As we close another fantastic year and prepare to usher in 2015, it’s time to evaluate which credit card did the best this year. Which are the best credit cards in Malaysia this year? This year’s preeminent plastics have taken the credit card scene by the storm with fantastic offers — in terms of cash back, merchants, flexibilities and rewards!
There are hundreds of credit card in Malaysia clamouring for your attention — and if you don’t do your due diligence, you may just end up with a bad piece of plastic that doesn’t do you any good.
We’ve done the home work for you and shortlisted the best credit card for these categories:
Best cash back credit card
If you like a little help with your credit card bills with rebates from your card issuer, this is the card you should go for.
HSBC Amanah MPower Visa Credit Card-i
Interest rate: 15%
Annual fee: RM90* Free with 12 swipes a year
Cash back:
8% on weekends for local petrol, dining and groceries for monthly spending of RM2,001 and above
5% on weekends for local petrol, dining and groceries for monthly spending of RM2,000 and below
Why it’s the winner:
It offers one of the highest cash back rates, without having too spend too much on your credit card monthly. The various categories for high cash back makes this card suitable for almost every one — and that much easier to save!
Drawback: Though it has a high cash back rate, it also comes with a low cash back limit of RM50. However, by making it easy to earn the maximum cash back every month means you don’t have to worry about the government tax on your plastic.
Best reward credit card
Want to be rewarded for every spending, get the card that gives you more reward points for every RM1 spent.
Citibank Rewards Platinum Card
Interest rate: 8.88%
Annual fee: RM100 per annum per Rewards Category
Rewards:
5x Citi Rewards points from selected Rewards categories
Categories that are not chosen will continue to enjoy 1X Citi Rewards points except for petrol transactions
The categories are shopping, travel, driving, home, entertainment and others.
Why it’s the winner:
This is one of those cards that is evergreen. No matter what changes you see in your life, this card will see you through it. With six categories to choose from, this card is made for everyone.
Drawback:
You will need a minimum of two selected categories, which means you will have to pay at least RM200 on annual fee for the two categories. That can be quite steep if you don’t maximise it just right.
Best travel credit card
The best travel credit card is one that allows you to accumulate air miles even when you are not travelling. And we’ve found just the right card for you.
Standard Chartered WorldMiles Card
Interest rate: 15%
Annual fee: RM180 (Free for the first year)
Airmiles:
1 WorldMiles Point for every RM3 spent locally
1 WorldMiles Point for every RM2 spent overseas
Why it’s the winner:
The wide variety of frequent flyer programmes you can convert your WorldMiles to make this our favourite travel card this year. You don’t even have to spend a fortune to redeem a flight. With three years expiry on your points, you can take your own sweet time to accumulate your air miles and finally get the free vacation you deserve.
Drawback:
It offers a chance for non-frequent travellers to earn air miles on their usual spending, but the entry point is quite steep for most with minimum annual income at RM100,000. Matched with the high annual fee of RM180, this is definitely not an entry level card, but if you do qualify for it, it is sure to fulfill your travelling needs.
Best balance transfer credit card
If a hefty credit card balance is weighing you down, consider a good 0% balance transfer deal that will give you some breathing space to get your finances back in order.
Interest rate: 8.88%
Annual fee: Free
Balance transfer: 0% for 12 months with one-time upfront fee of 3% of transferred amount, with minimum transfer of RM1,000.
Why it’s the winner:
The combo of a low balance-transfer fee with a long 0% interest window make this a great card for folks trying to pay off a debt. Plus, it also gives you the best of both worlds — with 5% on weekend dining with Maybankard 2 American Express and 5 TreatsPoints for every RM1 spent locally or abroad using the Maybankard 2 American Express and 1 TreatsPoints for every RM1 spent locally or abroad using the Maybankard 2 MasterCard. With a low interest rate, low rate for balance transfer, high reward points and cash back rate, what’s not to like about the Maybank 2 Cards?
Drawback:
We are really nitpicking here. The best cash back rate and reward points are only available on the American Express, which have fewer participating merchants compared to MasterCard and Visa. With low cash back and reward points given, the MasterCard doesn’t do much and can probably be stashed at the bottom of your purse.
Find out how much you can save with balance transfer.
Best petrol credit card
With the volatile petrol prices without subsidy, Malaysians really need to look for smart ways to cut down on their fuel expenses. This card will reward you for every litre of petrol you pump!
Interest rate: 15%
Annual fee: RM160
Cash back:
10% cash back every day for spending on two categories from the nine categories available plus the mobile category, which is a bonus category for every card holder.
Why it’s the winner:
If you choose the Petrol category as one of your selected categories, you can enjoy 10% cash back, regardless of the petrol brand or the day you fuel up. With a high cash back limit of RM100, you will be able to save up to RM1,200 a year! All you need to do is to make 10 transactions worth RM50 each a month. With other categories available, you don’t even need to have another card to take care of your other expenses. This plastic is the only one you need!
Drawback:
The RM160 annual fee may stop you on your track to getting your petrol saving. But even with the RM160 a year, you are still saving up to RM1,040 a year! That’s not such a bad deal. However, don’t be too quick to change your spending category as you will be charged an additional RM10 for each change.
With all that has changed over the past year—and several years—it’s probably worth re-evaluating your cards. From hundreds of cards to choose from, iMoney has made it much easier for you to make the wise decision when it comes to your plastic.
We’ve read the fine print in every cardholder agreement, combed through credit card statements, surveyed as many credit card holders as we possibly can — just to better understand how they work and what type of spenders they benefit.
Remember, a credit card, if used wisely can open doors to thousands of rewards and savings. If you always pay off your balance in full, you can definitely go for a rewards cards with all the frills. However, if you don’t, stick to a low-rate card for now, or you’ll end up paying for someone else’s rewards with your interest payments.
Choose the right card, and you may see yourself saving more in 2015!
* Article updated on July 31, 2015 to reflect the latest 5% Weekend Dining Cash Back term, effective August 1, 2015.
The above credit cards don’t fit your bill? Take this quiz to find the perfect credit card that will save you some bucks!
