So it’s time you got a credit card. But with so many out here, how do you know which to get? “You need to decide which type of reward suits you best,” says Richelle Pek, Regional Product Manager of GoBear. We break those down here*.
So it’s time you got a credit card. But with so many out here, how do you know which to get? “You need to decide which type of reward suits you best,” says Richelle Pek, Regional Product Manager of GoBear. We break those down here*.
Budget-friendly
Maybe you don’t want a card that lets you spend whatever you want – that’s OK! In fact, we applaud your self-restraint. But it’s good to get a credit rating so that when you want to make a big purchase (like a house), the bank will see you’re able to pay back on those loans. Here’s a good card to start with:
CITIBANK SMRT CARD
• Annual fee: $160.50 (waived for the first two years)
• Minimum income: $30,000
Benefits
• Earn SMRT$ when you spend, and use it to redeem SMRT rides, cash rebates or shopping vouchers
• 5% savings on fast food, movies and coffee at locations like Burger King, McDonald’s and Starbucks
• Up to 3% savings on online shopping
• No convenience fee charge for EZ-Link EZ-Reload Auto Top-up transactions
Travel
Another way to earn with credit cards is via air miles. Yes, spending could help fund your next holiday or at least your first upgrade. What’s more, a lot of these cards offer travel insurance and a chance to earn even more points when you’re overseas.
STANDARD CHARTERED VISA INFINITE CARD
• Annual fee: $588.50
• Minimum income: $30,000
Benefits
• Earn up to 3 air miles for every $1 spent with a minimum spend of $2,000 in a statement cycle
• 35,000 miles or 15,000 miles and a Samsonite luggage bag worth $950 when you sign up
• 10% cash rebate for all your Uber rides worldwide, including Singapore
Dining privileges
A lot of cashback cards also offer dining privileges but beyond groceries and necessities, it’s also good to have a card that suits your lifestyle. If you eat out a lot and like to party on the weekends, there’s actually a card for that.
UOB YOLO CARD
• Annual fee: $192.60 (waived for first year)
• Salary requirement: $30,000
Benefits
• 8% rebate on weekend dining and entertainment transactions with a minimum spend of $600 per statement month (3% cash rebate on weekdays)
• 0.3% rebate on all other transactions
• Free Grab rides every weekend (limited to the first 200 Grab rides per weekend, and with at least one dining and entertainment transaction made on a weekday)
• Dining and entertainment perks like priority queue and free access to clubs, one-for-one specials at bars and movie ticket deals
Cash back
Who knew you could spend and get money back for it? Cash back is a great way to make money as you spend it. It can be particularly good for big-ticket items (like a wedding banquet). There are also lots of dining benefits attached so this is a good card for foodies too.
OCBC 365 CREDIT CARD
• Annual fee: $192.60 (waived for the first two years)
• Minimum income: $30,000
Benefits
• 3% cash back at supermarkets island-wide and on online shopping with a minimum spend of $600 for the statement month
• 6% cash back at local restaurants on weekends (3% cash back on weekdays and at overseas restaurants)
Most Singaporeans pay off their debt in full each month. In fact, as of 2015, only 5% of Singaporean credit card holders had rollover debt.
Source: singsaver.com
Images 123RF.com Text Karen Fong Additional Text Cheryl Lim. *Information correct at time of print.
