ALL THE ANSWERS FOR YOUR CREDIT CARD QUESTIONS AT BOLEHCOMPARE
You have reached BolehCompare's FAQs page. Find answers to some of the most commonly asked questions about credit cards and credit card applications in Malaysia. For additional reference, you may also go to our main guide to credit cards or the credit card glossary of terms.
How long does it take to process my credit card application?
The processing time varies depending on the card issuer, but as soon as your application has been approved, it normally takes 7 to 10 working days until you receive your card. Make sure that you submit all the relevant documents so that your application can be processed as quickly as possible.
How do I qualify for a credit card account?
Most Malaysian credit card providers require you to be of legal age and a permanent resident/citizen of Hong Kong. You would also need to have stable employment and meet minimum salary requirements, which vary according to the type of credit card. You can learn more about credit card requirements by reading our credit card guide.
How long does it take for my application to get approved?
The period varies from bank to bank but after you submit your application, it would usually take a few days to process. If you are approved for credit, it usually takes 7 to 10 working days for you to get your credit card. To ensure that there are no further delays, fill out the application form correctly and submit all required documents.
How can I start building credit history?
Major credit cards in Malaysia are mostly granted to individuals with good credit standing. To increase your chances, you need to build a credit history first. However, if you are just applying for your first credit card, you have the option to apply for a store or petrol card first. Or, you may also start building a credit history with a secured card. Know more about credit score by reading our credit card guide.
CREDIT CARD FEES AND INTEREST RATES
What does APR mean?
The annual percentage rate or APR is the standard figure used to calculate the cost of credit you are to be charged by the bank or credit card company. A lower APR does not mean that you pay less interest on a credit card, because different banks use different methods to calculate annual interest. You may have to pay different fees for two cards with the same APR. One reason for this is credit card providers sometimes charge interest on transactions at different periods.
Is APR fixed or variable?
Most credit cards in Malaysia offer variable interest rates. A variable APR means that the interest rate is subject to change in direct proportion to the benchmark index. Variable rate credit card accounts are re-priced either monthly or quarterly. Most credit card issuers use Malaysia's Bank Negara prime rate as the main index.
What is an annual fee?
An annual fee is the amount you pay your credit card provider for maintenance of your credit account. Some major credit cards waive this fee for subscribers.
MAKING CREDIT CARD PAYMENTS
What is my minimum payment?
The amount of minimum payment would be calculated according to your outstanding balance. This would usually be indicated in your credit card statement. The minimum payment may factor in unpaid balances from previous balances and any portion of the new balance total owing that is above your credit limit. Make sure to pay at least the minimum amount on your monthly statement, but remember that interest will be charged on any unpaid amount, which will be carried on to your next statement.
What happens if I just pay the minimum amount?
Making minimum payments only on your credit card balance can cost you a great deal of money. Annual interest rates would apply on your unpaid balance. Also, it would take you longer to pay off your debt and the longer you wait, the more interest you accumulate. Ideally, you should settle your monthly balance in full every month or at least pay a little more than the minimum amount.
How do I make credit card payments?
There are various methods you can use to pay your credit card bills including online banking, or payment thru telephone or mail. You can also visit the bank to settle your balance or have them automatically deduct your credit card balances from a current account on a regular basis.
What happens when I make late payments?
The bank could charge you a fee if you pay your monthly statement past the due date. If you are forced to make a late payment due to circumstances beyond your control (such as your credit statement arriving late), card companies could sometimes waive the late payment fee.
What is a credit card chargeback?
Credit card subscribers in Malaysia who make upfront lump-sum payments can apply for a refund of their payments or chargeback for purchases incurred that do not meet their satisfaction. Chargebacks are subject to a set or rules determined by the card issuer
30 Glossary term
3D secure / 3Ds
This is an added layer of security that protects you from credit card fraud. Merchants using 3D secure would require an additional online authentication step every time you make an online credit card or debit card transaction.
Also known as frequent flyer points, Air miles are rewards points that go towards mileage you can use to redeem airline tickets, airport privileges, and other travel-related offers and discounts, including accommodations and tours.
Sometimes also referred to as membership fee, this is the cost charged by credit card issuers for maintaining credit card accounts.
Annual percentage rate (APR)
Also referred to as the annual interest rate, the annual percentage rate is the yearly interest you pay on outstanding credit card balance.
This is the code issued by the credit card provider telling merchants that your card is valid and you have funds to cover the transaction at the time when authorisation is sought.
This is the process of to transferring outstanding credit card balance to another credit account that will allow you to settle outstanding balance by instalments within a specified period, at a lower interest amount. Balance transfers are usually applied to high-interest credit cards, personal loans, revolving loans, overdraft accounts, etc.
This feature is made available by most credit card issuers, wherein the cardholder is allowed to withdraw cash over the counter or via ATMs. The amount you withdraw is deducted from your credit limit or funds on deposits. Cash advances are subject to a certain limit.
Card not present transaction
A type of transaction wherein the cardholder is unable to physically supply the card to a merchant such as with over-the-phone, online, or mail order transactions. In such cases, bank authorisation would be sought by the merchant.