Deep, deep dive
Use comparison sites to find the most suitable credit card for you
Here are some sites that compare credit card information in Malaysia: https://loanstreet.com.my/, https://www.gobear.com/my, https://www.comparehero.my/, https://ringgitplus.com/en/, https://www.imoney.my/
As an example, let’s look at how you can research credit cards using a website like loanstreet.com.my:
As you can see there are many options. Comparison sites will generally allow you to select the benefits you want and will then show you the best options based on your needs.
For example, if you decide to click on the ‘Citi Cash Back Card’, you will see this:
What’s shown here are the card’s key features, but you can’t just rely on this information. You need to get into the details.
Scroll down to the bottom of the page where you’ll find the fees and charges, interest rates, and minimum requirements – very important information!
You might notice the following things:
- Income requirement: E.g. RM36,000 annual income to be eligible for the card
- Annual fee: E.g. an RM120 annual fee
- Interest rate: The interest rate applied to this card depends on how you settle your payments. For example, if you’ve settled your minimum payments on time for the last 12 months, the interest rate applied would be 15%. However, if you only paid your minimum payments on time for 10 months within the last 12-month cycle, you’ll be charged an interest of 17%
- Minimum annual repayment: 5% of your outstanding balance or RM50, whichever is higher. This means that every month you’ll have to pay at least RM50 if you don’t pay off the outstanding balance on the credit card on time
- Cash withdrawal: If you withdraw cash, you’ll have to pay both a 5% fee (or RM20, depending on which is higher) and an interest of 18% per year on the withdrawal amount
⚠ Bottom line: Don’t just look at the benefits offered by the card, but make sure you take a close look at the terms & conditions and minimum requirements attached to it as well. This stuff might sound boring, but it’s very important!