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What is a Cashback Credit Card?
Cashback credit cards convert every RM that you spend into cash rebates. The rebate you get back depends on the cashback rate of the particular credit card.
Each cashback card has an accompanying percent rate (ex. 5% cashback on groceries). This is the amount you earn back whenever you charge something to your card for a certain spend 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. You automatically get more savings from your cashback credit card at the end of every month. The cashback is usually paid to your account at the end of your credit card statement cycle. However, some cards offer you cashback based on a minimum spend or tiered rates depending on the amount you spend. It's important to read the fine print of your cashback credit to understand its terms and conditions.
Most cashback cards give rebates on specific spend types, such as petrol, dining, or groceries. If a significant portion of your budget goes to a particular spend type, you save a lot of money when you use a cashback credit card to pay for these purchases. Instead of paying for these in cash, use your cashback credit card instead and get a portion of your money back.
However, in order to save money you will need to ensure that you pay off the outstanding amount on your credit card. This is because, the rate at which you earn the cashback will usually be lower than the interest rate charged on your outstanding amount.
Use our free comparison tool to help you find the best cashback credit card to suit your lifestyle needs. Once you have found the right card for you, apply online through our website. If we currently do not have a deal with the bank, you can apply online through the bank website or walk into any one of the banks branches. Ensure that you meet the minimum requirements before applying to improve your chances of getting your credit card approved.
Cashback credit cards return a percentage of the money you spend back to you.
A cash rebate however, is a form of a discount on a particular product and is most commonly found in big ticket items. For example, if you wanted to buy a RM40,000 car that offered a cash rebate of RM5,000 you are essentially only paying RM35,000 for the car.
Rewards is usually an incentive program that allows you to earn reward points whenever you use your credit card. These points can then be redeemed for a product from the rewards programme catalogue.
However, these terms may differ from bank to bank, so it is best to always read the terms and conditions and contact your bank for further clarification.
While it may seem like banks are giving out free money with cashback, this isn't the case. Many banks offer cashback on their own terms and conditions, for instance, with a maximum spend of RM1,000 and above and at a monthly cap meaning there is a limit to the amount of cashback you earn per month. The cashback you receive is limited. Other cards may offer cashback on specific categories like petrol, groceries, or online shopping only. This is why it is crucial to read and understand the fine print associated to your credit card in order to make the most savings on your spend. Banks will always make money through credit cards from things like annual fees, merchant fees, and the interest rate charged on your outstanding debt.
The Standard Chartered JustOne Platinum Mastercard offers up to 15% cashback (which is one of the highest rates in the market) on petrol, online purchases and auto-billing. The Hong Leong Wise Platinum offers 10% cashback on any 2 categories you pick, which can include groceries and petrol. The HSBC Amanah MPower Platinum Credit Card-i offers up to 8% cashback on your petrol and groceries everyday. The Maybank Islamic MasterCard Ikhwan Gold gives you 5% cashback on your petrol and your groceries but on Friday and Saturday only.
The highest cashback rate in the market is with the Standard Chartered JustOne Platinum Mastercard at 15% cashback. However this is only for spend on petrol, online purchases and auto-billing. It also comes with tiered cashback rates depending on the amount you spend per month within these categories. The maximum monthly cap you can earn with the card is RM85. It is best to read the fine print and the terms and conditions when applying for a cashback credit card to ensure you gain the most savings from the categories that are most beneficial for you.
Almost all banks in Malaysia offer cashback credit cards including Standard Chartered, HSBC, Citibank, Public Bank, UOB, Hong Leong, CIMB, RHB, Maybank, and many more. Use our free comparison tool to find the best cashback credit card for your needs. You may then apply through our website. If we don't have a deal with the bank, you can apply directly through their website or walk into any one of the banks branches.
Depending on your credit score, you may be able to hold multiple credit cards. However, the number of credit cards you have and your repayment behaviour will affect your credit score. In 2011, Bank Negara Malaysia introduced a guideline stating that anyone with an annual income of RM36,000 or less can hold credit cards from a maximum of two issuers. Focus on choosing one or two credit cards which suit you and your requirements best. Eventually, if you prove your good repayment behaviour, you will be offered a higher credit limit.
As long as you pay your credit card in full and on the date in your credit card statement, you do not have to pay interest on your credit card.
In order to be eligible for a credit card in Malaysia, you need to be at least 21 years old and financially stable. Each credit card issuer has its own minimum annual income requirement. In most cases, a minimum annual income of RM24,000 is required, but this could vary from bank to bank. You don't need to have an existing account with a bank to apply for a credit card from them.
Remember to always research the best credit cards before applying!
If you're earning an annual income of RM36,000 or less, the maximum limit extended to you will not exceed twice your monthly income for every credit card issuer. This guideline does not apply if you are earning more than RM36,000 per annum, so you should consult your credit card issuer in Malaysia to find out how much your credit limit will be. Your credit limit can also be raised if you show good repayment behaviour. You can talk to your credit card issuer about raising your credit limit.
You can call the bank to ask for a review in your application. However, approval for an increase in credit limit is usually determined on your credit score. By being prompt in paying your monthly bills, the bank might increase your credit limit.
Choose a credit card that complements your lifestyle. Cashback cards help you save on groceries, petrol, and dining. Air miles cards let you earn miles for every RM1 you spend, which you can redeem for free tickets. Rewards cards let you earn points for every RM1 you spend, which you can redeem for vouchers.
By using our comparison tools, you can quickly see which credit card has benefits that are most useful to you. Make sure to compare annual fees and effective interest rates so you know what extra charges apply.
Credit card issuers provide various methods of payment, from online banking, paying through telephone or mail, or visiting a branch of the bank to settle the balance. The most convenient method is to create a bank account and have credit card balances deducted automatically every month.
The processing time varies depending on the card issuer, but as soon as your application has been approved, it normally takes 7 to 10 working days until you receive your card. Make sure that you submit all the relevant documents so that your application can be processed as quickly as possible.
If you suspect an unauthorised transaction has been made on your account, check if you made any other purchases on the same day before contacting your bank. The item could have been mistakenly billed under a different name. Also, ask anyone who uses the card with your permission (such as your partner) if they made the purchase. Once you have confirmed that the transaction was unauthorised, contact your credit card issuer immediately. Credit card issuers provide 24/7 customer service to address these matters, so do not hesitate to take immediate action. Failure to do so could make you liable for the unauthorised transactions charged to your credit card.