The ST Guide To... Choosing the right credit card

The ST Guide to choosing the right credit card

For air travellers, they need to spend more than $8,000 a year on travel needs, or redeem miles for business-class tickets and long-haul flights, to make their air miles cards pay off, said ValuePenguin analyst Duckju Kang.
For air travellers, they need to spend more than $8,000 a year on travel needs, or redeem miles for business-class tickets and long-haul flights, to make their air miles cards pay off, said ValuePenguin analyst Duckju Kang.PHOTO: ST FILE, SEAH KWANG PENG
At FairPrice supermarkets, OCBC Plus! Visa cardholders can get rebates of up to 12 per cent.
At FairPrice supermarkets, OCBC Plus! Visa cardholders can get rebates of up to 12 per cent.PHOTO: ST FILE, SEAH KWANG PENG

Many cards are geared towards different types of spending or rewards like rebates and air miles

Picking the right credit cards for your needs can be a confusing affair. There is a dizzying array to choose from, and each card promises some perk or other.

Before signing up for the next card that promises you a flashy lifestyle, it pays to first think about your own needs and what you want from a card.

This guide is not a comprehensive summary. There are plenty more cards on the market. Each touts some unique perk, but there are also finer points you should take note of, such as annual fees and minimum spending.

It can be a headache to decide which cards should go into your wallet. But, thankfully, there are comparison sites that can help.

Sites such as SingSaver, ValuePenguin and have curated lists of the best cards for certain needs, and they can also do side-by-side comparisons of particular cards so that you can pick the best one for your budget and lifestyle.


Are you looking to accumulate air miles to offset the cost of future flights, or are you looking for a quick cashback on your purchases?

ValuePenguin analyst Duckju Kang noted in a recent report that Singaporeans are avid travellers, so accumulating air miles may make sense. But he also said that for an air miles credit card to really pay off, a consumer has to do either of the following: spend more than $8,000 a year on his travel needs, or redeem miles for business-class and long-haul tickets only.

For the average Singaporean household, he said, travel spending represents only about 3 per cent of its expenditure, "compared with 16 per cent for dining, 9 per cent for groceries, and 17 per cent for transportation".

Of course, if you do spend a lot on travelling and plan to continue doing so, a miles card is a no-brainer.

Mr Kang notes: "A mile (earned on a credit card) can be worth two to four times more if you redeem it for long-haul flights or business-class tickets, which could increase the value of an air miles card significantly, compared with that of a cashback card."


Among the best cashback cards in the market are Standard Chartered's Unlimited Cashback Card, which offers 1.5 per cent cashback on your spending, with no cap.

There is also the POSB Everyday Card, providing up to 20 per cent of cashback on petrol, 5 per cent on groceries, 9 to 14 per cent on dining and 3 per cent off on cosmetics and pharmaceuticals at Watsons, with a minimum spending requirement of $700 a month. recommends the UOB One Card, which lets you earn up to 5 per cent cashback on all your purchases if you spend at least $2,000 a month for three months in a row (on at least three purchases a month).

If you spend at least $1,000 (but less than $2,000) a month (for three months in a row and on at least three purchases a month), you will earn a total of $100 cashback for those three months, which is equivalent to 3.33 per cent.

ValuePenguin also recommends the Maybank Platinum Visa Card. It charges no annual fee and does not impose any minimum spending requirements.

If you spend between $300 and $1,000 a month, you can earn up to 3.33 per cent in cash rebates.

Though it caps its total rebate at $100 a quarter, or $400 a year, it is still one of the highest-yielding cashback cards in the market for modest spenders with a monthly budget of around $1,000 or less.


A good general spending card for miles is the Citi PremierMiles Visa Card. It has a simple enough concept - you earn 1.2 miles for every dollar you spend in Singapore and two miles for every dollar spent overseas (in a foreign currency).

There is an annual fee of $192.60, but you get 10,000 miles in return.

The DBS Altitude Card has the exact same miles-per-dollar rate, but it waives its annual fee of $192.60 for those who spend more than $2,000 a month or $25,000 a year. It also offers three miles for every dollar spent on online travel bookings.

Another good travel card, especially for more affluent spenders, is the UOB PRVI Miles American Express Card, which offers 1.4 miles per dollar spent locally and 2.4 miles per S$1 spent overseas.

It offers a bonus of 20,000 loyalty miles every year with at least $50,000 of spending on the card.


Some cards offer better cashback rates or more air miles for certain types of spending, so it pays to study your spending patterns before diving in.

It does not have to be an in-depth investigation. Just ask yourself: Do you spend a lot on groceries? Do you often go to department stores? Do you spend a lot online? Roughly mapping out how you spend your money can help you figure out which cards to get, because certain cards offer especially good perks when you spend at certain merchants.

For example, the OCBC Plus! Visa Card is a good one for people who buy groceries frequently - it offers rebates of up to 12 per cent at FairPrice supermarkets, which you can redeem at the cashier when making a purchase.

If you plan to use your card mostly on shopping instead, you could consider the Citi Rewards Visa Card, which gives you four air miles for every dollar spent on shopping - clothes, shoes and bags or anything bought at a department store - whether online or offline.

If you spend a lot online, and not just on clothes, shoes and bags, there is the DBS Woman's Card, which offers four miles per dollar spent online, including for items such as flight and movie tickets.

The HSBC Revolution Card is a miles card that offers two miles per dollar on online spending (shopping and travel bookings), dining and entertainment.

HSBC Revolution is also a very cheap card to use: Its annual fee of $160.50 is waived for the first two years, and subsequently waived for those who maintain an annual expenditure of just $12,500 on it.


Even more than travel, Singaporeans love to indulge in food, and there is a plethora of credit cards that targets foodies.

One of the best in the market is the Citi Cash Back Card, which offers 8 per cent rebates on dining, including food deliveries via Foodpanda.

Another is the CIMB Visa Signature Card, which provides 10 per cent cashback on dining expenses, though this is capped at $60 a month and requires a monthly spend of $500 and at least eight monthly transactions worth $30 each.

The UOB YOLO Card, targeted at millennials but with no age limit for applicants, offers up to 8 per cent rebates on dining and entertainment, up to a $60 cap, as well as complimentary nightlife perks such as one-for-one drink specials and priority queue at the best clubs here.

The American Express Platinum Card, targeted at wealthy individuals, offers up to 50 per cent off your dining bill at certain restaurants, as well as exclusive privileges and invitations to Michelin-starred guest chef dinners.

Even if you don't have a card that specialises in offering dining rebates, you could still enjoy dining perks as banks tend to tie up with restaurants to offer discounts for all their cardholders.

For example, Citibank has a programme in which every month, an award-winning overseas chef will collaborate with a top Singapore- based restaurant to create a one- time bespoke menu. Citibank cardmembers get to enjoy these meals at a special discounted price.

A version of this article appeared in the print edition of The Straits Times on August 26, 2017, with the headline 'Study your needs before picking a card'. Print Edition | Subscribe