Why Credit Cards Are NOT Evil (If You Use Them the Right Way)

 

Credit Cards Are Just Tools

In Malaysia, credit cards get a bad name:

• “Hutang kad kredit banyak!”

• “Jangan pegang kad kredit, bahaya!”

But the truth is, credit cards are NOT evil — misuse is.

Used wisely, credit cards become powerful tools:

• Protecting cashflow

• Building credit history

• Earning cashback and rewards

• Tracking expenses better

Let’s dive deep into how Malaysians can master credit cards safely.

Myths About Credit Cards

✅ Myth #1: Credit Cards = Debt

Reality: Only if you spend money you don’t have.

✅ Myth #2: Debit Cards Are Always Safer

Reality: Credit cards offer better fraud protection.

✅ Myth #3: It’s Hard to Control Spending

Reality: Only if you lack discipline. Otherwise, auto-payments and setting limits work.

Benefits of Using Credit Cards (Wisely)

✅ Cashback Savings
E.g., Certain credit cards offers certain percentage of cashback on groceries and petrol.

✅ Reward Points
Points can be exchanged for vouchers, free flights, or even cashback.

✅ 0% Installment Plans
For large purchases (e.g., laptops, furniture), 6 or 12 months 0% plans can help cashflow — but only if needed wisely.

✅ Emergency Buffer
Medical bill, car breakdown? Credit cards provide immediate funds (repay immediately after).

✅ Credit Score Building
On-time repayments = better chances for car loans, home loans later.

How to Use Credit Cards Responsibly

✅ 1. Always Pay Full Amount Every Month
Never carry forward a balance. Avoid the high 15%–18% interest rates.

✅ 2. Use Credit Card Like Debit Card
If you don’t have the money, don’t spend it. Simple rule.

✅ 3. Limit to 1–2 Cards Maximum
Easier to track, harder to overspend.

✅ 4. Set Spending Limits
Use apps like Touch n' Go eWallet, MAE app, or even the bank’s app to control spending.

✅ 5. Focus on Cashback or Points That Fit Your Lifestyle

• Grocery spender? Cashback cards.

• Frequent traveler? Air miles cards.

Malaysian-Specific Good Cards (Examples)

• Public Bank Quantum Mastercard: 5% cashback on dining, online spending

• Maybank 2 Cards Gold: 5x TreatsPoints on weekend spend

• Hong Leong Wise Card: 8% cashback for selected categories

(Disclaimer: This is not a recommendation — just sharing options.)

Caution: What to Avoid

❌ Making only minimum payments
❌ Applying for too many cards at once (hurts credit score)
❌ Spending for points alone ("Oh look, free luggage if I spend RM5,000" — no thanks!)

Conclusion: Be the Master, Not the Victim

Credit cards are not your enemy.
Ignorance and impulse spending are.

Learn the rules. Use cards to your advantage. Enjoy cashback, rewards, and a strong financial reputation — without falling into debt traps.

Because the real “evil” is not understanding how money works — not the card itself.