As a long-time credit card user and savvy spender, having the knack to earn and maximise all the rewards that come with this little piece of plastic are part of your muscle memory.
We all know how cashback works — when you charge eligible spend to your credit card, you get some money credited back into your balance or linked bank account. The same goes for rewards – your spend is transformed into rewards points that come in the form of discounts, redemption of gifts, and the list goes on.
Simply put, the possibilities are endless. If you’re new to the credit card scene or simply looking out for the best reward options, here are some of our top tips to get the best out of your credit card expenditure.
1. Diversity is key
At the end of the day, it is important to know what kind of reward each card offers.
Spreading your expenditure across various credit cards ensures you get the best bang for your buck. For example, if you’re looking to chalk up miles – save the big ticket items for a miles card, if you’re huge on dining or online shopping – look for cashback cards with the best rebates. If you have a family and groceries or petrol take up a significant chunk of your expenditure, get a card that rewards you for everyday purchases and discounts at petrol stations.
It helps to map out your monthly expenditure, and see where most of your spends are concentrated on before applying for suitable credit cards. Trust us, it’ll pay off when you’re enjoying that business class seat on your next 15-hour plane ride to Europe!
2. Offer to pay first
At the end of the day, we know that banks reward big spenders. If you’re looking to maximise rewards, it’s better to rake in the big-ticket transactions first. Out for dinner with a group of friends? Guess it won’t hurt to foot the bill first (just make sure they pay you back!).
3. Add a supplementary card holder to your existing credit card
For those of you with spouses and family members, perhaps consider adding them as supplementary card holders (instead of applying for another credit card altogether). This way their transactions can also be stacked or counted as part of the overall expenditure! I don’t know about you but that definitely sounds like a win-win situation to me. The bank’s happy, you are happy, everyone wins!
Sign up for rewards or loyalty programmes
Apart from optimising your spend habits, joining a rewards or loyalty programme enables you to stack rewards on top of each other – for example earning additional cashback on top of your existing purchases.
Apps like Shopee and Grab have their virtual currency in the form of coins or points you accumulate – to ultimately gain some sort of reward i.e. cashback, or discount off your next purchase. All this is only made possible when you continue to SPEND MORE. Other hot favourites like Shopback and Fave reel you in with the idea of cashback or discounted deals on your favourite merchants.
Who doesn’t love to be rewarded for spending? We know we do!
For those who follow us, you may or may not have been introduced to our MoneySmart Plus membership programme as well! Those who join us as Plus members get to enjoy cashback on their purchases in 2 main ways:
- MoneySmart Store: When you make a purchase from the MoneySmart store
- Everyday Rewards: When you switch your monthly subscription payments to a participating credit card provider
You’d be able to withdraw cashback BACK into your bank account, not in any form of currency or discount or offers – just pure cash! Plus, it’s entirely FREE to sign up as a MoneySmart Plus member.
The good thing is that Plus members are rewarded for single-ticket purchases OR recurring subscription payments. Imagine earning cashback when you pay for an Apple Watch, or a monthly Netflix subscription, which you can then withdraw back into your bank account!
In short, there are TONS of options for you to consider. Map out your expenses before deciding what works best for you. Remember, there is no perfect way to go about doing this.
Bottom line is: if you’re going to spend anyway, you might as well get rewarded for it, right?
Additionally, check out our upcoming Payday Flash Sale happening from 26 Sep to 3 Oct, where MoneySmart Plus members enjoy up to 50% cashback on their favourite brands like Apple, Nintendo, PRISM, Razer and much more. Join hundreds of other Plus members who are already earning cashback today!