Applying for the Best Cashback Credit Card in Singapore 

What Is a Cashback Credit Card? 

When you spend with a credit card, one that gives you a percentage of it back would be classified as a cashback credit card. How would you get the money back? It is usually in the form of discounts or rebates.

How Do Cashback Credit Cards Work?

Most cashback credit cards offer between 1%-10% of cashbacks in different categories of spending, such as general spend, retail spend and utility bills. Cashback credit cards that have partnerships with certain retail or travel brands usually offer higher rebate rates with their retail partners. Another area which has one of the highest rebate rates is petrol, with some cards offering up to impressive rates of 20%! 

To get an idea of how it works, here is a short and simple example. Say a cashback credit card offers a 5% rebate on general spending. If you spend $1,000 per month, you would get $50 back. 

However, it is worth noting that most cashback credit cards do have some limits and requirements set in place. 

Here are some of the best features and main benefits of certain credit cards, which you should not miss out on! 

  1. Unlimited Cashback 

Some cashback credit cards offer unlimited cashbacks with no cap at all on the amount of rebates! This is particularly suitable for the affluent, who may have high spending budgets every month. Having unlimited cashback allows you to maximize your rebates and rewards for every budget, including high budgets. 

  1. No Annual Fee 

Many cashback credit cards do impose an annual fee for their outstanding privileges and rebates which cardholders get to enjoy. However, if you are on the lookout for a cashback credit card which does not require you to fork out more from your pocket, fret not, as there are still cashback credit cards which offer the same rebates and privileges with waived annual fees. 

  1. Spend Categories

When choosing the most suitable cashback credit card for yourself, do keep in mind the areas which you usually spend most on. It would be handy if you have an expenditure tracking sheet from the past few months for you to take reference from. 

You may be wondering – why would I need this? Well, that is because most cashback credit cards have targeted areas of focus when it comes to the rebates and discounts they offer. 

For example, the HSBC Visa Platinum card offers cashback on daily family spending, such as dining, groceries and fuel. So, families with higher expenses on food and petrol would find this card suitable for them. 

On the other hand, the CIMB World MasterCard offers more rebates on entertainment and leisure, such as duty free shopping and golf perks. This would be more suitable for avid travelers.

Applying for a New Cashback Credit Card? 

If you want to apply for a new cashback credit card but are not sure not sure which one is the best one on offer right now, you might want to check out an analysts’ summary of some of their top picks for cashback credit cards! 

We understand that different customers have different needs, such as a varying amount of monthly spend, versatility, ease of use and specific spending sectors. Save the trouble of having to perform confusing calculations on your net returned value, as our analysts have already accounted for all the rebates and annual fees involved after scouring through more than 1000 pages of credit cards and their terms. 

The Best Credit Cards in Singapore are Cashback Cards: Here’s Why

Person swiping credit card on a Point-Of-Sale Machine

If you didn’t know what cashback is by now, let me spell it out for you in the easiest way possible: you get literal cash back for spending your money. Think of it like a discount, or an incentive to splurge on the things you’ve always wanted – you can rest knowing that the expense is not as big of a burden on your wallet as you initially thought. 

As to how to get this cashback, the process is like signing up for any other card out there. Find a credit card that gives you the best benefits for your specific lifestyle. Sign up for that card. And lastly, spend away. 

However, finding the perfect card for you is not as easy as it may seem since there are varying benefits and costs from provider to provider, and even card to card within the same company. There are also many forms in which a company provides cashback. 

One way credit-card companies provide cashback is by proving a flat rebate. This means that you will receive a certain percentage of your money back for any purchases you make that fall into the category recognised by the credit-card provider. Cards like the UOB One Card can give u 5% cash back rebates and an extra 5% on select merchants, meaning you can save up to 10% of your money on necessary purchases you have to make anyway. 

There are many other ways credit card providers implement cash back that is not necessarily pure hard cash. For the avid traveler, cards such as the Citi Cash Back Card offer cashback both at home and abroad so that you can live that jetsetter lifestyle without feeling that massive pinch. If you like traveling in style, the DBS Altitude Visa offers customers 3 miler per dollar spent on flights and many more travel perks. 

Sick and tired of paying annual fees for cards and think this is all a scam? Do not fret as there is a cashback card for that too. OCBC 365 card offers great rebates with no annual fee, making its reward rates highly competitive on the market. Say you are an avid shopper, the Citi Cash Back+ Card has a top limitless rebate rate, making it perfect for the Orchard Road frequenter. 

If you are a massive foodie (and let’s be real, most Singaporeans are) the Maybank Family & Friends MasterCard offers a whopping 8% cashback on selected categories, one of which is dining and food delivery. 

These are only a few of the many, many perks you can enjoy when you sign up for a credit card with cashback. There are tons of options out there so be sure to take your time, explore the field, and consult resources to find out which one is four you. 

Check out this article for the full breakdown of the various credit cards out there or use our handy credit card comparison here to quickly see which card best suits your needs. 

Happy shopping and saving!

Tips and Tricks in Choosing the Best Credit Card in Singapore for Cashback

iZettle payment terminal with VISA Card

With the further easing of community and border measures, there is no time to waste on collecting air miles, cashback and rewards. There is no free lunch in Singapore? Guess that is not the case when it comes to cashback credit cards in Singapore. There is no top one, but there is a high chance that there will be a best for each individual.

How do cashback credit cards work?

Each time you make an eligible purchase with a cashback credit card, there is a potential in earning a cashback. Cashback credit cards reward cardholders with a percentage of the total amount they have spent. With that cashback accumulated, it can be effectively used to pay off some or all of the account balance depending on each individual’s spending habits. For example, if your cashback credit card offers 8% cashback on all spending, then spending $100 will earn you an $8 credit on your card. Having said that, it is crucial to check on the minimum required spend per month to qualify for cashback. On top of that, most cards have a cap on how much cashback you can earn per month or year. Hence, choosing the right credit card is crucial.

2 main factors to choose your best cashback credit card:

  1. Spending habits

The key factor in determining what type of cashback credit card will be of greatest value to you would be by gauging your personal current spending habits and preferences. With greater disposable income comes greater flexibility in spending and greater spending power.

  1. Lifestyle

An individual who goes on overseas trips often should not be using a cashback credit card suited for grocery shopping where exceptional rates are offered when used in specific supermarkets or grocery stores. 

Deciding between miles vs cashback, cashback or rebates?
To determine which is your suited type, it is important to understand the value they would eventually provide. Air miles credit cards enable cardholders to earn air miles for every dollar spent on the card. From the air miles accumulated, you may redeem them for your next flight tickets. This may be ideal for frequent travellers and high spenders as air miles will accumulate faster to enable redemption. As for cashback credit cards, it may be more appealing to those who believe that cash is king. Getting card benefits in cold, hard cash is the way to their hearts. Who would not want tangible savings for a rainy day? Finally, a close sister of cashback, cash rebate credit cards rewards you with rebates in your card that can be used to offset your next purchase. It is ideal for those with predictable and consistent spending habits as the rebate can only be applied to offset future purchases and not be converted to cash on hand. 

Finally, each card offers differently structured reward systems. The only way you can decide which cashback cards in Singapore suits you best is by understanding your own preferences and spending habits. With that, you can then better calculate your savings from cashback.