How does a Rewards Credit Card work?

To put it simply, a rewards credit card allows you to collect and accumulate reward points that can be redeemed for a range of benefits, such as merchandise, vouchers and discounts. Rewards points are credited to your account with every purchase you spend on your card. The value of each reward point varies between banks.

What is a reward multiplier?

A reward multiplier is the number of points awarded to you per ringgit spent on the selected merchant. In short, you need to find out how much you need to spend to get every reward point on your credit card. For instance, a credit card’s reward multiplier is 0.5 when you spend RM100 which means you get 50 rewards points. Hence, you should find out if it is easier or harder for you to earn points when you are choosing a reward credit card.

What is a reward redemption value?

This differs across banks and the type of gifts you seek to redeem such as vouchers or electrical items. Basically, it translates into the value of your reward points after a redemption from the bank.

Which bank gives me the most rewards value?

Every bank has a partnership with different types of merchants and offers exclusive deals for cardholders. Before choosing a rewards credit card, you can look at the bank’s partner merchants such as grocery stores, petrol stations, airline operators, restaurants, online shopping stores, utility brands and more.

What can I redeem with my rewards points?

Most banks offer a wide range of choices for cardholders when it comes to the redemption of rewards points. You should be able to choose from electronic gadgets, electrical items, travel accessories, bags, kitchen wares, branded accessories, vouchers, air miles (such as AirAsia BIG Points and Enrich Miles), and outdoor gadgets. Hence, always request to look at their catalogue for redemption before choosing a rewards credit card to know if you are interested in their offerings.

What is the maximum cap of rewards points I can earn?

Some banks may put a cap on the amount of reward points on a daily or monthly basis and may also impose minimum spending requirements in order to earn reward points. Hence, you need to check the terms and conditions with the banks before applying for a rewards credit card. This way, you will know whether it fits into your spending pattern and allows you to optimise your earnings.

Am I eligible to earn rewards points on all spend?

It depends on the type of credit cards and banks that issue them. Some banks only allow you to earn points from certain categories while others allow you to earn from all spending but at lower reward multiplier. Before you choose a rewards credit card, you need to know the categories of spend you are entitled to earn rewards points in order to get the most out of your credit card.

How to apply for a rewards credit card?

- Financial comparison websites - Bank branches - Bank websites - Agents

How to get the best out of a rewards credit card?

- Spend with one card - Check validity/expiration date of your rewards points - Read the fine print to ensure you get what you think you’ll get - Make sure your redemption value is worth it - Spend when you can earn the most - Choose a rewards credit card with zero annual fee and other features if possible

How does cashback work?

Each cashback credit card will have an accompanying percent rate (e.g. 5% cashback on groceries). This is the amount you earn back whenever you charge something to your card for a certain spend on that category. If your credit card offers you a cashback of 5% and your monthly spend was RM100, you would receive RM5 in cashback and your purchases would amount to only RM95. The cashback is usually paid to your account at the end of your credit card statement cycle.

What to consider when applying for cashback credit card?

In order to get the most out of using a cashback credit card, here are some pointers you should take note to help you select the right card for your spending. Understanding how a cashback credit card works, and the features, along with the common terms will help you enjoy the most saving

What are the pros and cons of a cashback credit card?

Pros - You can save money - Extra cashback on certain spending categories - Enjoy introductory rates and bonus cashback Cons - You spend more

Where to apply for cashback credit card?

You can use our free comparison tool to find the best cashback credit card to suit your spending style. You can then apply for free through our website. If not, you can apply through the bank’s website or walk into any one of the bank branches in Malaysia.

Category | CompareHero

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