Most working adult Malaysians have at least a credit card in their wallet, and as they get older, the more credit cards they own. However, no credit card is ever alike as they’re with different benefits and features, and each serves a different purpose depending on your lifestyle. Find out the five most common types of credit cards available in Malaysia, and how you can choose the right one:
- Special Offer Credit Card As the name suggests, this type of credit card mainly offers various exclusive deals for all of its cardholders. The deals are often with specific merchants, and the deals may range from movie ticket discounts to complimentary coffee. This card is mostly suitable for hobbyists with particular taste and interests or young working professionals who have just entered the working world and are trying to save on fun and entertainment. However, watch out for hidden charges.
- Balance Transfer Credit Card With this card, you can avoid having to pay a huge amount of interest rate charges by transferring the balance accumulated from your other credit card to another of your credit card issued by different banks. Some Malaysian cardholders with a pile of credit card debt would opt for this card to avoid incurring charges. While this card may serve as a short-term solution for your credit card debt, be wary of the terms and conditions. Also, certain banks require you to pay interest fees of 4% up-front.
- Low-Interest Rate Credit Card In Malaysia, this type of credit card has a minimum interest rate of 8.88% p.a. (the lowest on the market). If you’re a big spender and love to shop all the time, this card could be your lifesaver. Even if you’ve missed making your monthly payment, the interest rate charges won’t cause you too much damage. That said, try not to purposely dodge your monthly interest rate and pay the minimum payment to stay on top of your finances.
- Reward Points Credit Card This is another card that benefits shopaholics the most. Every time you swipe your reward points credit card, you’ll receive reward points that will allow you to redeem amazing goodies when they’re accumulated to a certain amount. How much Ringgit you spend will determine how many points you’ll earn. You can use your accumulated points to redeem things such as airline miles, shopping vouchers, household items, petrol, and gadgets. Most credit card points will expire within three years, so it’s best if you redeem the items as soon as possible.
- Cashback Credit Card Similar to reward points, this card allows you to earn a percentage of cash for every purchase made with the credit card. A certain amount of rebate will be given to you every end of the month. This type of card would be a great choice for those who’d like to save more when they shop. However, always read the fine print to avoid hidden or extra charges.
As a rule of thumb, choose a credit card that would benefit you the most based on your lifestyle and spending habits, and avoid the ones with high interests if you’re not a high-income earner. If you’re thinking of getting one, get a Platinum credit card in Malaysia. There are a number of perks to owning a Platinum one as opposed to silver or gold, including air travel credits, airport lounge access, zero foreign transaction fee, sign-up bonus, and membership rewards points.