets easily approved for credit card applications in Malaysia. There could be a few reasons for this: likely because most applicants working as executive fall in the middle-income earners group and also due to the fact that most of these applicants may not have been working long enough to qualify. This group has been struggling with the escalating household debt and may have negative credit report as a reason.
Here are some of the factors fresh graduates need to consider when choosing a credit card in Malaysia.
Approval rate: 31%
Sales is often looked at as the go-to job for one who wants to scale their income quickly because most sales jobs are commission-based.
However, this also means the income is rarely consistent, unless you are stellar sales person who consistently hit your high sales targets. It’s likely due to this reason jobs in sales are relegated to the ninth spot in this top 10 list of jobs that will likely get their credit cards approved since banks like to see a consistent income stream.
Approval rate: 38%
Whether you are a graphic, fashion or an interior designer, your role is one that involves the use of creative and technical skills. However, these design skills may not translate as well as you’d like for your finances, as the approval rate for all designers is at an average of 38%.
According to PayScale, a graphic designer earns an average salary of RM29,972 per year while senior graphic design earns an average of RM45,393 per year.
The salary range would likely only qualify the applicant for an entry-level credit card, such as the Maybank 2 Cards with minimum income requirement of only RM2,500 a month.
Approval rate: 40%
Surprisingly, teachers get approved for credit card pretty well compared to executive and sales. This is probably due to teacher-specific credit card by BSN, the BSN 1 TeachersCard MasterCard Credit Card-i.
Other than the usual reward points accrued from your overseas and local spending, the card also contributes 0.2% of all retail spend to Yayasan Guru Malaysia Berhad (YGMB).
It does help bring up the approval rate when there is a card catered just for the teachers as there will be a specific criteria approval for this single profession.
Approval rate: 46%
Architecture is a job where experience strongly influences the income. The average salary between RM50,000 and RM60,000 is considered on the high-middle-income level which inches the job up the list.
Here we enter the area of professionals. Architects are seen as professions with not only high-middle income earners but more importantly – as those who have more stable careers. Ideal for credit products.
Approval rate: 48%
As engineering is an extremely broad discipline, there are many specialised fields of engineering, such as civil, electrical and electronic, chemical and mechanical engineering. Taking up an engineering degree can be pretty expensive, according to EduAdvisor.my.
Due to the many disciplines and the specific nature of the job, a mechanical engineer gets paid about RM43,000 per year on average. These professionals are seen to have stable incomes and high earnings potential which is also ideal for banks issuing credit cards.
A tech-savvy engineer would most probably appreciate cards like CIMB Cash Rebate Gold, where it offers 5% cash back on online spend.
4. Human Resources
Approval rate: 48%
Human resources (HR) department is an integral part of any sustainable company. From rewards and compensation, to benefits and training, the role of HR has expanded to more than just payroll.
Managing the company’s talent pool is not an easy task, and HR talent has learnt how to roll with many pressing issues such as brain drain, low quality graduates and the recent bout of retrenchments in the country. Perhaps knowing all these issues before-hand has made these employees more adept at managing their own money, and keeping their credit score positive.
A HR officer gets paid as low as RM21,291 per year, but has the opportunity to climb up the career ladder, with a pay as high as RM145,488 a year as a HR manager.
This has attributed to a higher approval rate for credit card application last year, and we foresee 2016 to be another stellar year for these salaried employees in getting the banking products they need.
Approval rate: 51%
Middle management is definitely not an enviable job level in the hierarchy of a company. Your pay is not high enough to be in the major decision-making level, not low enough to just work a nine-to-five job.
However, there is one perk that can make being a manager just a little bit more bearable – you will most likely get the application of your credit card in Malaysia approved. This group brings in the highest number of credit applications too!
Regardless of your industry, you can be just a little bit more confident in your credit card application working as a manager.
One card that makes your life easier is the Maybank Visa Signature, which offers 5% cash back on petrol and grocery every day.
Approval rate: 59%
This is quite a no-brainer. One of the pre-requisite of working in the accounting, finance and banking industry is, of course, to be good in math, which in most cases (not all), translates to being good with finances.
This could be the major contributing factor to most people holding a job in the finance capacity ranking second in the approval of their credit cards. At 59%, your chances of getting your plastic approved is pretty high!
Approval rate: 69%
An apple a day, keeps the doctor away. But not from banks! When it comes to credit card applications, doctors seem to get their credit card approved easily in Malaysia. The average pay for general practitioner is RM71,761 a year, and can go up to RM205,659 for the more experienced doctor.
As a profession that maintains and restores human health through the practice of medicine, a doctor can undoubtedly maintain or restore his/her financial health and get the credit card that they need with no issues. They also have very stable income as well as very high earnings potential which helps keep their credit scores healthy.
Are you working in any of the jobs above? If so, it’s time to get an upgrade on your credit card as you will most likely get an approval on it. However, do remember, your job is just a tiny part of your credit application process. Most importantly, you need to ensure you have a good credit report.
* Information on salary is taken from PayScale.
Main image from Business Credit Blogger