Chase miles, earn cashback or hoard reward points? With a sea of credit cards out there, how do you compare and pick the best one for your choice of lifestyle?
When it comes to credits cards, your spending habits and personal preferences take the front seat. Whether you enjoy travelling in style, or if you simply want cash in your pocket, there’s a card for you. Here’s a look at the 3 main types of credit cards and the promotions available.
Cashback
Miles
Rewards
Credit cards for each spending type
Type of credit card
Pros
Cons
Cashback
Get a percentage of your spending back in the form of cash or rebates. It is credited back into your credit card account to offset your next purchase.
To earn higher cashback rates, some credit cards require you to spend a minimum amount each month. There could also be a cap to the amount of cashback you can earn.
Miles
Earn miles for every dollar you spend. Whether in economy class or first class, these miles can be used to redeem your next flight out of Singapore.
It takes time to accumulate sufficient miles to a destination outside of Southeast Asia, unless you spend big. Your miles might also expire before you have the chance to use them.
Rewards
Chalk up rewards points as you spend. Rewards cards offer flexibility, allowing you to redeem your points for a reward of your choice. You can also use these reward points to redeem miles or cashback.
Not all rewards catalogues offer a wide variety of gifts. The rewards you see on the catalogue today might not be the same rewards available when you finally redeem your points.
Cashback credit cards
A cashback card is the most straightforward when it comes to earning rewards for your credit card spend. With a cashback card, you get rewarded with cash credited into your credit card. These cash credits can be used to help you offset your next purchase.
Who should get cashback cards
If you think cash is king. You are rewarded with cash in your credit card that can be used immediately, on your next purchase, whatever that might be.
If you don’t spend much. You still enjoy cashback regardless of the size of your spending, and the cashback cap doesn’t bother you.
If you prefer immediate gratification. Your cashback is credited into your credit card each month. On the other hand, miles and rewards cards require months or even years of miles/reward points accumulation before you can redeem something substantial.
Pros
Cons
Get back a percentage of your spending in the form of cash back
Minimum monthly spend required
High cashback rate for specific categories (e.g. grocery, dining, petrol, shopping etc.)
Cap to the maximum amount you can earn in cashback each month
Receive your cashback every month
Not all categories earn high cashback rates
No redemption process required
What to consider when choosing a cashback card:
Cashback rate: How much cashback will you be earning?
Categories with higher cashback rate: Which category spend will give you more cashback?
Minimum spend: How much will you need to spend each month to earn this cashback?
Cashback cap: What’s the maximum amount you can earn in cashback for each category every month?
What cashback credit cards should you get?
Check out the cashback cards listed below or read this article to find the best cashback cards in Singapore.
Perks
Credit card
Alternative option
No minimum spend and no cap
Citi Cash Back+1.6 per cent cashback on all spending 
Standard Chartered Unlimited1.5per cent cashback on all spending
Highest cashback rates
CIMB Visa Signature10 per cent cashback on online spending, groceries, beauty and wellness, pet shops etc.
6per cent cashback for online spending, contactless mobile payments and foreign currency spending made in-store
Higher cashback rates for spending in specific categories
Citi Cash Back 8 per cent cashback on grocery and petrol 6 per cent cashback on dining
POSB Everyday 8 per cent cashback on online food delivery from Foodpanda and Deliveroo exclusively with min. spend required, 5 per cent cashback on groceries, 3 per cent cashback on dining and at Watsons, 1 per cent cash rebate on electricity bills and up to 20.1 per cent fuel savings at SPC
Cashback credit card promotions available
Here are the ongoing promotions for some of the cards listed above and more!
POSB Everyday Card
DBS Promotion: Enjoy 100 per cent cashback on dining and groceries (up to $268) when you apply and spend on one of these participating DBS/POSB credit cards.
Simply enter promo code FLASHCNY in your application to qualify. Promotion is valid till Feb 9, 2021. You’ll have to be a new DBS/POSB credit cardholder and make your cashback-eligible spend within 30 days of card approval to be eligible. Terms and conditions apply.
If you’re not a new DBS/POSB credit cardmember, consider these promotions instead.
Citibank Cash Back+ or Citibank Cash Back card
Standard Chartered Unlimited card
To be eligible for this promotion, you’ll have to be a new Standard Chartered Bank cardholder and activate your new card within the first 30 days of card approval.
Also, a min. spend of $200 is required. If you already have a Standard Chartered credit card, you’ll be rewarded with $30 cash via PayNow when you sign up. Promotion is valid till Feb 5, 2021, T&Cs apply.
Miles credit cards
A miles credit card rewards you with miles for every dollar spent. These accumulated miles can be used to redeem flights in the future, be it on economy class, business class or first class. Naturally, the further the destination, the more miles required.
Who should get a miles card?
If you love to travel. There’s nothing like redeeming your hard-earned miles for a ‘free’ flight. If you enjoy travelling, chasing miles can be a very rewarding journey.
If you want to experience travelling in luxury. Can’t bear to pay the premium for a non-economy seat? A miles card could be your chance to earn yourself a first class ticket on a carrier like Singapore Airlines. Some miles credit cards also come with free lounge access.
If you have big-ticket purchases coming up. Miles require spending in order to accumulate sufficient miles. A big-ticket purchase is a chance for you to supercharge your miles journey, especially with the bonus miles promotions some credit cards offer.
Pros
Cons
Both local and overseas spending earn you miles, which can be redeemed for a flight in the future
Takes time to accumulate sufficient points to redeem a flight
No minimum spend required
Not all banks partner a wide range of frequent flyer programmes
No cap to miles you can earn
There is an expiry date to miles earned
Additional travel benefits such as complimentary airport transfer, lounge access, travel insurance and more
What to consider when choosing a miles card:
Miles earn rate / miles per dollar (mpd): How many miles will you earn per dollar spent?
Categories with higher miles earn rate: Which categories will give you more miles for your spending?
Annual fee: How much is the annual fee and should you pay the annual fee?
Airlines partners: Which frequent flyer programmes does the bank have on board? For example, Krisflyer miles can only be used for carriers under Singapore Airlines.
Which miles credit card should you get?
Check out the miles cards listed below or read this article to find the best miles cards in Singapore or check out these credit cards for first-time miles chasers.
Perks
Credit card
Alternative option
Highest miles per dollar for all spend
UOB PRVI MilesEarn 1.4 mpd for every $1 spent locally
HSBC RevolutionEarn up to 4mpd on online and contactless spending with no annual credit card fee
Welcome/bonus miles
Citi PremierMilesEarn 45,000 miles when you spend $9,000 within 3 months from card approval.
American Express Singapore Airlines KrisflyerEasy 5,000 bonus miles on first credit card transaction and another 5,000 KrisFlyer miles with a min. spend of $3,000 in your first three months.Read full review here.
Most airline partners(Citibank offers a total of 11 different frequent flyer transfer partners)Citi PremierMiles Earn 1.2 Citi Miles per $1 local spend
Citi Rewards card Earn 10X Rewards points (4mpd) on all your online purchases
Understandably, with the current Covid-19 situation, it is difficult to determine when’s the next time you can travel. Here’s how we think Covid-19 could change your miles strategy.
Miles credit card promotions available
Here are the ongoing promotions for some of the cards listed above and more!
Citi PremierMiles or Citi Rewards card
American Express Singapore Airlines KrisFlyer Credit Card
SingSaver’s Exclusive Offer: Receive a set of Apple AirPods with Charging Case (worth $239) when you make a minimum spend of $500 within the first month of card approval. Valid till Feb 21, 2021. T&Cs apply. Apply now!
UOB PRVI card
Rewards credit cards
A rewards credit card gives you reward points for your credit card spend. These reward points can be used to redeem a gift of your choice from the rewards catalogue. You’ll find that they usually revolve around cash vouchers for department stores, supermarkets, petrol stations, restaurants and more.
Many rewards cards also double as miles cards, allowing you to convert your points into miles from one of the bank’s frequent flyer programmes. This makes rewards cards a versatile tool for you shuttle between miles and rewards depending on your whims.
ALSO READ: Best credit card promotions 2021 – Free money, CapitaLand vouchers & more
Who should get rewards cards
If you prefer gifts over cash. You can use your points to directly redeem a gift for yourself from the rewards catalogue. Otherwise, redeeming vouchers allows you to reward yourself by purchasing a gift of your choice.
If you are undecided about what type of reward you prefer. You can still exchange your reward points for miles or cash credits in the future.
If you want a gift that can be given to others. Your reward points can be exchanged for cash vouchers to be used at participating merchants, such as restaurants, grocery stores, petrol stations and more.
Pros
Cons
Freedom to choose the reward you want
Limited rewards catalogue
Flexibility to redeem only when you want to
Current items in rewards catalogue might change by the time you choose to redeem your reward
Points can be used to offset your spending
Miles conversion fee
What to consider when choosing a rewards card:
Rewards earn rate: How many reward points will you be getting per dollar spent?
Categories with higher reward points given: Which categories will give you more points for your spending?
Variety of rewards catalogue: How extensive is the bank’s rewards catalogue? Does it have rewards that you will want to redeem?
Which rewards credit card should you get?
Check out the rewards cards listed below or read this article to find the best rewards cards in Singapore.
Perks
Credit card
Alternative option
Flexibility to choose preferred category
UOB Lady’sChoose 1 category (from 7 categories) that will earn you 10x UNI$ (20 miles) per $5 spend
UOB Lady’s SolitaireChoose 2 categories (from 7 categories) that will earn you 10x UNI$ (20 miles) per $5 spend
Highest rewards earn rateCiti Rewards Card Earn 10X Rewards points for every $1 spent on online purchases
OCBC TitaniumEarn 10x OCBC$ for every $1 spent on retail, in stores and online
Read full review here
Rewards credit card promotions available
Here are the ongoing promotions for some of the cards listed above and more!
Citi Rewards card
UOB Lady’s card
Best credit cards for each spending type
Here’s a thought: there is space for more than one credit card in your wallet!
Choosing one type of credit card doesn’t mean that you can’t hold another; the trick to maximise returns on your credit card spend is to hold multiple credit cards (responsibly), with each credit card serving a specific purpose.
For example, you might use the Citi Rewards card for your online spend, but opt for the CIMB Visa Signature for grocery spend while using the UOB PRVI miles for all other spend.
However, keep in mind that with more credit cards also comes more bills to keep track of and pay. By trying to meet the minimum requirements across all your cards, you might unknowingly be expanding your expenditure more than necessary every month, which adds up to a lot in a year.
If you are looking for a credit card that helps you optimise savings for spending in a specific category, you can check out these guides:
Credit cards for online shopping
Credit cards for grocery shopping
Credit cards for dining
Credit cards for shopping
Credit cards to use as your EZ-Link Card
Credit cards to use for Grab
Credit cards to pay utility bills
ALSO READ: Best rewards credit cards in Singapore (2021)
This article was first published in SingSaver.com.sg.
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