Deep, deep dive
Before you apply for a credit card, go through this checklist of the do’s and don’ts
DO your research beforehand
DO try to keep a low Debt Service Ratio (DSR)
The DSR is the total payments you need to make to pay for all your loans (car loans, mortgages, etc.) per month divided by your monthly income. You should try to keep these monthly payments to below 30% of your monthly income. For example, if your income is RM2,000 a month, you should try to keep your total debt and loan payments to below RM600 each month.
DO check your credit report beforehand
You can access your credit report from CCRIS (Bank Negara) or a third-party credit rating agency like CTOS or RAM Credit Information. If your credit score is low, your application is less likely to be approved by a bank.
DO check minimum income requirements
And consider carefully whether you are able to afford the fees and charges associated with the card.
DON’T apply if you haven’t had a stable job over the last 6 months
You need to show the bank that you have a steady income so they know you’ll be able to make your payments. They won’t approve your application otherwise.