The Best Cashback Credit Cards For Different Types Of Spenders
Get the Best Credit Cards in Singapore
In the crowded credit card market space in Singapore, it is easy for consumers to get confused about which cards they should get for themselves. While most credit cards started as rewards cards, the market has now largely changed with banks offering more and more cashback cards. This is because consumers here have shown a strong preference for cashback cards. Given that they are a practical way to be rewarded – a straightforward discount in cash when you spend and meet the card's criteria.
Cashback cards in Singapore give rebates in the range of 3 to 10%, but each card tends to have a unique target audience in mind. While some of these cards target those who use their cards for everyday shopping in grocery stores, others may target those who love eating out, giving them higher rebate rates on a specific category. Here, we present to you the 4 best cashback cards for 4 different spending profiles.
For Home Managers: POSB Everyday Card
The home manager is likely to be the one who holds the key to the finances in the family. You take care of paying all the utility bills, buying the grocery at home to ensure that you never run out of food in the fridge and shampoo in the bathroom, and probably take the pleasure to cook over the weekends for a family meal.
Home managers will love POSB Everyday card because it offers a well-rounded cashback on things you tend to spend on a day-to-day basis. For instance, it offers 8% cashback on online food delivery, 5% on grocery shopping at Sheng Siong, 3% cash rebate at personal Care store at Watsons, 3% on online shopping and other dining spend, up to 20.1% fuel savings at SPC and even 1% cash rebate on recurring utility bills. The rebates are, however, capped at S$15 per category per month.
For High-Spenders: UOB One Card
One of the best types of spenders who will benefit greatly from a cashback card is those who tend to spend a relatively high amount on their credit cards every month. Consumers in this category may be those who tend to travel a lot, or simply love using their cards for all their payments due to the convenience of having all their monthly spending detailed on their credit card bill at the end of the month.
For this group of users, the UOB One card gets you the highest flat rate cashback if you spend at least $2,000 per month. A major pain point for this card is that you need to fulfil other criteria in order to qualify for this rebate:
Spend $2,000 per month Perform at least 3 transactions per month Spend the minimum amount for at least 3 consecutive months to qualify for the quarterly rebate
The UOB One card also offers 2 other tiers of spending, respectively at $500 per month and $1,000 per month, and you need to fulfil the same criteria in order to claim your rebates successfully. This will probably work for those who have recurring payments per month or fixed expenditures so that they will not have such a hard time in tracking that they have fulfilled these criteria.
For Food-Lovers: CIMB Visa Signature Card
Singaporeans love good food, and being able to eat relatively cheaply in restaurants compared to other countries means there are lots of opportunities to use the right credit card to help you earn rebates. If you are looking for a good cashback credit card to use whenever you dine, look no further than the CIMB Visa Signature Card . The card gives you 10% cashback on dining, which essentially waives off that service charge we all hate when dining out. The card is also great to use when you are travelling overseas, since it has a very low 1% foreign transaction fee, so you can continue to use it when dining overseas!
The CIMB Visa Signature's dining rebates are also not only limited to restaurants, which means you also earn rebates when you pay food caterers for any events you are organising, for alcohol spending in bars, clubs and lounges and even in fast-food restaurants!
There are 2 criteria to successfully get your rebates through – a minimum spend of $500 per month and a minimum spend of 8 transactions of at least $30 within the same statement. The latter can be a bit difficult to track, but if you dine out for at least twice a week or volunteer your card to pay the bill at social gatherings, it shouldn't be hard to qualify.
Article Written by Lynette Tan
Duckju (DJ) is the founder and CEO of ValueChampion. He covers the financial services industry, consumer finance products, budgeting and investing. He previously worked at hedge funds such as Tiger Asia and Cadian Capital. He graduated from Yale University with a Bachelor of Arts degree in Economics with honors, Magna Cum Laude. His work has been featured on major international media such as CNBC, Bloomberg, CNN, the Straits Times, Today and more.