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Malaysia Best Cash Back Credit Cards 2018 – Lesson No.12
Before you read the contents of this review, it is imperative you start from the very beginning, i.e. take My FREE Credit Card Tutorial 2018 followed by Lesson No.1 to No.11 listed in my CASH BACK Page.
If you fail/refuse to follow the above recommendation, you may be blur as to what I am about to present below.
Hong Leong Bank WISE Cash Back Visa Review
Hong Leong Bank advertised that this card earns you 10% cash back. Well, it was true years ago but it is no longer the case since 2016.
The Hong Leong Bank WISE Visa Cash Back Credit Card is not for everyone but for those who can meticulously keep track of every sen they spend with a credit card. The benefit of the HLB Wise is that the cash back is capped at RM100 per month versus most other credit cards where it is capped at RM5- per month.
You are only entitled to the 10% cash back from 2 categories plus your telco bills. If you have been maxing out the cash back cap of your other cash back credit cards (as mentioned in Lessons No.1 to No.10) and need another credit card for spending of minimum RM2K per month at the merchants listed below, then the HLB Wise may be a good option:
If you refer to the above merchant list, it is interesting to note that most of them accept American Express, which means you can get guaranteed 5% cash back with any type of transactions including Government on weekends with the wonderful Maybank 2 Gold/Platinum Cards mentioned in My Credit Card Tutorial CC 101 PLUS another 1% cash back equivalent with 5X Treats Points when you redeem for cash vouchers.
And I bet the wiser people (plus those who have read my previous articles on the HLB WISE) will go for the Gold (Annual Fee RM265 for those approved after 1 October 2016) instead of the Platinum (Annual Fee RM318); because the Platinum’s annual fee is higher and you don’t get any better cash back compared to the Gold! I guess HLB knows that many people “shiok sendiri” when they get to brag that they are holding a Platinum Card; therefore, they will stupidly and willingly pay the higher annual fee, hahaha.
Effective 1st October 2016, you need to spend minimum RM2K with the Hong Leong Bank WISE Platinum and Gold Visa credit card to earn Cash Back. That’s not the only bad news, they also increased the WISE Gold annual fee from RM169.90 to RM265!!!
With the Cash Back capped at RM100 per month and taking into consideration the annual fee of RM265 (for those whose Wise Gold Visa is approved after 1 Oct 2016), the effective cash back you can earn with the HLB Wise is only 3.89%!!!
Assuming you spend RM2K per month and earn the max cash back of RM100.
Annual spending = RM24,000
Annual Cash Back = RM1,200
Effective Annual Cash Back = Annual Cash Back – Annual Fee = RM935
Therefore, Effective Cash Back = RM935/RM24,000 x 100% = 3.89%
From the above, you can see for yourself that you will never earn 10% cash back from the HLB Wise Visa but just below 4% cash back. However, 3.89% is still not too bad, that is if you spend exactly RM2K and you need another credit card because you have maxed out your other cash back credit card caps.
Another Personal Financial Tutorial by GenX