4 Ways to Use Credit Cards to Win at Life

credit card win

There’s nothing quite like getting your credit card statement and realising you got $50 free thanks to your card’s generous cashback policy. #Winning

If you’re smart and disciplined enough to pay your credit card bills on time and in full every month, and always call to get the annual fee waived, they can be deployed as tools to help save you lots of sweet, sweet money.

Here are four ways to use these little pieces of plastic to your advantage.

 

1. Sign up for cards whenever you see sweet sign-up bonuses

Banks really, really want you to sign up for their cards. Okay, they’re hoping that somewhere down the road you’ll start missing your credit card payments so they get to charge you interest and late payment fees, but you’re not going to let that happen.

Still, nothing’s stopping you from taking advantage of juicy sign-up bonuses banks dangle to entice you to register for their cards. Every once in a while, look through the websites of all the major banks to see if there are any good sign up bonuses on offer.

For instance, Citibank is offering a generous sign-up bonus of $120 to new cardmembers who don’t have another Citibank credit card and sign up for the Citi Cash Back card.

Citibank logo
MoneySmart Exclusive
Cashback on Dining, Groceries & Grab
Cash Back on Dining, Groceries & Petrol
8%
Cash Back Cap per category, per month
S$25
Min. Spend per month
S$888
MoneySmart Exclusive: <div>Get a <strong>Fitbit Versa 3</strong> OR <strong>Bose Portable Smart Speakers</strong> worth up to S$499 when you apply and spend on your card. T&amp;Cs apply</div> Valid till 31 Oct 2020.

 

2. Sign up for the right card before making a big purchase

When you have a big purchase looming on the horizon—a long-awaited overseas holiday, booking a hotel for your wedding dinner, buying an engagement ring, going for LASIK surgery and so on—look out for a card that can really maximise your spending.

For instance, you might want to sign up for the American Express Singapore Airlines KrisFlyer Ascend Credit Card, which offers up to 20,000 KrisFlyer Miles if you spend $6,000 on the card in the first 3 months. And if you’re spending an additional $4,000 in that same time period, you may be eligible for a Samsonite luggage.

American Express logo
Online Promo
Convenience & Perks for Frequent Flyers
Local Spend
S$1 = 1.2 Miles
Overseas Spend
S$1 = 2 Miles
Grab rides
S$1 = 3.2 Miles
Online Promo: <div><!--block-->Get <strong>S$150 Agoda Vouchers </strong>or <strong>S$150 CapitaVouchers</strong> when you apply and spend on your card!</div> Valid till 02 Nov 2020.

 

3. Find a card for every spending category

There is no reason to pay cash unless you can help it. Find a card for every spending category so you can maximise the amount of benefits you enjoy.

For instance, look for a card that gives you a generous cash rebate on online shopping, and use that whenever you make purchases on the Internet. The HSBC Revolution Card, which gives you 5X Rewards points for all online purchases. What’s more, it also gives you 5X Rewards points for dining and entertainment. So bring it along for your next KTV session.

HSBC logo
MoneySmart Exclusive
Earn Points for Everyday Spending
Rewards
S$1= 10 Points
Rewards
S$1= 4 Miles
Min. Spend
S$0
MoneySmart Exclusive: <div>Get a <strong>Google Nest Hub </strong>worth up to S$129 when you get your card approved. T&amp;Cs apply.</div> Valid till 31 Oct 2020.

Note that the minimum spending requirements will often dictate which cards you use. You’ll have to come up with a card allocation plan that maximises your rewards while working within the limits of your monthly spending.

 

4. Keep track of the various credit card benefits

Let’s be honest here. You practically need a PhD to keep track of the various credit card benefits, as they’re changing all the time.

One day you’ve signed up for a card that promises to give you a great cashback rate on everything you could possibly spend on. Six months later, the bank has changed the entire programme and slapped on a $1,000 minimum spending requirement. Now, the only thing the card is good for is as a coaster.

To ensure you never get left hanging at the cashier counter again, fumbling through your wallet and wondering which card you should use, you can head to the MoneySmart Credit Cards wizard for easy reference. Make sure you maximise your benefits each and every time.

What’s your favourite credit card? Share your recommendations in the comments!