The purpose of a rewards credit card is to provide you with a variety of points, miles, etc. These types of cards tend to give high tier rewards and loyalty programmes when you shop with specific merchants over time.
You can gain certain benefits from shopping at places like grocery stores, overseas shops, restaurants, and many others. Most if not all credit cards offer these kinds of rewards, so make sure to keep track of which ones suit your needs the most.
No one rewards card is better than all others. Your rewards card must match your purchasing preferences. It depends entirely on where you tend to spend your money most often, as well as how often you travel and manage your credit. If you take the time to consider this before you go looking for a credit card, you’ll find a much better one than if you didn’t.
|Credit Card Name||Bonus Rewards Points||Spending Categories|
|Citi Rewards Card||10X Rewards - $1 = 4 miles||Online, transport and food|
|Titanium Rewards Credit Card||10X Rewards - $1 = 4 miles||Online and retail purchases|
|UOB Lady's Card||10X Rewards - $1 = 4 miles||One category of your choice|
|HSBC Revolution Card||5X Rewards - $1 = 2 miles||Online shopping and dining|
|UOB Preferred Platinum Visa|
|10X Rewards - $1 = 4 miles||Mobile contactless, online shoppig|
|DBS Woman's Card||5X Rewards - $1 = 2 miles||Online and overseas purchases|
There are two main types of rewards credit cards: air miles and cashback credit cards:
Every card varies depending on where and how much you spend with it. Some cards work best in restaurants while others are more for travel purposes. You need to figure out which card suits your spending style the best.
These cards are especially useful if you have something big coming up, such as a vacation trip or a wedding. Obviously, the more you spend, the bigger your cashback rewards.
Should your rewards card be your primary card, it will gain stronger rewards rates. This means you will need to keep track of your spending. Typically, the more you spend on your credit card, the more rewards you will gain in return.
You either get one flexible rewards credit card or several specific cards. It all depends on where you spend the majority of your money.
New card promotions and renewal bonuses are much more useful than you may realize. Generally, you will need to spend at least a little on your card in order to avail these bonuses. There may also be a time limit to complete these purchases. These rewards vary in value, so be sure to look into them before choosing your credit card.
Every time you swipe your card, your bank makes a bit of cash from the merchant. This makes it worthwhile to use a few cards with a single purchase. Be careful, because if you use too many and don’t reach the minimum spending level, you won’t qualify for the maximum rewards not to mention the interest build-up.
The credit card is the main way that banks sell you things like general products, loans, and so on. To further this plan, most banks offer additional rewards for those willing to make a second account.
The majority of banks have an online shopping portal for your convenience. You can buy a huge number of things here. They tend to be connected to Agoda, Lazada, or some other such site.
Using this portal earns you bonus rewards on top of what your card normally offers. It is very easy to find on your bank’s website. It takes very little time and is well worth the effort.
The best way to get the most out of your rewards is to use the card specific to the category you want rewards from. You should pick a card based on whether it gives you groceries, air miles, or whatever rewards you want the most.
If you have more than one specific category interest, you may want to carry two different cards. That way, you can choose which card you’d rather use at the time. Just make sure you still reach the required level of spending for each card to earn rewards and avoid interest build-up.
Another way to improve your rewards is to find a good redemption method. Most card issuers offer a variety of rates depending on the methods by which you redeem your rewards.
Let’s take air miles as an example. If you redeem your air miles after a short time, they won’t gain you as great a reward as if you waited for a longer period.
All rewards work in a similar fashion. There is always a certain amount of waiting time that results in better reward redemption. The length of time is different, depending on what you are aiming for.
It isn’t wise to use too many credit cards at once, due to interest build-up when you don’t spend enough on each of them. That being said, keep an eye out for promotions and bonuses on the cards you do have. You have the chance at thousands of different rewards with just a few cards, especially when signing up for new ones.
Keep an eye out for things like seasonal offers, air miles promotions, cash rebate offers, and so on. They’re out there. You just need to look for them!
A rewards credit card helps you earn points, called rewards points. You earn these points when you spend using your credit card. This ability to earn points entices you to spend using your credit card instead of with cash. As you collect reward points, you can redeem a huge number of rewards with them.
There are several reward options, such as discounts on hotels, food, air miles, electronics, and so on. The majority of these cards have an expiry date on rewards points, forcing you to use them within a certain amount of time.
Some of the best credit cards in Singapore have no expiry date for their rewards points. You can keep them for life. This allows you to save up a larger amount of rewards points and get an even better reward in the future.
Tired reward systems work in levels. Instead of having a flat reward system, you earn more and more over time. For example, you may earn 100 reward points for your first $300, then 200 for the next $300, etc.
Some tiered systems also allow you access to additional redeemable rewards when you’ve spent a certain amount. This can be beneficial. It depends on whether you prefer flat rewards or tiered rewards.
The most commonly used air miles program in Singapore is KrisFlyer Miles. The majority of cards partner with them, so you can earn air miles with all of them.
The higher your card’s reward rates, the higher the annual fee and minimum spend requirements. Lower reward rates may have no annual fee at all.
Generally, you will need to spend somewhere around $500 each month if you want to make full use of your rewards card.
Credit cards tend to have an incredibly high interest rate to balance the rewards you’re receiving. Most reach 25%; sometimes higher. If you can’t pay off these charges by the end of the month, you will gain even more interest on top of it. This interest will be far more expensive than the value of your rewards.
If you are unable to pay off your monthly charges, even just on occasion, you should consider getting a lower interest credit card. It is better to pay off your credit limit even if you gain slightly fewer rewards from it.
There are three basic questions to ask yourself when considering a rewards card:
Once you know the answers to these questions, you’ll have a much better idea of whether a rewards card is right for you or not. If you shop online or make card purchases of more than $500 a month, for example, you would probably do well with a cashback rewards card.
On the other hand, if you tend to travel more often than shop, an air miles reward card would be better for you. Alternately, there are all-in-one rewards card options that allow you to transfer your reward points into whatever type of reward you want at the time. The choice really depends on your answers to the above questions.