Best Cashback Credit Cards

The rising popularity of cash back credit cards in Malaysia is no surprise—they offer an easy way to save money on everyday expenses. With so many options, however, finding the best cash back credit card can be tricky. In this article, we’ll break down everything you need to know, from the types of cash back cards available in Malaysia to the benefits, drawbacks, and tips for maximizing rewards.

What is a Cash Back Credit Card?

Cash back credit cards reward you with a percentage of your spending returned to you as cash. Depending on the card, cash back rates can vary from as low as 0.5% to as high as 10% or more on certain categories, such as dining, groceries, or petrol. These rewards can add up quickly, making it a great choice for those who frequently use their credit card for daily purchases.

Benefits of Cash Back Credit Cards in Malaysia

Cash back credit cards offer multiple benefits that can help Malaysians save money. Some of the key advantages include:

• Immediate Rewards: Cash back rewards are typically credited monthly or quarterly, making it easy to see and use your rewards sooner.
• Flexible Spending: Many cards provide high cash back rates on specific categories, allowing you to tailor your spending to maximize benefits.
• Simplicity: Cash back is straightforward—no points to redeem or expiration dates to worry about.
• Wide Acceptance: Many Malaysian credit cards are part of global networks, making it easy to use them for local and international purchases.

• Key Factors to Consider When Choosing a Cash Back Credit Card

  Choosing the right cash back credit card can be overwhelming. Here are some critical factors to keep in mind:

  1. Cash Back Rate: Look for cards offering high rates on categories where you spend the most, such as groceries, petrol, or online shopping.
  2. Minimum Spend Requirements: Many cards require a minimum monthly spend to qualify for the highest cash back rate.
  3. Annual Fee: Some cards charge annual fees, but these can sometimes be waived if you meet certain spending thresholds.
  4. Cap on Cash Back: Many cards have a monthly cap on cash back earnings, so ensure it aligns with your spending habits.
  5. Payment Flexibility: Check if the card allows flexible repayment terms to avoid interest charges on any outstanding balance.

• Types of Cash Back Credit Cards Available in Malaysia

  1. General Cash Back Credit Cards

  General cash back cards provide a flat-rate cash back on all purchases, regardless of the category. These are great for those with varied spending patterns who want rewards without focusing on specific spending categories.

  2. Category-Based Cash Back Credit Cards

  Category-based cards offer higher cash back percentages on specific categories, such as dining, groceries, petrol, or online shopping. These cards are ideal for people who tend to spend more on certain types of purchases.

  3. Tiered Cash Back Credit Cards

  Tiered cards provide increasing cash back rates based on your monthly spending amount. For example, spending RM1,000 might give a cash back rate of 1%, while spending RM2,000 could raise it to 2%.

  4. Bank-Specific and Co-Branded Cash Back Credit Cards

  Some banks partner with specific merchants to offer higher cash back rates at those locations. These cards can offer great benefits if you frequently shop at the partner merchants.

• Top Cash Back Credit Cards in Malaysia

  1. Maybank 2 Gold Cards

  • Best For: Overall rewards with cash back and air miles
  • Cash Back Rate: 5% on weekends for dining, groceries, and petrol
  • Annual Fee: RM0
  • Monthly Cap: RM50

  The Maybank 2 Gold Cards are well-rounded, with both cash back and the option to earn TreatPoints. Its fee waiver and decent cash back on weekends make it attractive to most users.

  2. HSBC Amanah MPower Platinum Credit Card-i

  • Best For: Petrol and groceries
  • Cash Back Rate: Up to 8% on petrol and groceries with a minimum monthly spend
  • Annual Fee: RM240 (waived if minimum spend is met)
  • Monthly Cap: RM50

  The HSBC Amanah MPower Platinum is a Shariah-compliant card that’s perfect for frequent petrol and grocery spenders. The high cash back rate helps offset daily expenses effectively.

  3. Public Bank Quantum Visa Credit Card

  • Best For: Entertainment and online spending
  • Cash Back Rate: 5% on dining, groceries, and online spending
  • Annual Fee: RM0
  • Monthly Cap: RM30 for each category

  The Public Bank Quantum Visa Card stands out for entertainment and online purchases, making it ideal for tech-savvy users or those who enjoy going out.

  4. Standard Chartered JustOne Platinum Mastercard

  • Best For: High monthly spenders
  • Cash Back Rate: Up to 15% on petrol, groceries, and online purchases
  • Annual Fee: RM250 (waived if minimum spend is met)
  • Monthly Cap: RM60

  With one of the highest cash back percentages in Malaysia, the Standard Chartered JustOne Platinum is suited for those with significant monthly expenses, especially in major cash back categories.

• How to Maximize Cash Back Rewards in Malaysia

  Here are some tips for getting the most out of your cash back credit card:

  1. Match Card Categories to Spending Habits: Choose a card that aligns with your most common expenses, like dining or petrol.
  2. Monitor Spending Requirements: Make sure you meet any minimum spend requirements to unlock higher cash back rates.
  3. Utilize Multiple Cards: Combining two or more cash back cards with complementary categories can help maximize your rewards.
  4. Time Purchases: Some cards offer higher cash back rates on weekends or at specific times. Timing your purchases accordingly can boost rewards.
  5. Review Monthly Limits: Be mindful of monthly caps to avoid overestimating the rewards you’ll receive.

• Pros and Cons of Using Cash Back Credit Cards in Malaysia

  Pros

  • Earning Potential: Earn rewards on everyday purchases, helping offset routine costs.
  • Flexible Redemption: Redeem cash back easily as a statement credit or sometimes as direct cash deposits.
  • No Redemption Complexity: Cash back rewards avoid the complexity of points or miles, which may expire or come with restrictions.

  Cons

  • Caps and Limits: Many cards have monthly caps, limiting the maximum rewards you can earn.
  • High Interest Rates: Paying only the minimum balance each month can lead to high interest charges, which will negate the benefits of cash back rewards.
  • Spending Requirements: Some cards require a high minimum spend to unlock the best cash back rate.

• Important Tips for Applying for a Cash Back Credit Card in Malaysia

  • Check Credit Score: A good credit score increases your chances of approval and may help secure a better interest rate.
  • Compare Annual Fees: Some cards waive the annual fee if you meet spending requirements, so choose a card with favorable terms for your needs.
  • Read the Fine Print: Be sure to review the terms and conditions, as some cash back benefits may be limited to specific locations or spending patterns.

• What is the best cash back credit card in Malaysia?

  The best cash back credit card depends on your spending habits. Cards like the Maybank 2 Gold Cards offer strong benefits for dining, groceries, and petrol, but it’s essential to choose based on your unique spending profile.

• Are cash back credit cards worth it in Malaysia?

  Yes, if used responsibly, cash back credit cards can offer meaningful rewards on everyday purchases. However, remember to pay off your balance monthly to avoid interest charges that could offset your rewards.

• Do cash back credit cards have an annual fee?

  Some do, while others waive the annual fee if you meet a certain spending requirement. Always check the terms of each card to understand any potential fees.

• Can I have multiple cash back credit cards?

  Yes, many Malaysians use multiple credit cards to maximize their rewards. By selecting cards with complementary categories, you can enjoy higher cash back in more spending areas.

• How do I apply for a cash back credit card in Malaysia?

  You can apply directly through your preferred bank’s website or visit a branch. Alternatively, another convenient way is applying through our iMoney online application form. Be prepared to submit financial documents, including proof of income, to support your application.

• Final Thoughts

  Choosing the right cash back credit card in Malaysia can lead to substantial savings, especially for individuals who strategically align their spending with card benefits. Whether you’re a foodie, a frequent traveler, or someone looking to save on petrol and groceries, there’s likely a cash back credit card in Malaysia suited to your lifestyle.