Afraid to use a credit card after hearing horror stories of its use? Especially since many have been taught that having a credit card is a bad thing. This article will explain all the misunderstandings and myths about credit cards.

Find out the facts about credit cards to help you get the most out of them.

credit card rhb

Myth 1: Credit card interest rates are charged immediately after use

Fact: When you make a payment with a credit card, you actually borrow money from a bank. However, you will not be charged interest immediately. Almost all banks in Malaysia have a 20-day interest free charge period for credit card usage. If you pay the full amount within 20 days, you will not be charged any interest. However, if you only make the minimum payment, you will be charged the unpaid balance.

Myth 2: You only need one credit card

Fact: While having more than one credit card can make it difficult for you to track its use, limiting credit card ownership to one is also unwise. Depending on your expenses and lifestyle, it may be advantageous to have a credit card for your expenses. This is because each credit card has different rewards and advantages. For example, one credit card is used to collect cash rebates, and another piece is used to collect Air Miles while traveling.

Myth 3: Using a credit card puts you in debt

Fact: Are you worried about going into debt if you have a credit card? If you are disciplined about using a credit card, using it won’t bother you. You can’t rely on cash alone, especially if you just miss out on the credit card reward. You can even save on using the right credit card. To do this, you need to use a credit card that suits your spending style. For example, family members can benefit from a cash rebate credit card when making gasoline or daily expenses. If you travel frequently, you can save on airfare with your Air Miles credit card.

Myth 4: Asking more than 1 credit card will ruin your credit score

Fact: Your credit score is determined by many factors, such as your level of discipline in repaying your financial commitments. Applying for a credit card will not negatively affect your credit score. All you need to focus on is making a timely payment if you apply for an additional credit card. Making late payments is one of the major factors that can worsen your credit score.

If you are a major credit card holder, and have an additional credit card, it can have a bad effect on your credit score as well. This is especially so when additional credit cardholders are always slow to make payments, as the consequences will be borne by the main credit cardholder, you.


Once you’re familiar with the myths and facts of credit cards, don’t be afraid to apply for a credit card for your convenience. Remember, if used correctly, credit cards can be of great benefit!