A reason why cashback cards seem to be around every corner is largely to do with the image a credit card has acquired. While many see the benefits a card provide, a lot of people still approach credit cards with apprehension and view them as instruments of debt. Cashback cards were introduced to help us save on their expenses and make us more open to the thought of using credit cards.
In particular, cashback cards have been very successful among people who see little value in collecting points and miles, and prefer the instant gratification of cashback. Here’s a look at the best cashback credit cards that you can get your hands on in Singapore.
The Unlimited Cashback card places no limits on the amount of cashback you can earn. It is the latest card from Standard chartered and if you apply for it online, you can choose between S$138 cashback, a S$150 Caltex StarCash card or S$150 worth of Uber credits.
Categories: Categories don’t apply to this card. Why? This card gives you 1.5% cashback on all eligible expenses that you charge to it. Until 30 June 2017, you’ll even get 3% cashback on foreign currency expenses. However, note that as with most cashback cards, the expenses that won’t earn you any cashback are cash advances, fees and charges, tax payments, insurance premiums, etc.
Spending requirement: The Standard Chartered Unlimited Cashback Card has no minimum spend. This means that you can earn the 1.5% on any expense as long as it’s made in an eligible category.
Yet another card with a name as straightforward as possible, the Citi Cash Back card offers cashback on a plethora of expenses and follows similar lines in terms of categories and caps as the OCBC 365 card. The card is offering 20% cashback on all Grab Taxi rides up to 6 July, 2017. Up to 30 June, 2017, if you apply for the card and get an approval, you are eligible for a cashback of S$120 and 7 free rides with Grab Taxi.
Categories: The card does offer the added advantage of higher cashback rates for dining and groceries as compared to the OCBC 365 card. For instance, dining expenses and grocery expenses would fetch you a cashback of 8% all year long. Furthermore, the cashback applies not just in Singapore but globally. Petrol expenses charged at stations like Shell and Esso provide savings of up to 21.8% and 20.88% respectively whereas charges made at any other station would fetch a cashback of 8%.
The downside is that it doesn’t cover enough categories. Outside of groceries, dining and petrol, any other expenses would fetch a cashback of only 0.25%.
Spend Requirements: You need to run up a slightly higher monthly bill than the OCBC 365. The minimum monthly expenses required to achieve the cashback is set at S$888 a month. The cashback earned on each of these categories is capped to S$25 a month. Failing to do so would only earn you a 0.25% rate of cashback.
American Express had the True Cashback Card with its cashback without any monthly cap, much before Standard Chartered brought out the Unlimited Cashback card. This is a great card to have if you use your credit card frequently, and the bulk of your expenses don’t fall in one category or another.
Categories: Just like the Unlimited Cashback Card by Standard Chartered, this card gives you 1.5% cashback on all payments made through the card. The True Cashback Card also offers 3% cashback for transactions of up to S$5,000 for the first 6 months of getting the card. If you spend more than S$5,000 during that period, then your cashback would revert to the standard 1.5%. Again, payments towards pre-paid cards or traveller’s cheques, cash withdrawals, instalment payment plans, balance transfers, interest and fees would not be eligible for cashback.
Spend requirement: You don’t have to meet any minimum monthly spend criteria and there are no restrictions on how much cashback you can get. Each transaction will be rounded off to the nearest dollar before the cashback is estimated. Read our review of this credit card here.
How do you pick the ideal cashback card?
Before you go out and get yourself a cashback card, there are a few things you need to consider. Firstly, you need to check your monthly expenses. Are they exceeding a certain limit? Are these expenses unavoidable? Figuring out your monthly expenditure pattern can go a long way in deciding on a card.
If it crosses the highest spend requirement on this list which is S$888, then you need to consider where the money is going. If it’s going towards a specific category, you’d be better off going with a card that offers higher rates of cashback on the category you spend on the most.
If you’re the type who can’t be hassled with categories or doesn’t use a card too often, then a cashback card which provides a blanket rate of cashback on all expenses without any caps or spend requirements might be the better route to go.
Are these the only options?
The short answer is, No! If these are not the credit cards you are looking for then here are some other that you can choose:
- OCBC 365 Credit Card
- HSBC Visa Platinum Credit Card
- Citibank SMRT Platinum Visa Credit Card
- UOB Delight Credit Card
- Standard Chartered SingPost Platinum Visa Credit Card
Regardless of what you choose, just keep in mind that even the best cashback rates can’t outrun poor payment habits. Pay off your monthly bills in full to enjoy the most of your cashback.
If you’d like to get a cashback credit card, BankBazaar is here to help. We provide you with over 80 choices so that you can find one that best suits your needs. And when you’ve made up your mind, go ahead and apply directly on our site.