Anyone who uses a credit card will be aware that it is basically a type of spending which goes into the future. When you use your credit card, you are spending an amount which you haven’t yet have. So in order for you to do that, the banks will charge you interest.
You can however choose to find a bank that offers you the Cashback facility when you use their credit cards. This is basically an option that gives you rebates when you are using the card. The rebates usually come in the form of cash and that would be motivational enough to keep you as their customer.
In most cases, credit card companies offer free gifts and adopt a point system but if you are able to get cash back for your expenditure, it would be an added bonus and in most cases a lot more attractive than any other options.
For example, if a credit card offers you a 5% cash back facility; you are actually enjoying a sort of discount for the particular purchase. This means that if you are paying RM500 for a gadget, the discount is actually 5% which means you are only paying RM475.
As with any other financial schemes, there will always be a catch. The cashback facility will be extremely effective and useful for you if you are able to pay back the full amount each month. This means that if you rake in RM500 in credit card expenditure and you pay off the RM500 at the end of the month, you are actually enjoying the 5% savings. But if you can only afford that minimum payment, you will end up paying back more than the 5% you earn in the first place because there will be interest charged on the outstanding amount owed.