Banks have long since evolved from offering plain vanilla Credit Cards to specialized credit cards. These specialized credit cards, also known as credit card categories, cater to a specific set of cardholder requirements and needs by providing rewards and benefits tailored to those requirements. Here, we will try and explore the main types of credit cards available in Malaysia:

Cashback credit cards – These cards provide rewards in the form of cash rebates. A small percentage of the card spend is returned back either as cash, cheque or as a credit to the credit card account.

Air Miles credit cards – These cards enable you to convert card spends (on all or select categories) into Air Miles or Reward Points that can then be converted into Air Miles or redeemed against a range of rewards. The earned Air Miles can then be used on the airlines affiliated with the Credit Card to book tickets, get upgrades etc.

Rewards credit cards – These cards have enhanced Rewards Points programs on certain categories of spends or when shopping at select merchant outlets. These Rewards Points can then be redeemed against a range of gifts and benefits.

Petrol credit cards – Some consider them a boon for those not eligible for the Bantuan Rakyat 1Malaysia (BR1M)! Petrol credit cards are of two-types: multi-branded cards which provide discounts on petrol and related spends across multiple petrol stations and co-branded petrol cards which provide discounts only when used at the petrol outlets of the affiliated brand.

Business credit cards – Business credit cards are a great way for businesses including Small and Medium Enterprises (SMEs) to access credit for operational expenses, shore-up cash flows and help make purchases. Not just businesses even professional practitioners like doctors, dentists, lawyers and accountants can apply for and use these cards.

They help keep professional and personal expenses separate, provide a range of reporting and control features and offer specific rewards like business and supply discounts with vendors with whom the business regularly deals, extended warranties and business-related promotions.

Low APR credit cards – Every time you “revolve” the balance on your credit card, you are subject to high interest and other fees. Low interest credit cards are meant for those who are unable to fully repay the balance on their cards; they charge a lower amount on your balances in comparison to other cards.

Dining credit cards – These cards provide a range of deals and offers with a variety of restaurants and provide extra rewards in the form of enhanced rewards points, cashback or discounts whenever you pay with your Dining Credit Card.

Islamic credit cards – These cards operate on Shariah principles. These cards are generally based on the Shariah principles of Tawarruq (commodity contracts), Bai Al’ Inah (sale with immediate repurchase) or Ujrah (payment in exchange for services, benefits and privileges). Islamic cards generally do not levy compounding finance charges. These cards cannot be used for Shariah-prohibited (Haram) transactions like gambling, liquor etc.

Online shopping credit cards, student credit cards etc are some of the newly emerging credit card types.