How to Choose the Best Cashback Credit Card in Malaysia
Introduction
Looking to make your everyday expenses pay you back? Choosing the best cashback credit card in Malaysia can turn your daily spending on groceries, petrol, dining, and online shopping into real financial rewards. Instead of just swiping and paying bills, you can earn money back on every ringgit spent.
This guide will help you understand how cashback credit cards work, what features matter most, and how to pick the perfect card that fits your lifestyle and spending habits in 2025.
Understanding Cashback Credit Cards in Malaysia
Cashback credit cards are among the most popular financial products in Malaysia today — and for good reason. They reward you with a percentage of your spending back in cash, helping you save money effortlessly.
According to Bank Negara Malaysia, the number of active credit cards surpassed 10 million in 2024, with cashback cards being a top choice among working Malaysians. As inflation and living costs continue to rise, many are turning to cashback credit cards to stretch their budgets and manage expenses smarter.
However, not every card suits every lifestyle. Some offer higher cashback for petrol, while others focus on online shopping or dining. Understanding these details ensures you get the maximum value from your spending.
How to Choose the Best Cashback Credit Card in Malaysia
Let’s explore the key factors you should consider before applying for a cashback card. Each element plays a crucial role in how much you can actually save.
1. Analyse Your Spending Habits
The first step to choosing the right card is knowing where your money goes. Look at your monthly expenses:
- Petrol and groceries
- Online shopping and e-wallet top-ups
- Dining and entertainment
- Utilities and insurance payments
Once you identify your top spending categories, you can pick a card that offers higher cashback in those areas.
💡 Example: If you spend mostly on petrol and groceries, a card like the HSBC Amanah MPower Platinum Credit Card-i (8% cashback on those categories) will suit you perfectly.
2. Compare Cashback Rates and Categories
Different cards offer different cashback percentages depending on spending categories.
Here’s a quick breakdown:
- High-tier cashback cards: Offer up to 10% on selected categories (e.g., dining, petrol, groceries).
- Flat-rate cashback cards: Provide 1–2% on all spending without category restrictions.
🪙 Example:
- CIMB e Credit Card: Up to 10% cashback on online spending.
- Maybank 2 Cards Premier: 5% cashback on weekends.
- Public Bank Quantum Mastercard: 5% cashback on online transactions.
Choose based on your lifestyle — frequent online shopper or everyday spender.
3. Check Minimum Spend Requirements
Many Malaysian banks require you to spend a minimum amount monthly to unlock the highest cashback tier — usually between RM500 to RM2,000.
- For light spenders: Look for cards with no minimum spend or low requirements.
- For regular or high spenders: Choose tiered cards that offer bigger rewards at higher spending levels.
📌 Tip: Spending below the required amount often means you’ll only get base cashback (0.2–0.5%), so always check the terms.
4. Review Annual Fees and Waivers
A cashback card isn’t worth it if its annual fee cancels out your savings. Some cards have lifetime waivers, while others require you to meet an annual spend threshold (e.g., RM12,000) for the waiver.
✅ Look for:
- Lifetime fee waivers (like CIMB or Hong Leong cards)
- First-year free promotions
- Low or no annual fees
💡 Always compare the total potential cashback vs. annual cost before applying.
5. Understand Cashback Caps and Payouts
Every card has a monthly cashback cap — the maximum amount you can earn per month.
For example:
- A 10% cashback card capped at RM50/month means you can earn a maximum of RM50 even if you spend RM2,000.
If you’re a big spender, look for cards with higher or no cashback limits.
Also, note when cashback is credited — some banks credit monthly, others quarterly. Regular payouts give you faster rewards.
6. Consider Additional Perks
Beyond cashback, many cards include added benefits like:
- Travel insurance coverage
- Airport lounge access
- Dining and retail discounts
- E-wallet top-up rewards
These perks can add significant value — especially if you travel often or enjoy premium privileges.
Real-Life Example: Turning Everyday Spending into Savings
Meet Amira, a 30-year-old professional from Kuala Lumpur. Her monthly expenses:
- Groceries: RM800
- Petrol: RM600
- Online shopping & food delivery: RM1,000
- Utilities & dining: RM600
By choosing the HSBC Amanah MPower Platinum Credit Card-i, she earns:
- 8% cashback on groceries and petrol = RM112
- 0.2% on other categories = RM4
➡️ Total cashback: RM116/month, or RM1,392/year — just from using her credit card wisely!
Expert Tips: Do’s and Don’ts When Choosing Cashback Cards
✅ Do’s
- Match your card to your top spending categories.
- Track monthly spending to meet cashback thresholds.
- Redeem cashback regularly.
- Take advantage of seasonal promotions and bonus cashback days.
❌ Don’ts
- Don’t overspend just to earn cashback — interest fees will negate savings.
- Avoid cards with confusing tiers if you prefer simplicity.
- Don’t ignore annual fees and fine print.
- Never carry a balance — always pay in full to avoid interest charges.
FAQs: Cashback Credit Cards in Malaysia
1. What is a cashback credit card and how does it work?
A cashback credit card gives you a percentage of your spending back in cash, credited to your account. For example, 5% cashback on RM1,000 means you earn RM50 back.
2. Which is better — cashback or rewards points?
Cashback offers instant, tangible savings, while points require redemption. Most Malaysians prefer cashback for its simplicity and immediate benefit.
3. Are there spending limits on cashback?
Yes. Most banks cap cashback per month or per category. Always check your card’s cashback cap before applying.
4. Can I hold more than one cashback credit card?
Yes — some users combine cards to maximize cashback on different categories (e.g., petrol on one card, groceries on another). Just ensure you manage payments responsibly.
5. Will using cashback cards affect my credit score?
Only if you miss payments or exceed your limit. Paying bills on time actually improves your credit score over time.
Final Thoughts: Spend Smart, Earn Smarter
Choosing the best cashback credit card in Malaysia is about aligning your financial habits with the right card benefits. By understanding your spending, comparing cashback rates, and managing fees, you can turn everyday expenses into consistent savings.
Whether you’re a frequent online shopper, commuter, or foodie, there’s a perfect cashback card out there waiting to reward you. Review your options, read the fine print, and start making your money work harder for you today.
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