{"id":17993,"date":"2023-09-16T05:57:33","date_gmt":"2023-09-15T21:57:33","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/how-to-choose-your-first-credit-card.html"},"modified":"2026-03-26T15:59:29","modified_gmt":"2026-03-26T07:59:29","slug":"how-to-choose-your-first-credit-card","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/credit-cards\/how-to-choose-your-first-credit-card.html","title":{"rendered":"Choosing Your First Credit Card In Malaysia: What You Need To Know"},"content":{"rendered":"\n

Are you planning to get a credit card for the first time? With different types of credit cards available, you need to learn how to compare credit cards to see which one is suitable for you. Learn more by reading this quick beginner\u2019s guide to choosing your first credit card.

If you’ve found your way to this page, chances are you’re relatively new to the world of credit cards and are contemplating getting one for yourself. In this day and age, obtaining a credit card may seem like a customary step in one’s journey into adulthood… or is it?

But before you make the jump, it\u2019s important to first make an informed decision on whether or not you\u2019re ready to get your first credit card. Take this article as your first credit card guide, as we\u2019ll equip you with what you need to know before you get your first credit card. <\/p>\n


How To Choose The Right Credit Card For Yourself <\/span><\/strong><\/h2>\n

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If you didn\u2019t know, there are many different types of credit cards, and with that, there are also many different types of credit card rewards. You have to find one that suits your lifestyle and preferences so that you can really get the most benefit out of it. <\/p>\n

So, how to choose your first credit card? Generally, there are a few types of credit cards and these are four popular types best suited for first-timers: <\/p>\n

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  1. Cashback<\/span><\/strong><\/a> <\/strong>– Converts the money you spend back into cash rebates. The amount you get back depends on the cashback rate of the credit card. <\/li>\n
  2. Rewards<\/span><\/strong><\/a> – Point accumulation with every Ringgit you spend. Can be used to redeem vouchers and items later on. <\/li>\n
  3. Islamic<\/span><\/strong><\/a> – Shariah-compliant with the prohibition of gharar (overcharging) and riba (interest). Comes with takaful coverage and the convenience of paying Zakat. <\/li>\n
  4. Airmiles<\/span><\/strong><\/a> – Designed to let you earn air miles every time you spend. Comes with loyalty programs offered by airlines. <\/li>\n<\/ol>\n

    Related: When and How to Move Beyond Your First Card<\/span><\/a><\/p>\n

    Most first-timers would either go for a cashback or rewards-based<\/span><\/a> credit card. If you\u2019re wondering which is the right option for you, just ask yourself – would you prefer to get money back as is, or would you rather get a gift or a voucher after accumulating points? There\u2019s no correct answer – just choose one that you\u2019d rather have. <\/p>\n

    As this is your first credit card, you may want to look for a card that has zero annual fees<\/span><\/a>. Most cards typically come with annual fees (some as low as RM30, some as high as RM1,300), but some can be waived according to the terms set by the issuer (e.g. swiping more than 12 times a year, swiping a minimum of RM50,000 a year). A card with zero annual fees will make it fuss-free for a newbie like yourself. <\/p>\n

    To compare all credit cards with zero annual fees, just click here<\/span><\/a>. <\/p>\n


    8 things to remember when it comes to using your first credit card <\/span><\/strong><\/h2>\n

    As we mentioned at the beginning, having a <\/span>credit card is a huge responsibility<\/span><\/a> on your end. As a first-timer, you really need to be prepared to control the power that will soon be in your hands. We don\u2019t really want to quote lines from a spider superhero movie, but with great power truly does come great responsibility.<\/span><\/p>\n

    1. Avoid Purchases Beyond Your Means<\/span><\/strong>
    <\/span><\/strong>
    <\/span><\/strong>If you find yourself using your credit card simply because you lack the means to afford something, it’s a red flag that you may be misusing it. Always ensure your spending aligns with your financial capabilities to prevent accruing unnecessary debt.<\/span><\/h3>\n

    2. Don\u2019t inflate your lifestyle – you don\u2019t need to prove anything to anyone <\/span><\/strong><\/h3>\n

    Just because you have the power to spend more, doesn\u2019t mean you should. Don\u2019t start buying RM20 lattes every morning, unless you can afford it. <\/span><\/p>\n

    3. Always pay your bills on time, and in full <\/span><\/strong><\/h3>\n

    Even if you follow the first two tips, never neglect the importance of <\/span>paying your bill<\/span><\/a>s punctually and in full. Delayed payments can trigger high interest charges, typically around 15%, which can snowball into future statements, causing financial strain.<\/span><\/p>\n

    4. Your Credit Score: Make or Break<\/span><\/strong><\/h3>\n

    Your financial goals, be it purchasing a car, or a house, or funding a business venture, may depend on your credit score. Responsible credit card repayment is pivotal in maintaining a positive credit score, and ensuring your loan applications are approved.<\/span><\/p>\n

    5. Monitor Your Credit Utilization<\/span><\/strong><\/h3>\n

    Strive to keep your credit utilization ratio at around 30% (credit used versus credit limit). A lower ratio positively impacts your credit score. For instance, if your credit limit is RM12,000, aim to maintain a credit balance of no more than RM3,600 as prudent practice. Keep track of your credit utilisation <\/span><\/p>\n

    6. Build a Financial Safety Net<\/span><\/strong><\/h3>\n

    It’s never too early or too late to start saving for an emergency fund. While a credit card can assist in emergencies, you’ll still need to repay borrowed funds. Begin saving a portion of your income to comfortably settle any future credit card utilization during unforeseen circumstances.<\/span><\/p>\n

    7. Always check your credit card statement <\/span><\/strong><\/h3>\n

    Whenever your statement comes, check each line to ensure that there are no discrepancies. If you\u2019ve been charged for something you did not authorise, get in touch with your bank immediately to see how you can rectify the situation. <\/span><\/p>\n

    8<\/span><\/strong>. <\/span>Don’t Forget to Redeem Your Rewards<\/span><\/strong><\/h3>\n

    On a lighter note, remember that credit card rewards points can expire. Periodically check your accumulated points and explore redemption options.<\/span> <\/span><\/p>\n


    You\u2019ve never had a credit card before\u2026 so should you even get one? <\/span><\/strong><\/h2>\n

    If you’ve never owned a credit card before, you might have encountered numerous cautionary tales about their usage. Let’s be clear – credit cards can indeed lead to debt<\/span><\/a>, but only if you fail to practice sound financial habits. In the past, when credit cards lacked the multitude of rewards and benefits they offer today, there was little incentive to use them. However, in the contemporary landscape, having a credit card can be a smart choice. When managed prudently, it opens up a world of advantages that cash alone cannot provide.<\/p>\n

    Here are the advantages of using a credit card: <\/strong><\/p>\n