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A Complete Guide to Credit Card in Malaysia
A Credit Card is a financial tool that allows users to make purchases or access funds on credit up to a pre-approved limit. Cardholders repay the borrowed amount later, either in full or through monthly installments. Credit cards offer convenience, reward points, cashback, and secure transactions.
What is a Credit Card Repayment?
A Credit Card Repayment is the process of paying back the amount you owe on your credit card to the bank or financial institution that issued it.
A Credit Card Repayment is the process of paying back the amount you owe on your credit card to the bank or financial institution that issued it. When you use a credit card, you’re borrowing money from the issuer to make purchases. At the end of each billing cycle (usually monthly), you receive a credit card statement showing:
- The total outstanding balance (the total amount you owe)
- The minimum payment due (the smallest amount you must pay to avoid penalties)
- The due date (the last date to make payment)
Home loan repayments are usually made monthly and consist of two parts:
Principal
The portion that goes toward reducing the original loan amount.
Interest
The cost charged by the bank for lending you the money.
How Credit Card Repayments Work
Credit card repayments work by paying back the money you’ve borrowed from your card issuer for purchases made during a billing cycle. Each month, you receive a statement showing your total outstanding balance, minimum payment due, and due date. You can choose to pay the full balance (avoiding any interest), make a partial payment (paying some interest on the remaining amount), or pay only the minimum due (resulting in higher interest costs over time). If you miss a payment, you may face late fees, higher interest rates, and a negative impact on your credit score. Paying your balance in full and on time is the best way to manage a credit card responsibly and avoid unnecessary charges.
