1. Credit cards are not free money

A credit card is not free money, so you should always spend within your means (no matter what credit limit the banks give you!).

2. Credit card interest rates are high

Credit cards usually charge an interest of 15-18% per year! This means that if you buy things on your credit card, be sure to pay your credit card balance off each month to avoid these charges.

3. Meet more than the minimum payments

If you only meet the minimum payments on your credit card, you’ll end up paying A LOT in interest.

4. Use credit cards only for short-term financing

With such high annual interest rates, it is best to use credit cards for things you can pay-off quickly. For longer-term loans, consider a personal loan instead.

5. Credit card debt can result in bankruptcy

Credit card debt is the 4th largest cause of bankruptcy in Malaysia. This is why it’s important to use your credit card responsibly.