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Cashback rewards offer a simple and effective way to lower your monthly credit card bill. If you love to make savings wherever possible, it figures that you’ll want to look for cards with the maximum cashback potential. However, there are usually a number of limits to cashback credit cards and it’s important to understand these before you lodge an application.
We’ll help you weigh the pros and cons of these cards, and how to compare the best* unlimited cashback credit cards for you.
Cashback credit cards offer you rewards by crediting your account. As you use your card, you will accumulate “cashback”, typically calculated as a percentage of your spend. The percentage you are awarded will depend on the rates attached to your specific card.
Some cards offer cashback on all spending, while some only offer cashback on designated purchase types. The total amount you are rewarded through cashback is generally applied as a credit (discount) to your next monthly statement.
Unfortunately, no, they’re not. While cashback credit cards may advertise themselves as ‘”unlimited”, there is generally a range of terms and conditions attached that limit the amount of cashback you can earn. When estimating the amount you may save with a cashback credit card, be sure to check the following:
There are a number of factors to consider when choosing a cashback credit card. These include:
Cashback credit cards can be a simple and effective way to lower your monthly credit card bill. A reward in the form of saving money is a benefit everyone can make the most of.
As with all credit cards, it’s important to read the terms and conditions associated with a card before signing up. If you want a credit card that offers cashback, start comparing your options here.
Will I ever see my cashback rewards as money in my account?
No. While you are earning “cashback”, the amount you earn will either be listed as a credit or discount on your next monthly bill. Should you ever cancel your credit card, there is a good chance you will lose out on the savings you earned in the last month. It’s best to ask your bank exactly how cashback rewards are handed out before you apply for the card.
Can I pay my IRAS tax with a cashback credit card?
You may be able to pay your IRAS tax with your cashback credit. You’ll need to contact your bank and find out if they offer a tax payment facility and whether your card is eligible for this service. Check out our guide to paying tax with a credit card to learn more.
Why is a cashback credit card better than other credit cards?
One type of credit card is not better than another. The best credit card for you will depend on how you plan to use the card and your financial situation. An Air miles credit card could be the best option for a frequent flyer, but a complete waste of time for somebody who plans to stay in Singapore for years. The same goes for cashback credit cards, they are the best option for those who have spending habits best suited to maximise the cashback opportunities.Back to top
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