Compare the Best Credit Card Promotions in Singapore with Great Perks
If there is one thing Singaporeans learned during COVID-19, it’s this: Cashless payments are here to stay.
With contactless and cashless payment methods on the rise, credit cards have become a must-have.
For the longest time, credit cards were notorious for encouraging overspending. Thankfully, many people have now realised that this can be an amazing tool to help them manage finances and enjoy savings.
However, the benefits you can gain from having a credit card in Singapore heavily rely on choosing the right one. To help you maximise your finances, we’ve gathered the best credit card promotions today.
Here at OMY Singapore, you will discover the following:
- How do Credit Cards Work?
- Types of Credit Cards
- Best Credit Card Promotions in Singapore
- What You Need to Know About Credit Card Fees
- What is The Difference between Visa, Mastercard, and Amex?
- Pros and Cons of Credit Cards
- How to Choose the Best Credit Card?
- What is the minimum balance payment on credit cards?
- Frequently Asked Questions
How do Credit Cards Work?
Before you know the best credit card promotions in Singapore today, you first need to know how credit cards work.
Credit Cards are a convenient, easy, and quick way to pay for your purchases. With the swipe of a card, you can purchase anything from groceries to big-ticket items like a laptop or a car.
But how do you pay for these purchases?
Your credit card allows you to borrow money from banks and other financial institutions. You can also use your credit card to take care of purchases before you have the money to pay for them yourself.
From here, you can pay off your purchase in monthly instalments or through a one-time payment.
Types of Credit Cards
There are several types of credit card categories for you to choose from, and each credit card category is designed for a different purpose. Here are the different types of credit cards you should know.
Rewards credit cards
A reward credit card allows you to earn points from your purchases. These rewards are usually based on a percentage of how much you spend in different categories such as dining, petrol, or groceries.
Rewards credit cards offer various ways to redeem your points. Usually, this involves merchandise, or gift cards. This makes it an amazing option for people who want to use their credit cards to cover daily expenses such as dining and groceries.
Cashback credit cards
Through this type of credit card, you can earn cashback or credits in your spending, although the amount usually varies depending on which institution you got your card from. Many cashback cards in Singapore offer a flat rate, while there are also those that give bonus cashback rewards for specific categories.
Travel credit cards/Miles credit cards
These cards earn you frequent flyer miles which can be used to purchase flights or other travel-related products. This is a great option for frequent travellers who are looking to save money on their travel expenses.
Best Credit Card Promotions in Singapore
Here are the best credit card promotions in Singapore you should consider. Compare the best credit card promotions and find the best deals.
| Credit card | Promos | Best for |
|---|---|---|
| Citi Bank Cash Back Credit Card |
|
Best for petrol savings |
| KrisFlyer UOB Credit Card |
|
Best for travelling |
| HSBC Visa Platinum Credit Card |
|
Best for family use |
| American Express True Cashback Credit Card |
|
Best for international use |
| POSB Everyday Card |
|
Best for everyday use |
Citi Bank Cash Back Credit Card
With 6% cashback for dining and 8% for groceries, you’ll save so much money thanks to the Citi Bank Cash Back Card. This fuss-free credit card allows you to save a whopping 20.88% if you get your petrol at Esso or Shell.
Read: 6 Best Petrol Credit Cards in Singapore
This card also has a standout credit card promotion of S$300 cashback for S$800 spend in the first two months. This credit card promotion is valid until 30 June 2022. Other perks of this card include:
- 25% off a la carte food bill at Lawry’s The Prime Rib Singapore (Valid until 20 December 2022)
- S$10 return voucher for Taste Parade (Valid until 31 December 2022)
- S$5 Return voucher for Akimitsu (valid until 31 December 2022)
Interested in this credit card promotion from Citi Bank Cash Back Card? Apply here.
KrisFlyer UOB Credit Card
If you’re looking for the best credit card promotion in Singapore that can help you save on travels, the KrisFlyer UOB Credit Card is an awesome choice. Through this card, you can unlock KrisFlyer miles, as well as exclusive perks. New applicants can get S$250 Grab vouchers, as well as 3,000 KrisFlyer miles.
Want to earn Krisflyer miles with the KrisFlyer UOB Credit Card promotion? Apply here.
HSBC Visa Platinum Credit Card
This credit card is meant not only for you but for your entire family. With its latest credit card promotion, you can receive S$200 cashback when you spend on your card and get up to S$150 cashback when you apply for supplementary cards for your family members.
This HSBC Visa Platinum Credit Card promotion only runs until 31 July 2022. Apply here.
American Express True Cashback
If you want to go with an American Express card, try the American Express True Cashback.
This best card credit promotion offers a 3% cashback (up to S$150) welcome bonus if you spend S$5,000 in your first 6 months. New members can also receive S$80 CapitaVouchers when they spend a minimum of S$250 in the first months. This promo is only valid until 30 June 2022. Apply here.
POSB Everyday Card
If your priority is to get cash rebates, another option you should consider is the POSB Everyday credit card promotion. When you apply for this card, you can get up to S$150 cashback, with a minimum spend of S$800 within the first 60 days from the card’s approval date. This promo runs until 30 June 2022.
This is another credit card promotion in Singapore that you should not miss. Apply here.
What You Need to Know About Credit Card Fees
When you have a credit card, there are certain fees that you need to watch out for.
Annual Fees
An annual fee is an expense that you need to pay for the privilege of owning a credit card. Some credit cards can charge you an annual fee even if you don’t make any purchases or meet any spending threshold. All credit card promotions mentioned above offer a waived annual fee for the first one or two years.
Foreign Currency Conversion Fees
If you make purchases from overseas merchants, foreign currency conversion fees will apply. This fee is implemented on top of the exchange rate that you are charged when you are converting your local currency to the other country’s currency.
Late Payment Fees
The worst possible way to start your credit card experience is by missing your payments. If you missed your payments, a late fee will be charged to your account, and this will have an impact on your credit score.
Cash advance fees
A cash advance fee is applied to your transactions when you use your credit card to withdraw cash.
Cash withdrawal fees
If you make cash withdrawals through ATMs overseas, you need to pay cash withdrawal fees.
What is The Difference between Visa, Mastercard, and Amex?
The three major credit card companies that you will come across when choosing which credit card, you want to apply to are Mastercard, Visa, and Amex.
For those who are new to credit cards, the differences between these three credit card companies might be a little confusing.
The best way to look at Mastercard, Visa, and Amex is to view them as intermediaries which connect merchants with banks.
Mastercard and Visa process your transactions when you pay using your card. However, they do not forward the credit you are using. On the other hand, American Express takes the role of both the intermediary and credit card issuer. Take a look at these tables to help you choose which card is the best one for you.
| Best for | Recommended card to use |
|---|---|
| Worldwide acceptance | Visa/Mastercard |
| Foreign exchange and transaction fees | Mastercard |
| Overseas customer service | AmEx |
| Visa | MasterCard | American Express | |
|---|---|---|---|
| Processor | Yes | Yes | Yes |
| Issuer | No | No | Yes |
| No. of countries supported | 200 | 210 | 160 |
| Banks | CIMB, CitiBank, DBS, HSBC, MayBank, POSB, Standard Chartered, UOB | CIMB, CitiBank, DBS, HSBC, MayBank, POSB, Standard Chartered, UOB | American Express, Citibank, DBS, HSBC, POSB |
Pros and Cons of Credit Cards in Singapore
Credit cards are an amazing financial tool that gives you many options to choose from. However, there are also disadvantages that come with having a credit card. We’ve gathered the advantages and disadvantages of credit cards below.
Pros
Easy access to credit
Credit cards provide you with easy access to credit. All you have to do is swipe your card to pay for your purchases.
Low introductory rates
Credit cards usually offer a low introductory rate for new customers. If you are using your card for your daily purchases, some banks offer a 0% interest rate, as well as waived annual fees for the first year.
Great security features
Credit cards are designed with impressive security features that keep your card information safe. It has a security chip embedded that makes it extremely difficult to have your card information compromised.
Great rewards
Credit cards can give you perks and rewards that are based on how much you spend. Credit cards also offer exclusive programs and rewards.
Improve your credit score (long term)
By having a credit card and paying your monthly instalments, you are helping to improve your credit score. This is important for financial decisions you will make in the future.
Easy to track expenses
Credit cards enable you to keep track of your expenses, giving you a more accurate idea of where your money is going.
Cons
High interest rate
Credit card interest rates can be very high, which is why it’s important to pay your monthly instalments on time. If you are unable to pay, you will start incurring interest, which can make it more difficult to handle your debts.
Rewards programs can be tricky
Since credit card companies offer so many rewards programs, it can be very difficult to decide which rewards program is best for you.
Credit limits can be restrictive
A credit limit will be given to you when you receive your credit card. This depends on your bank’s credit assessment of you. Many banks will not offer a high credit limit immediately, and you need to establish a good credit history before applying for a high limit credit card.
Hidden fees
The fees for credit cards might not be obvious to beginners. While relatively affordable, it could easily add up which can take a toll on people who are working with a tight budget.
Easy to overuse
Credit cards are easy to overuse, especially for people who have developed a habit of spending on credit. Therefore, it’s important to be mindful of your spending and make sure you track your expenses.
How to Choose the Best Credit Card?
There are many credit card promotions out there, and you need to consider what your needs are before you decide on which credit card to get. Here are some things you must do.
Check your credit
When you apply for a credit card, you need to have a good credit score to qualify for the best credit cards.
Assess which type of credit card you need
To find the best credit card for you, you need to consider what your own spending needs are. For example, if you don’t plan on travelling much, applying for a credit card promotion that rewards you with air miles would not be practical.
Compare different options
Once you know what your needs are, you can compare different options to find the best credit card for you. Try to look at each offer side by side because different credit card companies offer different rewards, fees, schemes, and perks. Most importantly, they have various credit card promotions each month, so better to look for the fine print carefully.
What is the minimum balance payment on credit cards?
You might have heard of the term “minimum balance payment” when it comes to credit cards, but what does this entail?
The minimum balance payment is the minimum amount of money that you need to pay towards your credit card balance each month. If you don’t meet the required minimum payment, you will be charged a fee. Most credit cards in Singapore require a minimum balance payment of S$50.
Frequently Asked Questions
Here are some commonly asked questions about credit cards.
What is the difference between debit and credit cards?
Credit cards work like a loan, where you can spend money that you don’t have yet. A debit card, on the other hand, works like a real account. When you make a payment, the money is immediately deducted from your account, and you will not be able to spend more than the amount you have.
What’s the difference between a credit card and a prepaid card?
A credit card allows you to spend now and pay later. Prepaid cards don’t allow you to spend more than the amount you have loaded on your card.
How long does it take to get a credit card?
It will take some time to get approved for a credit card. It could take anywhere from a few days to a few weeks.
Can I use my credit card abroad?
Yes, you can use your credit card outside Singapore. However, you need to check with the credit card company to see if there are any additional fees imposed.
What is the most common problem experienced by cardholders?
Credit cards can be a tough financial tool to manage, especially for beginners. The most common problem with credit cards is when people spend more than what they can afford.
How to avoid credit card fraud?
Credit cards are already secure, but you can still take measures to protect yourself from credit card fraud. First, remember to store your card in a secure location. Immediately return it to that place after using it.
Aside from that, do not allow websites to “remember” your card details, especially if they are not secure payment portals such as PayPal or GooglePay.
If you lose your card, report it immediately to your bank. Lastly, always check your monthly statement for suspicious activities.
What will happen if I pay the minimum due on a credit card?
When you only pay the minimum balance, you will incur an interest charge on the remaining amount.
Is my credit score affected if I cancel a credit card?
No. Just make sure to pay your balances before cancelling.
How do I increase my credit card limit?
The simplest way to do this is to request a credit card limit increase from your bank. To ensure your request is granted, you can boost your credit score, pay your credit card dues on time, and show proof of income increase.
What is the minimum salary to apply for a credit card in Singapore?
It varies depending on the credit card provider. But it is usually S$30,000 for locals and PRs, and S$45,000 for foreigners. For those who do not meet the income requirement, some banks allow fixed deposit collateral of S$10,000.
