Top 6 Islamic Credit Cards to Compare for 2018
Finding the Right Islamic Credit Card
As a Muslim, you may be interested in a credit card and other financial products that adhere to the laws of your Islamic faith.
The good news is that there are plenty of cards that cater to your religious beliefs. These cards don’t charge interests, do offer Takaful coverage and are shariah-compliant.
What’s best, you’ll find that Islamic credit cards are still capable of offering incredible cashbacks, rewards, freebies and discounts that provide better value for spending.
Can anyone get an Islamic credit card?
Whether you are Muslim or not, you can apply for an Islamic credit card. Still, sign-up requirements are similar to that of a conventional credit card.
You will need to earn within the card’s minimum annual income requirement, have good credit as well as fulfil the employment requirements, among others.
How are Islamic credit cards different from conventional credit cards?
As mentioned, Islamic credit cards are shariah-compliant and conventional credit cards are not.
Being shariah-compliant, Islamic credit cards shall not be used for or be part of practices that are prohibited by Islamic law.
For one, usury or riba, commonly referred to as ‘interest charges’, is not allowed. Instead, a profit rate will be applied on outstanding balances for Islamic credit cards.
Also, the card does not come with compounding interest charges for late payments – it is often capped after a certain amount.
So if all this sounds good to you, let’s move on and look at the best Islamic credit cards in Malaysia right now!
Top 6 Islamic Credit Cards in Malaysia You Should be Comparing
We’ve narrowed down our choices to six fantastic Islamic credit cards in Malaysia in terms of promos, rates, rewards, and fees.
One of the more popular Islamic credit cards around town, the HSBC Amanah MPower Platinum-i offers numerous benefits that fall under a wide gamut of categories such as lifestyle, petrol, and even a handy balance transfer rate.
Receive up to 2% cashback when you spend a total of RM2,000 and above at Shell, Petronas and Caltex stations (with a monthly cap of RM50). That's a tidy little sum saved when you plan your next road trip with your pals!
Another RM50 can be yours if you spend up to RM2,000 a month on your groceries at selected supermarkets such as Giant, Tesco, AEON Big and Mydin.
You'll also be able to enjoy amazing savings with HSBC Amanah Balance Transfer plans if you're a new credit card holder.
Frequent travellers might appreciate the travel Takaful coverage up to RM1 million that’s offered with this card.
This is a good deal when considering the minimum income requirement is just RM24,000 annually. Basic cards aren’t typically afforded privileges like this.
Also, if you don’t like the idea of paying for annual fees, you are going to love this card with annual fee waived for life!
Now if you are curious about which Islamic banking concepts apply to this card, know that as with most cards in Malaysia, this one follows the ujrah principle.
It reasons that charges imposed, are meant to account for services rendered, unlike conventional ideas behind banking interest rates (e.g. time value of money, etc.).
The profit rate for this card is average, from 15% to 18% per annum.
3. BSN Gold-i
If you work in the government sector, you’ll get a chance to enjoy lower-than-average rates with this card.
The finance charge for eligible card applicants from the government sector is from 11% to 17.5% per annum, one of the lowest currently offered.
Even private sector employees can enjoy lower rates than the average (if eligible), with offers starting from as low as 13.5% to 17.5% per annum.
The low rates are dependent on your promptness in making payments i.e. before or on the due date.
This card is also free of annual fees for life, but do note that the minimum income requirement is slightly higher at RM36,000 per annum.
What about card benefits and freebies? For starters, cardholders will receive automatic travel and inconvenience insurance coverage up to RM50,000 when charging travel tickets to the card.
Cardholders will also get a complimentary BSN Zing PLUSMiles Card, be able to redeem gifts from the BSN Happy Rewards Programme as well as enjoy special dining and travel discounts from the Happy Privilege Programme.
Like the other two cards on this list, the annual fee is for this card is also waived for life!
But what is truly unique about this card is the charity aspect; Maybank will donate 0.1% of spending to charity.
It is certainly a noble benefit that both Muslims and non-Muslims alike can appreciate.
The charity organisations involved are Mercy Malaysia, Islamic Relief Malaysia and Islamic Aid Malaysia.
Another cool benefit is that you can win an Umrah trip for two when you spend a minimum of RM200 in a single receipt, paid with your credit card.
Non-Muslims can win a holiday package instead.
But that’s not all; this card also provides 5% cashback on Fridays and Saturdays for petrol and groceries.
In terms of rates, this card is average, charging 15% to 18% per annum. However, unlike the two cards listed above, no travel insurance is offered at present.
Malaysian citizens and expatriates earning an annual income of RM30,000 and RM60,000, respectively, may apply.
This is a good starter card for those just joining the workforce thanks to its low minimum income requirement of RM24,000.
Cardholders may also enjoy the chance to earn reward points every time they spend (1 AmBonus Point = RM1 spent).
Redemption gifts included branded cameras, appliances, high-end luggage, toys, perfume, luggage, cash vouchers and air miles.
Moreover, there is no annual fee with this card as it is waived for life, with no conditions attached.
In fact, even the first three supplementary cards will have its annual fee waived; only the fourth will be charged RM75 per annum.
If you’re looking for decent cashback (up to 5%, capped) from daily spending on petrol, groceries, utilities and online shopping, this card might pique your interests.
For all other spending, get up to 0.2% cashback without cap.
This card also awards cardholders with Takaful travel insurance coverage of up to RM100,000 for you and your family (spouse and children).
The only thing to take note is that this card does impose an annual fee of RM74.20 (including GST) per annum after the first year, unless you swipe a minimum of 12 times per year.
There you have the top five Islamic credit cards available now! Still need more card options? No problem!
Just head to our comparison page to research a whole range of Islamic credit cards on offer and find one to suit your needs!