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Cashback credit cards reward you for your spending. Use this guide to see the different types of cashback cards available in Singapore, and learn how to get the most out of these types of card.
A cashback credit card gives you rewards in the form of dollars or credit on your account. These offers vary between cards, with some earning cashback as part of an ongoing rewards program and others providing a one-off cashback reward offer for new customers who meet certain spending criteria.
As well as using credit card points for air miles or gifts, some rewards programs give you the option to redeem your points for cashback on your account.
The cashback you earn each month is accumulated, after which you can use them to offset your spending for the month, depending on several requirements. Cashback rewards do not grant you instant discounts per transaction. Instead, cashback is typically credited back to you in the form of rebates which are deducted from your next credit card statement.
Generally, there are three different categories of cashback to be aware of for a credit card. These are:
Just like other reward credit cards, you need to meet the spending requirements or eligibility requirements to earn cashback. For example, cashback may only be earned on “eligible purchases”, with common exclusions including cash advances, balance transfers and refunded purchases. Some cashback credit cards may also cap or limit the amount of money you can earn per month or year. Make sure you read the card’s Product Disclosure Statement for more information.
While the cashback rate varies from product to product, most cashback returns are somewhere between 1-5% of the total value of the transaction. This figure can vary depending on the category of the products you spend on (grocery, dining…etc). Plus, you’ll want to consider merchant bonus cashback rewards schemes, which in some cases go as high as 10%. It’s worth keeping in mind that the best cashback rates vary depending on a number of factors, such as whether you spend on a weekday or weekend in some cases.Back to top
Weighing up some of the pros and cons could help you determine whether a cashback credit card is right for you.
If you’ve decided you want a cashback credit card, you can apply online in around 5-10 minutes via a secure web service. But before you apply, make sure you meet the eligibility requirements and have the necessary documents needed to complete your application. These will vary from card to card, but you can usually expect the following eligibility:
Once you’ve provided all of this information and hit “submit”, you should receive a response regarding your application within 60 seconds. If you’re approved, you’ll receive your card in the mail within a week. If the card has a cashback offer, you should read the terms and conditions so that you know when you can expect to receive the cashback credit in your account.
Is it better to get cashback or rewards points?
That depends. Cashback is more straightforward and can more of a benefit to those who like to cut the cost of their spending in the shorter-term. Meanwhile, those who are very patient and are happy to wait until they have accumulated lots of points may find they get
extra value out of their rewards.
Can I use cashback to pay the annual fee or my credit card debt?
Yes, you can generally use cashback rewards to pay your card’s annual fee or the outstanding balance of a credit card.
Where can I find out more about cashback and rewards points capping?
If you’re interested in a specific cashback credit card or rewards program, you may also want to read through the terms and conditions provided by the credit card issuer. This will outline the full terms and conditions of the cashback offer or rewards program.
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