Most of the people in Malaysia think that credit card brings more disadvantages than advantages. Is that true? Yes, it is statisticly proven that credit cards bring more disadvantages. According to my parent’s experience, they use the credit cards oftenly until they get annoyed to have even a credit card. There are many peoples who are in the same boat. Credit cards brings more disadvantage because a person who is using a credit card wouldn’t know the limit of spending, can be exploit when the cards is stolen or loss and has to pay at least 10% of interest.  

Firstly, credit card users often encounter a problem that is spending without knowing their limits. They will just buy anything they like without checking the prices. Some wouldn’t know how much they spent for a particular things that they bought. Especially ladies, they will spend most on make-up products and so on without knowing their limits.

Moreover, credit cards also can be exploits when the cards has been stolen or lost. In most cases, lost credit card will be used by the thief within 24 hours if the credit card owner didn’t take an inisiatif to terminate the line. The loss of credit cards is also due to the carelessness of a credit card holder.

Other than that, with the usage or credit cards, credit card holders have to encounter another problem which is they have to pay at least 10 % of interest. The higher they spent on a particular month, the higher the rate of interest. In addition, if the payment is paid late, there will be an additional interest charged.

Paying at least 10% of interest, being exploit when the card is stolen or loss and didn’t know the limits of spending are the disadvantages of credit cards. Therefore, due to those disadvantages, it’s better for Malaysian citizen’s to reduce using credit cards.