What do you mean by Reward Credit Cards in Singapore?
Credit cards have come a long way since their inception. From offering the simple advantage of allowing cardholders to purchase items without the need for physical cash, credit cards nowadays have been tailored to appeal to various consumer segments. In this regard, one of the biggest advantages a credit card can offer is rewards for expenses charged to the card. These rewards can range from actual reward points that can be accumulated and redeemed for a wide variety of gifts to cashback, wherein a small percentage of the money spent using the card is credited back to the cardholder’s account to frequent flyer miles which can be accrued and redeemed for discounted airfare or upgrading existing flight tickets.
Choosing a credit card in Singapore that offers rewards can be quite a confusing task. Firstly, a cardholder should ensure the card actually provides a reward that will be beneficial to them. There’s no point in settling for a travel card giving miles if you barely use it for travel and no point in a reward point card for a frequent traveller. Below are the pros and cons of each type of benefit that would help cardholders choose the right type of rewards card.
Cashback credit cards in Singapore
These credit cards offer a small percentage of he spend charged to the card back to the cardholder and are among the more popular choice of credit cards as they help boost the cardholder’s savings. The cashback earned is directly credited to the cardholder’s account and different credit cards provide different cashback rates the Citibank Cashback Card offers a high rate of 8% cashback on petrol, groceries and dining expenses but a lower rate on other cards.
The cons about cashback cards are that they usually require a minimum spend criteria. Cardholders should spend a certain amount on their card to receive the cashback and even then, most cards have a cap on cashback earned.
Check out all Cashback credit cards in Singaporehttps://www.bankbazaar.sg/credit-card/cashback-credit-cards.html
Reward points credit cards in Singapore
Many credit cards such as the DBS Live Fresh credit card and the Citibank rewards credit card earn reward points on expenses charged to the card. The rate at which these points are earned varies. The points earned can be accrued and redeemed for a variety of gifts that include electronic gadgets, store vouchers and even cashback. The cards also earn reward points at a higher rate when used overseas.
The cons of the reward cards is that it earns points at a slower rate, sometimes the points earned have an expiry period post which the points left unredeemed become worthless. The rate of conversion is also quite high this means a cardholder would require a large number of points to redeem a gift.
Check out Credit cards that offers best rewards points in Singaporehttps://www.bankbazaar.sg/credit-card/rewards-credit-cards.html
Air Miles credit cards in Singapore
This type of credit card provides miles for every expense charged to the card. These miles can be redeemed at participating frequent flyer programs and can be used for upgrading or purchasing tickets and making hotel reservations. A prime example of an Air Mile card is the Citi PremierMiles Visa Card. another added bonus of these credit cards is that they provide attractive welcome gifts which involve gifting thousands of miles upon card approval and charging a certain amount to the card. The card also earns more miles when used overseas.
The cons of this card are very similar to reward points credit cards. They accrue at a slower rate, have a low rate of conversion and sometimes have an expiry date. Most cards charge a fee around the S$40 range for conversion of Air Miles and conversions are only carried out in blocks of 5000 miles.
Check out travel credit cards that are best for air miles in Singaporehttps://www.bankbazaar.sg/credit-card/travel-credit-cards.html
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