Credit cards in Malaysia can be categorised into six broad categories. The right card for you depends largely on your spending habits and your attitude to debt.
Cashback Credit Cards
The concept of a cashback credit card is simple – for every ringgit you spend on your credit card, you receive a percentage back in cash at the end of every month or quarter. The cashback (or rebate) percentage varies from card to card, and is normally between 0.5% and 3% (although some cards offer up to 20% in rebates).
Should you get a cashback credit card?
Cashback credit cards typically have high interest rates. Most cashback cards have in place a cap (or maximum limits) on rebates. However, if you’re generally a large spender and are always able to pay off your card balance in full, a cashback credit card could help you earn money back on your spending.
Rewards credit cards
Rewards credit cards let you earn reward points when you spend. These reward points can then be used to redeem a wide range of goods and services. Typically, you earn 1 reward point for every ringgit spent on your card.
Should you get a rewards credit card?
Using a rewards credit card could be a great way of saving money, as most rewards credit card issuers do not set a cap or maximum limit on the amount of reward points you can earn. By using your credit card on your everyday purchases (and big ticket items like flight tickets), you can potentially rack up many points without much effort.
Petrol credit cards
Petrol credit cards are designed specifically for people who spend a lot of time on the road. These cards normally come with great petrol benefits, including rebates or cashback on fuel, as well as discounts at gas service stations.
Should you get a petrol credit card?
If you spend a significant amount of money on petrol each month, having a petrol credit card could potentially save you a lot of money in the long term.
Travel credit cards
Travel credit cards are reward based cards which allow you to earn points or AirMiles when used for purchases. Some travel credit cards also offer discounts on travel packages or flight tickets.
Should you get a travel credit card?
If you’re a frequent traveller, and already are a member of a frequent flyer or travel loyalty program (e.g. Enrich, Krisflyer or AirAsia), having a travel credit card may be a good way to speed up the accumulation of loyalty points.
Premium credit cards
Premium credit cards offer cardholders premium benefits like concierge service, dining and golf privileges, lounge access and more. These cards normally have a much higher minimum income requirement (some may even be invitation only cards), but they also come with a much larger credit limit.
Should you get a premium credit card?
Having a premium card will no doubt bring many premium benefits and privileges, like discounts at your favourite five-star restaurant, however, they can also cost a lot of money. Premium cards often charge annual fees in the hundreds of ringgit, although standard annual fee waiver programs may also be available.
Specialty credit cards
Specialty credit cards are the “catch-all” category. These cards are normally designed for a specific segment or target niche. For example, some specialty credit cards offer exclusive discounts to movie tickets, while others provide great health and medical benefits.
Should you get a specialty credit card?
Specialty cards are tailored to specific groups of individuals (e.g. frequent movie-goers, lady shoppers or even insurance agents). If you find that you belong to one of these niche groups, having such a card can be very rewarding.
Posted in: cards
0 comments:
Post a Comment