Compare the Best Cashback Credit Cards in Singapore (2021)

What is the Meaning of ‘Cashback’?

Obviously, cashback doesn’t mean you will get a bunch of spendable income in the mail every so often. Cashback credit cards don’t work like that. You don’t get actual money. What you do get, is credit on your card.

When this happens, your bank statement will reflect a positive charge. You can use this extra credit on whatever credit card purchase you want. You cannot withdraw it.

How do You Use a Cashback Credit Card?

When using a cashback credit card, a certain percentage of your expenditures will return as a rebate for your next purchase. For example, if your cashback credit card offers a 5% cashback on petrol and you spend $100, you’ll receive $5 in cash rebate to use on your next credit expense.

The same goes for any kind of cashback credit card. There are cards that offer cashback deals for flights, food, overseas wares, and so on.

How can I Earn Cashback?

You need to know how cashback works in order to figure out how to earn as much of it as you can over a short time. Once you’ve taken a look at what you spend on the most, you can determine what type of cashback credit card will be best for you.

If you travel overseas quite often, then you would want a cashback credit card that gives better rebates for overseas spending. On the other hand, if you prefer shopping, you’re better off with a cashback credit card that focuses on that.

What Kind of Purchases are Eligible for Cashback Rewards?

Cashback usually works with certain categories, like travel, shopping, fuel, and so on. Some of these cards come with a limit on how much rebate you can gain as well as a minimum amount you need to spend in order to get it at all. Other cards don’t have these restrictions at all.

The Standard Chartered Unlimited Card, for example, has a flat rate of 1.5% cashback, regardless of minimum spend. Do some research on top cashback credit cards online and see which works best for your specific needs.

What is the Highest Cashback Rebate Possible?

Cashback credit cards are competing with one another all the time. Not so long ago, 5% would have sounded very reasonable. These days, however, a good cashback credit card will reach at least 10%.

The downside to these higher rebates is that they come with restrictions, such as minimum spends, caps, and expiry dates. It is difficult to acquire a good cash rebate without these restrictions attached to it.

Should I Bother Getting a Cashback Credit Card?

It depends entirely on your lifestyle and what type of rewards you value the most. The two most popular forms of credit cards are cashback and air mile credit cards. Cashbacks tend to be quicker and allow you to earn a reward in a shorter period of time. If you like the idea of purchasing something at a discount every now and then, cashback is the way to go for you!

Air miles credit cards, on the other hand, take a very long time to earn you anything. It can take months to earn enough miles to get a free flight. However, a free flight is significantly more valuable than a small discount on your latte.

What is the Best Cashback Credit Card?

When you search for a cashback credit card, the first thing you should look into is the annual fee. Look for a card that offers annual fee waivers. This way, your cashback rewards will actually be worthwhile.

You also need to look into how each cashback credit card works. Does it have a limit, minimum spending, or any other factor that affects its value? Some banks offer higher rebates but sneak in these limiting factors. Watch out for this!

Lastly, look into where you earn cashback rewards. Some cards offer cashback for grocery purchases, others from overseas purchases, and so on. Consider where you spend the most money and pick a cashback credit card that fits in.

What Are Some Things I Need to Pay Attention to when Using a Cashback Credit Card?

You should keep in mind that a number of cashback credit cards offer a welcome promotion. You can use this to earn a little extra cashback once you hit a certain level of spending.

Some cards also incur extra charges when used overseas. This significantly reduces the worth of your cashback if you spend overseas often. Try to use a card that fits best for your situation.

How Long Does It Take to Receive Cashback from Purchases?

You receive your cashback rebate at the end of each month. The amount you receive depends on your card and on how much you spend. Some cards offer the rebate as credit, allowing you to purchase something at a discount.