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:
- 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.
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.