Page 23 - FIN435 RHB vs BPMB

2. Credit card

RHB Bank Credit Card to be used primarily for the payment of goods and services. Where
any amount of the credit utilised by you has not been settled in full on or before the due date,
the unsettled amount will be subject to finance charges. RHB bank provides 8 types of
credit card and each card have different amount minimum and maximum amount. Interest
rate for those cardmembers who promptly settle their minimum payment due for 12
consecutive months are 1.25% per month while 15% per annum. For cardmembers who
promptly settle their minimum payment due to at least 10 months or more in a 12-month
cycle. The 12 months minimum payment due to cycle will not apply to new cardmember are
1.42% per month and 17% per annum. Lastly for cardmembers who do not fall within the
above categories are chaged 1.50% per month while 18% per annum. In additions for cash
advance fee, 5% of the transaction amount or a minimum of RM15.00, whichever is higher
will be charged on all cash withdrawals and licensed betting transactions. For late payment
charges maximum of 1% of the outstanding balance or a minimum of RM10, whichever is
higher, subject to a maximum of RM100. A fee of RM50 may be charged for excess limit
transaction and RM50 per card replacement fee. Below are advantages and disadvantages
of credit card.

ADVANTAGES DISADVANTAGES
 Using credit card is safer than  Paying high rates of interest.
carrying cash.

 A credit card can build your credit  Credit damage.
rating.

 Earn reward points when you spend.  Credit card fraud.

 Credit cards give an emergency line  Cash advance fees and rates.
of credit.

 Can consolidate debts and save  Annual fees.
money on existing balances.

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