In today’s world, credit cards are more than just a tool for making purchases; they’re a symbol of convenience. Whether you're buying a fancy suit or treating your special someone to a luxurious dinner, credit cards offer a simple and fast way to pay. No need to carry around a heavy wallet stuffed with cash—just swipe and go.

But, as with most things in life, convenience comes at a price. Many credit card users often overlook the fees associated with their plastic companions, and these charges can add up faster than you think. Here’s a closer look at the different types of credit card fees and charges that could leave you paying more than you expected.

1. Joining Fee: A One-Time Cost

Not all credit cards charge a joining fee, but some still do. It’s essentially a registration fee that you pay upfront when signing up for a card. Depending on the bank and the type of card you’re getting, this fee can range from RM50 to RM100. While it may seem like a small sum, remember that it’s an additional cost to factor in when choosing a credit card.

2. Annual Fee: The Yearly Expense

This is a recurring fee that banks charge once a year. The amount varies depending on the type of credit card—classic, gold, platinum, or business cards all have different rates. Some banks may even charge you for supplementary cards, so if you’ve added someone to your account, that could mean extra costs. Be sure to check if the perks that come with your card justify this annual charge.

3. Government Service Tax: The Mandatory Charge

In line with the Service Tax Act 2018, the government imposes an annual service tax of RM25 on each principal and supplementary credit card. While it’s a fixed charge, it’s important to remember it exists, as it contributes to the total cost of owning your card.

4. Late Payment Charges: Don’t Miss the Deadline

One of the most common penalties cardholders face is the late payment fee. If you miss a payment, expect to pay a portion of the outstanding balance as a penalty. This is usually around 1% or a minimum of RM5 to RM10, whichever is higher. Depending on your bank, late payment charges can go as high as RM50 to RM100, so always make sure to pay your bills on time.

5. Cash Advance Fee: Withdrawing Money Comes at a Cost

Credit cards aren’t just for shopping—they can also be used to withdraw cash, just like a debit card. However, using your credit card to get cash isn’t without its own costs. Cash advance fees can range from 3% to 5% of the withdrawn amount. Alternatively, some banks charge a fixed fee of RM25 to RM50 per transaction. Either way, it's usually a costly option, so use it sparingly