Credit Wise FAQs

Card Smarts
Question If my card offers a grace period, does that mean my purchases are interest-free, even when I carry a balance from month-to-month?
Answer No. If you carry a balance, the issuer will charge interest from the date of posting or purchase (depending on issuer policy) on all new purchases. Generally, your purchases are interest-free only when you meet all of the following criteria:

  1. Your card offers a grace period.
  2. You start the billing cycle with a zero balance.
  3. You pay all new purchases in full by the due date.

(Note: Most cards do not offer a grace period on cash advances.)
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Question Since most credit card issuers use some form of the average daily balance method for calculating interest, will I save more money (when carrying a balance from month to month) if I send in my payment early, rather than waiting until the due date?
Answer Yes. Because the interest "clock" is ticking daily, the sooner the lender posts your payment, the less interest you have to pay.
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Question How can I prevent someone using my personal information to apply for credit in my name?
Answer When someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain, it's called identity theft.

Steps you can take to reduce the risk of your identity being stolen include:

  • Check your credit report at least once a year. Investigate if you find accounts that aren't yours.
  • Rip up, or better yet, shred, any credit card applications, bank or billing statements, and any other sensitive documents.
  • If you don't get a bill for one of your credit cards in any given month, call the issuer immediately. Don't just assume you're off the hook that month.
  • Use a lockable mailbox if possible for incoming and outgoing mail (especially bills).

Learn More About Identity Theft
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Knowing Your Rights
Question If I accept a pre-approved credit card offer, am I guaranteed to receive the card?
Answer No. Card issuers are allowed to conduct a second screening or credit assessment based on the information you’ve provided when you accept a pre-approved offer. If you do not meet the criteria, you may be offered a card with different terms, or you may be turned down.
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Question If a lender turns me down for credit, am I entitled to know why my application was denied?
Answer A lender is not obliged to disclose its reasons for rejecting your application. However, it may do so on a case by case basis at its discretion.
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Debt and Collection
Question Can a creditor turn my account over to a collection agency if I am paying something, even RM1, on the account?
Answer Yes. A creditor can turn your account over to a collection agency if you do not meet the terms of the account. That means if you are late with a payment, or make a partial payment, the creditor has the ability to turn your account over to a collection agency.
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Question Will declaring bankruptcy help my credit history since I will no longer owe any debts?
Answer No. Bankruptcy is one of the most serious marks on a credit report, and it can stay there for a long period of time,, making it more difficult and expensive to get credit. In addition, bankruptcy does not always wipe out all debts, so you may still owe some debts, depending on your situation. See Credit History.
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Question What happens to my credit ratings if I seek help from debt management and credit counselling agency? ?
Answer If you enter a debt management program with a counseling agency, financial institutions might not issue you any new lines of credit. Upon completion of the programme, the credit status will be updated within the next 12 months. Your chances of obtaining new lines of credit will be higher thereafter.

For more information, please call the Agensi Kaunseling dan Pengurusan Kredit (AKPK) toll free hotline at : 1-800-88-2575 or visit any AKPK’s office nearest to you for an appointment.
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