Rewards Credit Cards

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.

• *Disclaimer

  *The products compared here are chosen from a range of offers available to us and are not representative of all the products available in the market. There is no perfect order for the products we list on our site, so we enable you to re-order and compare products. The initial display order is influenced by a range of factors including commercial partnerships, product costs and conversion rates, so please don’t interpret the listing order as an endorsement or recommendation from us. We’re happy to provide you with the tools you need to make better decisions, and we encourage you to make your own decisions and compare and assess products based on your individual needs, preferences and circumstances.

How do credit card rewards programs work?

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.

• What is an “eligible transaction”?

  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.

How can I use my credit card rewards?

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:

• Account login. You must log in to your credit card account or rewards program account to make redemptions. Once you’re logged in, it’s usually a simple process of going to the “Rewards” section, then selecting “Use points” and following the prompts.
• Required points. Every reward option available for redemption has a specific point value (e.g. 12,000 points for a S$50 gift card). This means you need to have at least this amount of points in your account to redeem your chosen reward.
• Points-plus-pay. Some programs allow you to use a combination of points and money to redeem your chosen rewards. This gives you more flexibility if you haven’t earned enough points when you want to make redemptions.

Types of credit card rewards programs in Singapore

There are a variety of different rewards credit cards you can compare and choose based on the benefits you want.

• Credit card rewards programs
• Frequent flyer programs
• Cashback

How to compare reward credit cards in Singapore

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.

• Earning points

  • Points per dollar. The more points you earn per dollar spent, the greater the potential value. A good rule of thumb is to look for a card that offers at least 1 point per S$1 for most transactions.
  • Point expiry and caps. Some credit card reward points expire after a certain amount of time, and some accounts have a limit on how many points you can earn in a month or year.
  • Bonus point offers. Reward credit cards often have sign up deals that give you hundreds or thousands of bonus points. Usually these offers require you to spend a certain amount of money on the card in the first few months you have it. As these offers only last for a limited time, they should only be considered after you have a clear idea of the type of card you want so that you can get the most value out of the deal and the rewards card you choose.

• Redeeming points

  • Points values. To work out the value of your rewards, consider how many points it would take to redeem. For example, if you need 12,000 points to get a S$50 gift card and your credit card has an earn rate of 1 point per S$1 spent, you would have to spend S$12,000 make a redemption. Breaking down the rewards like this can help you determine whether it’s worth your time and money.
  • Credit cards with the best rewards. Rewards programs often partner with retailers and businesses to provide you with a wider range of redemption options. You may also have the opportunity to earn bonus points when you shop with partner stores. Choose a credit card rewards program that has partnerships with your favourite brands and products so you can take advantage of these options.
  • Redemption limitations. Some reward programs have blackout periods when you may not be able to make redemptions. Check the fine print for this information and consider the impact it could have on you.

• Rates and fees

  • Annual fees. Most rewards credit cards charge an annual fee. The value of the rewards you earn should be equal to or more than the annual fee of a credit card.
  • Foreign transaction fees. Most credit cards apply a charge for transactions made overseas or with an international retailer online, usually worth 2% to 3.5% of the total transaction. Make sure you consider this fee before choosing a card – especially for any rewards card that offers more points for foreign transactions. You can compare cards with no foreign transaction fees with this guide.
  • Purchase rates. Rewards credit cards often have high standard interest rates. If you think you’ll carry a balance, consider how much interest your purchases will accrue and whether the rewards will outweigh the cost of your repayments.
  • Balance transfer rates. Some balance transfer credit cards also come with rewards. These cards allow you to move an existing debt to the new card and pay a low introductory interest rate on the balance. Usually, you won’t earn points for the balance that you transfer, and any new purchases will be charged interest at the purchase rate from the time the transaction is made. If you have credit card debt, it may be better to focus on paying it off completely before considering a rewards card.
  • Cash advance rate. If you use a rewards credit card for a cash advance transaction, such as getting money from an ATM, you will be charged interest at the cash advance rate, which could be as high as 22% p.a. Cash advances usually don’t earn reward points either.
  • Other fees. Rewards credit cards may come with a range of other fees, such as late payment and overlimit charges. Make sure you check these costs and factor them into your comparison so that you can choose a card that is affordable for you.

• Complimentary extras

  Rewards credit cards often come with a variety of additional features that can add value to the account you choose. Popular perks include:

  • International travel insurance
  • Airport lounge access
  • Complimentary flights
  • Hotel stays

  • Purchase protection insurance
  • Extended warranty coverage
  • Price match guarantees
  • Concierge services

Will a rewards credit card work for me?

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.

Frequently asked questions

• How can I view and manage my points?

  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.

• I've redeemed a reward with my points, but I've changed my mind. Can I refund my points?

  This will depend on the credit card, but generally, you can’t refund rewards or points once the transaction has been made.

• What's the difference between a tiered reward and a fixed reward?

  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.

• What credit cards have the best rewards in Singapore?

  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.

• Which is better, cashback or rewards points?

  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.

• Can I convert my points to frequent flyer points or rewards with another bank or program?

  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.

• How many points will I need for a particular item or flight?

  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.

• How do I know which rewards program or rewards credit card is for me?

  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.