All Cards
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Credit Cards GuideCredit cards are easy, right? You have a credit limit.
As long as your balance isn't as high as your credit limit,
you can pay for things with your credit card.
When you pay for something with your credit card, you don't have to pay for it until later.
You pay interest on your credit card balance and as long as you don't go over your credit limit,
everything's fine.
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FAQ
Type of Credit Cards
Glossary of Common Credit Card Terms
1. Who can have a credit card?
2. What's interest?
3. What's this about 'interest rates' and percentages?
4. What's the 'minimum payment'? As long as I pay that, I'm fine, right?
5. Is a checking account required with the bank I want to apply for a credit card with?
6. How long is the grace period?
7. How much is the credit limit?
8. Changing credit cards?
9. Joint cards ?who is responsible?
10. Are there hidden costs associated with credit cards?
11. My credit card has been lost/stolen. What do I do?
12. How long does zero percent interest last?
1. You need to be at least 18 years old and earning an income to apply for a credit card. The level of annual income required varies by credit card provider. Some require you to earn a minimum of RM18,000, others require more. You don't have to have an account with a particular bank to apply for its credit card.
2. In a nutshell, interest is money that you pay a lender for the privilege of using HIS money to buy something.
3. The interest rate is a way of determining how much you're paying for borrowing money on your credit card. It's stated as a percentage of the outstanding balance on your card, usually as an APR or annual percentage rate. The lower the APR, the less interest you're paying on the amount you owe. How do I get the best credit card deal? When considering a particular offer, make sure you know ALL the details of how your card will work. Be sure to study its terms and costs before signing on.
4. The minimum payment is the lowest amount that the credit card issuer will accept toward your balance. It varies from month to month, depending on your balance. Paying JUST the minimum balance may keep your credit card active and keep the credit card company from reporting your account as delinquent, but it will barely make a dent in the amount you owe. Whenever possible, you should pay more than the minimum amount. In fact, it's best to try to pay off your balance in full each month to avoid paying interest charges.
5. No. You do not need a bank account open with a particular bank in order to apply for a credit card.
6. The grace period is the number of days you have to pay your bill in full without triggering a finance charge. For example, the credit card company may say that you have 75 days from the statement date, provided you paid your previous balance in full by the due date.? The statement date is given on the bill. The grace period usually applies only to new purchases. Most credit cards do not give a grace period for cash advances and balance transfers. Instead, interest charges start right away.
7. The credit limit is the maximum total amount--for purchases, cash advances, balance transfers, fees, and finance charges--you may charge on your credit card. If you go over this limit, you may have to pay an over-the-credit-limit fee.
8. If you're unhappy with your current credit card, it's quite easy to change.
Most credit card providers will organise the transfer of any outstanding debt for you at the time of filling out a new application.
You can also switch between the types of credit card with your existing provider.
9. If a member of your family takes out a supplementary card on your existing card and misuses it, you as the primary holder of the credit card, are responsible for any due payments. If you feel a supplementary card is being misused, cancel it.
10. Strictly speaking, no. However, there are often annual fees, application fees or late fees that apply, the details of which have to be revealed to the applicant. It is important to always read the terms & conditions and all fine print thoroughly so that you fully understand all costs associated with a particular credit card.
11. The first thing you should do immediately is contact the financial institution that issued your credit card and inform them that your card has been lost or stolen. The bank will close the credit card account, thus preventing any transactions from being charged to the account. Upon your request they will then issue you another credit card with a new account number.
12. Credit cards offering zero percent interest balance transfers have limitations. Some creditors offer zero percent interest on all purchases. This is ideal for those hoping to finance a large expense for a short length of time. On the other hand, zero percent on balance transfers only applies to the amount transferred from another credit card. Therefore, interest rates are applied to any new purchases. The interest only period on balance transfers is not permanent. On average, you will have approximately six to twelve months of no interest payments. This is great for quickly paying down balances.