Which flat rate cash back card should you get?
I got credit cards once my salary allowed me to (which I don’t recommend because you sort of miss out on the first-timer promos if you have nothing much to spend on), so I’m here to share some experience. I did my fair share of research using finance websites such as moneysmart, singsaver etc, and this is my very own simplified version; finance websites are very complete and thorough, but sometimes because they compare just too many cards, it gets a bit difficult to finally make the decision...(But I do recommend you read them too because they are still really useful.)
So here comes the disclaimer: I am NOT a financial advisor. I just want to share my experience and help others avoid the mistakes I did.
Actually the aim is to get EVERY card that suits your lifestyle, not just one or two. But when you get those cards, try to get the welcome gifts as well. Because once you sign up for one bank’s card, you won’t be able to get the welcome gift for a different card from the same bank. Sometimes they still give you a welcome gift though, just that it’s much lower than if you were a first-timer...
Anyway, let’s get into the main topic. (I am really too long-winded...) I’d say flat rate cash back cards are usually for people who:
1. Don’t spend consistently. Because these cards don’t have a minimum spending requirement. You can spend $0 in one month and it doesn’t matter.
2. Don’t spend a lot. Same reason as for point 1.
3. Spend on bills and stamps (instead of groceries or shopping- though you still can use these cards for these categories if you haven’t gotten any other credit cards...) Because if you mainly spend on groceries and online shopping, there are other cards better for these categories.
Flat rate cards usually give 1.5% cash back across ALL categories. Citibank has one that gives 1.6%, but I don’t recommend it because you can’t even get cash back for bills (yes, exclusions. You can’t even get cash back for top ups...)
I currently have 4 flat rate cash back cards, so my review will only be revolving these 4:
1. Amex True Cash Back
2. Standard Chartered Unlimited Cash Back
3. HSBC Advance Cash Back
4. Citi Cash Back +
My favourite would have to be Standard Chartered’s Unlimited Cash Back for the following reasons:
1. Easiest welcome gift to get. The gift is usually about $150-200 cash back credited to your credit card account. For me, I went on one of the finance websites (Singsaver or Moneysmart) and applied through them. That way you get even more than just applying directly from Standard Chartered’s website. The welcome gift amount differs with each period though, but just make sure when you apply, GET THE WELCOME GIFT because there is usually NO MINIMUM SPEND. You literally just apply, and they give you the gift after about 2 or 3 months of holding the card. The other cards usually require you to spend some amount before rewarding you. If you can’t find the welcome gift online, you can also get someone’s referral code, or use mine:
2. Fewest exclusions. Both the Amex True Cash Back and Standard Chartered Unlimited Cash Back cards have minimal exclusions. But not every merchant accepts Amex and also because of reason 1. I feel the latter is still better. Oh yes, Amex’s welcome gift comes in CapitaLand mall vouchers which are less flexible + you need to go to the mall to queue up and collect it. Anyway, you really don’t have to worry about what category you are paying for. Just use the card and you get 1.5% back. (Just don’t use it to pay for education-related/ school fees or income tax. All credit cards don’t give you cash back for these categories. If you want, you can use your credit card with CARDUP but there is a fee which isn’t worth it...)
*NEWEST UPDATE*: SC unlimited cashback card no longer awards cashback for ez-link top ups😞 But still does so for direct transit link transactions (meaning you should tap in and out of public transport using ur sc card.)
3. 2 year annual fee waiver. My second fav flat cash back card, the Amex one, has a 1 year waiver. This is a small reason though, because if you do spend on your card, you can easily request for fee waivers in subsequent years. And if they somehow don’t grant it, just cancel the card.
So these are the 3 main reasons why I think everyone with a salary just entering adulthood should choose the Standard Chartered Unlimited Cash Back Card over the other flat rate cash back cards. However in order to make full use of the credit card welcome gifts on the market, every time you need to make a big purchase (e.g buying furniture/ house reno), you should hunt for a new card because you can easily hit the minimum spend required to get the welcome gift.
Leave a comment if you’ve any questions or if you’d like to share your own experiences with me! I’m always hungry to know more about credit cards- it’s part of why I love adulting so much haha.
TTFN~
Update: Standard Chartered Unlimited Cashback card does not give any rebates for grabpay top-ups.
Comments
Post a Comment