Maximising your Credit Card in Singapore

Singapore has progressed tremendously since its independence due to its stringent laws against crime and corruption and hardworking locals. This has translated to great economic success for the country and is emerging as a global superpower in her own right. 

In such a modern city-state, the financial options made available mean that credit card plans are readily available from several companies. Although credit cards are fuss-free and convenient in comparison to physical cash, it comes with its own set of complications. Hence, it is important to know how to navigate around the world of credit cards in order to make full use of its advantages.

The Different Cash Back Credit Cards

Rated 4.8 stars out of 5, the HSBC Visa Premium Credit Card is considered one of the leading cashback cards in Singapore with its standard interest of 24% per annum. Its annual fee is a hefty 180 SGD, but the fee is waived off for the first two years of usage, and signing up entitles you to 200 SGD worth of Resorts World Sentosa vouchers. However, there is a minimum income of 30000 SGD a year in order to be eligible to apply for the card. 

Another alternative would be OCBC 365 Visa Credit Card, which has received high user ratings and slightly higher standard interest rates at 25.92% per year. A similar waiver is given for new users of this card, with the annual fee being 16.50 SGD otherwise. Card owners must also earn at least 30000 SGD. Besides regular cashback rewards, the card also provides gas-related benefits.

The Citibank Rewards Card MasterCard has also earned a good reputation as one of the best cashback cards in Singapore with a 4.8 rating. With an introductory rate of 0% for six months of balance transfers, it comes with a standard interest rate of 24% per annum. Cardholders’ yearly income should be 30000 SGD minimally, with the card’s annual fee being 192.60 SGD including GST. The card provides rewards in the forms of points.

Make Full Use of the Credit Card Reward Points

An essential consideration to make when deciding which credit card plan to go for is to consider which credit card provides rewards that are most applicable to you as a consumer. Before settling on one card, be sure to compare the rewards with the others on the market since this could help you cut down greatly on your spending. A middle-class person should look for cards that offer reward points for shopping at shops that they frequent. 

Young entrepreneurs who are usually living out of a suitcase should consider a credit card with a good flyer mile programme. One example is Citi PremierMiles Visa Card, which is perfect in his high flyer mile rewards with no expiration. Other key features offered by the card are how Priority Pass™ membership gives you access to more than 600 airport lounges twice a year and best of all, the Complimentary Travel Accident Insurance with up to S$1,000,000 coverage.

While a lot of thought is needed before buying a credit card, many people fall prey to the mistake of opening a credit card for no reason. Check out aggregator sites for information on rates and fees while considering factors like your own credit history and score, so you are able to decide if buying the credit card is worthwhile entirely. Avoid cards that charge costly annual fees as you might up getting close to nothing. Cashback cards are therefore ideal due to their lack or low annual fee.

Consolidate your Spending

With high incomes and high spending being increasingly the norm in this age, it is hard to keep up on which card was used to pay for which expense. While this might not seem like much of a concern initially, splitting up your spending across different cards unknowingly causes you to build a mountain of debt that you later struggle to pay back. In the worst-case scenario, this might lead to you have to sell off your property or declare yourself bankrupt.

There are several ways to avoid getting yourself into such a predicament. An easy way to do this is to only have one credit card, even if capitalism tries to convince you that your income and “needs” makes it natural for you to have more than one. With one card, it is much easier for you to be organised with regards to your spending. Limit your credit card expenditure and pay as much as you can in cash in order to be constantly reminded of your spending. Living a debt-free life is one of the best ways to know you are doing well in life.

However, should you have the need for multiple credit cards, note that miles credit cards and cashback credit cards have incompatible rewards. It might be more worthwhile to consider points-type credit cards that offer more flexibility in that the points can be exchanged for multiple things, from cash rebates on specific merchants or flight miles.

Choose the Best Credit Card for you

With a wide variety of purposes and benefits, the credit card options are countless in Singapore. Take advantage of your position of being in one of the leading nations in Asia, Cards such as POSB, Citibank and OCBC are good in that they are linked to EZ-Link, while the American Express Platinum Credit Card, the POSB Everyday Card the UOB PRVI Miles Platinum Card are the best for buying petrol. In order to pay for products and services and pay in installments, consider UOB One Card.

It is thus important to choose wisely in order to reap the maximum benefits of your credit card and make the yearly cost of the card subscription a worthwhile purchase. With the right credit card, it is similar to a good long-term investment. Equipped with these tips as points of consideration, be sure to do as much research as you can on the best possible plan that suits your individual needs and spending habits. 

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