Which Of These Credit Card Users Are You?

Sometimes, less is more. Personally, I find that there’s one too many sites comparing credit cards out there and it’s starting to get a bit confusing. So over here at WealthMastery.sg, I’m going to simplify it down for you to the 3 most common types of credit card users out there.

For this exercise, let’s just set the bar at the lowest minimum annual income requirement of $30,000. This ensures that these card recommendations are suitable for most people in general. So let’s take a look at the 3 types of credit card users below:

The Shopaholic

Citibank Rewards Card

If you’re a shopaholic, the Citibank Rewards Cards comes out as a clear winner for you. It gives you 10x Rewards points for every $1 spent on shopping (clothes, bags or shoes), whether at a departmental stores or an online shopping site. In addition, you can get up to 35% off online shopping at Luxola, Zalora, Reebonz, All Deals Asia and many others. There is even a 6% rebate all year long at Tangs! Every other spending gives you 1 Reward point for each S$1 spent. The thing I like most about this card is its versatility. The points you earn can be used to exchange for vouchers, miles and even cash rebates!

Hot Tips: Most people think that points-based cards are useless because they aren’t able to collect enough points most of the time to redeem anything significant. That is why they usually prefer cashback type of credit cards. However, did you know that at 3,000 points for S$10, the Citi Rewards points redemption scheme actually trumps the 0.3% rate that most cashback cards like the Citibank SMRT or POSB Everyday card offer? Furthermore, if you had earned the 3,000 points with $300 spent on purely on shopping (10x Rewards), it actually gives you a rebate of 3.33% which is trashes the 0.3 – 0.5% other cards give! Thus on average, if a smart credit card user channels all his spending into his Citibank Rewards card, he would stand to get a rebate anywhere between 0.33% – 3.33%!

Overall Features [Citibank Rewards]
• Earn 10x Rewards points or 4 Miles for every S$1 spent on shopping
• Redeem points for Miles, Shopping or Dinner vouchers or even Cash Rebates!
• Get up to 35% off Online Shopping at Luxola, Zalora, Reebonz, All Deals Asia and many more!
• 6% rebate at Tangs all year long and up to 12% on special days
• $670 worth of shopping vouchers upon application
• And many more!

The Practical Family Man

POSB Everyday Card or Citibank Dividend Card

For the practical family man, he has bills to pay and mouths to feed. For that, rebates on groceries, petrol & personal care items are his main concern. I recommend either the POSB Everyday card or the Citibank Dividend card. Both of these cards have up to 5% rebates on groceries. The Dividend card has over 18% savings on petrol at Shell & Esso while the Everyday card has up to 17.55% savings on petrol at SPC. The Dividend card also gives 0.5% rebate on other spends but the Everyday card only gives 0.3%. While the Everyday card seems to lack on several fronts, it makes it up by giving 1% rebates on your utilities bills, Starhub bills, cab fares and even your HDB season parking fee! No wonder it was voted as Singapore’s Favourite Card 6 years in a row!

Hot Tip: Some might want to consider using Citibank SMRT Platinum Visa card to complement their Dividend card as it covers some of the benefits that the POSB Everyday card provides such as the 1% rebate for their mobile bills and up to 7% rebates for groceries!

Overall Features [POSB Everyday Card]
• 5% Groceries Rebates
• 17.55% Petrol Savings at SPC
• 1% off Utilities, Starhub bills & Cab fares
• 1% off HDB Season Parking
• 0.3% Cashback on other spends
• And many more!

Overall Features [Citibank Dividend Card]
• 5% Groceries Rebates
• Over 18% Petrol Savings at Shell & Esso
• 5% Health & Beauty, Pharmacy Stores
• 0.5% Cashback on other spends
• And many more!

The CashBack Chaser

Standard Charted Manhattan World MasterCard or UOB One Card

If you’re not sure, it never hurts to get a general cashback card. So these cards should be the obvious no brainer to go to right? Not necessarily… Each of them come with their own terms and conditions, so be sure to read on carefully!

Both of these cards provide a decent rate of cashback – 3% for the Manhattan card and 3.33% for the UOB One card. However, you need to spend beyond $3000 in one month in order to qualify for the 3% cashback on your Manhattan card. It is also capped a $200 per quarter and $800 per annum.

As for the UOB One card, your spending would need to be above $300 to qualify for each month. You will also have to use the card for at least 3 transactions per quarter. However, UOB One card gives you an extra 2% cash rebates on overseas spends which is not present on the Manhattan card.

Hot Tip: These cards are great for big ticket items or celebratory events like weddings and birthdays. In fact, I have a few friends who even named the Manhattan card as “The card to go to” for weddings. However, to fully maximize it, one must keep track of their quarterly expenditure because of its cap of $200 CashBack per quarter.

Overall Features [Standard Chartered Manhattan World MasterCard]
• Up to 3% CashBack for spending over $3,000 per month
• Capped at $200 CashBack per Quarter
• Maximum of $800 CashBack Annually
• And many more!

Overall Features [UOB One Card]
• 3.33% Cash Rebate Locally per Quarter
• Additional 2% Cash Rebate Overseas
• A minimum of 3 purchases with a minimum spend of $300 per month
• And many more!

Image Credits: salary.sg

Which is your favourite credit card and why?

Do share with us in the comments below!

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