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Offer ends 31 Oct 2021
Eligibility criteria, terms and conditions, fees and charges apply
Rewards credit cards offer you points for your everyday spending, which can be redeemed for a range of flexible travel and lifestyle rewards such as air miles, dining, discounts at the supermarket, and more. Plus, a number of providers in Singpore offer tempting sign-up offers like free luggage or bonus cash credits if you meet certain spending goals.
Read on to find out what you need to know about rewards credit cards, including the key benefits and costs to consider.
Rewards credit cards usually earn you points for every S$1 spent on eligible transactions. When you have earned enough points, you can redeem them for rewards such as travel, flight upgrades, gift cards, cash back and merchandise.
Most rewards credit cards also have higher standard interest rates and annual fees than other options, because it costs lenders money to offer a rewards program. This makes it important to compare the potential costs against the value of a rewards card so you can decide if the benefits are worth it.
The definition of an “eligible transaction” can vary depending on the credit card and rewards program, but it generally covers most of your everyday purchases, including spending at retail stores, supermarkets and petrol stations. Common exclusions are bill payments, cash advances, balance transfers, instalment payments and other account fees and charges including annual fees and late payment charges. Check the rewards program terms and conditions for a full list of exclusions so you know when you will and won’t earn rewards.
The rewards you can get with a credit card depend on the card you choose and the rewards program. Some of the most popular reward categories include:
The steps required to use your points to redeem rewards varies depending on the credit card and the rewards program. But there are a few key factors to remember:
There are a variety of different rewards credit cards you can compare and choose based on the benefits you want.
Many credit card companies in Singapore have their own branded rewards programs for customers. These options allow you to redeem points for a variety of rewards, including frequent flyer points travel, merchandise, gift cards and credit on your account. Some credit cards with their own rewards programs are:
Many of these rewards programs also offer auto-redemption for specific rewards, such as cashback, gift cards or frequent flyer points. For example DBS has rewards program in conjunction with Singapore Airlines and Air Asia with DBS Rewards KrisFlyer Frequent Flyer Program,
Frequent flyer programs are traditionally designed to earn you points and other benefits when you travel with a particular airline, such as Singapore Airlines. There are two main ways you can earn frequent flyer points with a rewards credit card in Singapore:
These types of rewards cards add credit or “cash” to your account when you meet certain spending requirements. Most cashback credit cards offer a percentage of your total spends as cashback, or provide a one-time cashback sum as an introductory offer when you apply and are approved for a specific credit card.
You can also get cash back through most of the frequent flyer, credit card and supermarket or retail rewards programs outlined above. Just choose the “cash” or “gift cards” category of your rewards program to see what options are available.
Comparing credit cards helps you find the features that suit your lifestyle while also keeping costs affordable. Below, you’ll find a checklist of things to consider when you are comparing reward credit cards.
Rewards credit cards often come with a variety of additional features that can add value to the account you choose. Popular perks include:
The value of a rewards credit card depends as much on the cardholder as the actual card you choose. A rewards credit card may be a great option if you don’t want the hassle of tracking too closely your expenditure in order to maximise for cashback or miles.
However, instead of making a definitive statement about whether or not reward credit cards are valuable, let’s take a look at the key factors that make them likely or unlikely to work for you.
It’s worth noting that there are some exceptions to the guidelines above. If you can’t afford a high annual fee, for example, you might still get a lot of value out of reward credit card with no annual fee. On the other hand, if you regularly use a credit card but also have a lot of debt, it might be better to switch to a balance transfer or low interest rate credit card so that you get value out of paying less interest.
While rewards credit cards can be a useful way to get something back for your purchases, it’s important to remember that you have to repay everything (plus interest). By factoring in both benefits and costs when you compare reward credit cards, you can find an option that suits your needs.
Most rewards programs allow you to to view your points through an online account centre. Usually, you need a membership number or username and password to log in. Once you’ve logged in, you should be able to view your points and redeem them for the desired rewards.
This will depend on the credit card, but generally, you can’t refund rewards or points once the transaction has been made.
Tiered rewards are rewards which typically earn you more for spending more, because the percentage of your rewards increases (up to a cap). A tiered reward could offer you 1% cashback for the first $250 spent and 3% for the next $250 spent. A fixed reward system will usually offer the same rate, regardless of the amount of a purchase.
In truth, there’s no one ‘best’ rewards card as what will work best for you will depend on your individual circumstances, and factors including the way you like to spend.
Again, that’s up for you to decide. It’s important to shop around and, if rewards are a deal-breaker for you, a good starting point may be to look at the ‘Bonus Rewards’ for spending on a certain category.
On the other hand, if you don’t want to wait months for reward points to accumulate, you may want to think about a cashback credit card.
Some credit card reward programs allow you to transfer points to frequent flyer programs, including American Express Membership Rewards, DBS Rewards and Citi Rewards. Other reward programs such as the Kris Flyer Rewards Program lets you earn and redeem points with partnered airlines and organisations.
Read the terms and conditions or contact your rewards program provider directly to confirm where else you can earn and use your points.
The number of points you need depends on your credit card and the reward/s you want to redeem. For flights, most frequent flyer programs have a points calculator available on their website.
In regards to other types of rewards, most programs have an online catalogue that allows you to browse the rewards on offer and see how many points you need to redeem them.
As a financial comparison service, we don’t recommend any specific products. Instead, we provide you with the information you need to make an informed comparison and decision. When comparing rewards credit cards, consider your spending habits to determine whether the rewards you’ll receive will outweigh the costs of the card.
Sally McMullen is Finder's credit cards and frequent flyer editor by day and a music maven by night. She's also one half of the Pocket Money podcast. Her byline can be spotted on Yahoo Finance, Dynamic Business, Financy and Mamamia as well as Music Feeds and Rolling Stone. Sally has a first-class Honours degree in Communications and Media Studies (majoring in Journalism and Professional Writing) from the University of Wollongong.
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