Is Cashback Still King? 5 Reasons Why Unlimited Cashback Credit Cards Remain a Wallet Essential

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Image: ajr_images / iStock

Post-COVID, the travel bug in all of us is back with a vengeance. As the travel tidal wave continues to surge, air miles cards have been the talk of the town. That leaves us wondering: Is cashback still king? Or are miles cards dethroning cashback cards? 

Here’s what we think: An air miles card might see you through your next trip overseas, but it’s a solid cashback card that will truly stand the test of time. 

Cashback cards make the most of your purchases by giving you cash rewards for your spending, which can be used to offset your next credit card bill. They can be your best friend when it comes to fighting inflation, and unlimited cashback cards in particular are very handy for saving on big ticket purchases. One such limitless cashback card is the UOB Absolute Cashback Card, which currently offers the highest rates in the market with no spend exclusions—yup, even your insurance premiums and healthcare bills make the cut! 

Here are 5 reasons why we all need an unlimited cashback credit card in our wallets.

 

5 Reasons Why Unlimited Cashback Credit Cards Remain a Wallet Essential

  1. Unlimited cashback cards are pretty much a one-size-fits-all
  2. You can earn cashback on anything—no cap, no catch
  3. There’s honestly nothing simpler than receiving cashback
  4. An unlimited cashback card is a great foundation for your personal finance journey
  5. Count on it to help you through inflation

 

#1: Unlimited cashback cards are pretty much a one-size-fits-all 

Are you looking for your very first credit card? Or perhaps you’re trying to Marie Kondo your wallet and become a financial minimalist. Wherever you’re coming from, no matter what stage of life you’re at, an unlimited cashback card might just be your answer. 

Having unlimited cashback on a card makes it perfect for big ticket purchases—anything from renovating your home to copping that designer tote or raising a puppy. Unlike cashback credit cards that cap the amount of cashback you can earn each month, limitless cashback cards like the UOB Absolute Cashback Card give you as much cashback as your spending earns you. 

Here’s an idea of how much cashback you can get if you pay for your home improvements and furnishings using the UOB Absolute Cashback Card, which gives 1.7% cashback—the highest rate in the market right now. We’re assuming you have a new 4-room flat, and want to purchase the following:

Home improvement/furnishing  Cost Cashback earned with the UOB Absolute Cashback Card
OLED 4K 55-Inch Smart TV  $4,000 $68
Massage chair  $10,000 $170
3-seater full leather sofa  $4,000 $68
Bedframe (King) with bedside tables $2,000 $34
Double pocket spring mattress (King) $1,000 $17
Home theatre system  $2,000 $34
Ergonomic chair  $1,000 $17
Dining table and chairs set for 6-8 $3,000 $51
Total  $27,000 $459

 

#2: You can earn cashback on anything—no cap, no catch 

Many cashback credit cards come with 2 limiting factors that may hold you back from maximising your cashback: cashback caps and spend exclusions. 

Cashback caps are a monthly or quarterly limit to how much cashback you can earn. For example, if a credit card earns you 1.5% cashback up to $200 per month, you’ll only earn cashback on the first $13,333 you spend each month. Even if you spend $27,000 on home renovations like in the example above, the cashback you earn will still be capped at only $200. 

Many cashback credit cards also come with spend exclusions. These are spend categories that won’t earn you cashback, as decided by the credit card provider. Most of the time, these are things such as insurance premiums, school fees, and healthcare expenses. 

The ultimate unlimited cashback credit card has no cashback cap and no spend exclusions—your cashback is then truly limitless! With the UOB Absolute Cashback Card, you get unlimited cashback on any spend category. Having no spend exclusions means you don’t have to figure out the “game” to earn cashback. It’s just simple, fuss-free earning. 

 

#3: There’s honestly nothing simpler than receiving cashback 

Cashback is the easiest way to get rewarded for your credit card spending. While air miles cards can have high earn rates, there’s often a good deal of mental gymnastics involved to figure out which flight classes or destinations will earn you more miles, how to convert your rewards points to miles, and to track when these points expire. In short, miles have to be managed, and you need to have some smarts about you to make the most of them. 

With cashback credit cards, you don’t need to think. Especially on an unlimited cashback credit card with no spend exclusions, like the UOB Absolute Cashback Card, getting your cashback is straightforward and fuss-free. Just swipe your card to spend and earn—it’s as simple as that.

 

#4: An unlimited cashback card is a great foundation for your personal finance journey 

Did you know that cashback can be stacked? Now you do. Credit cards with no spend exclusions like the UOB Absolue Cashback Card rewards you for cashback on anything—even top-ups that by themselves already earn you cashback. 

Take GrabPay for example. Spending from your GrabPay Wallet can earn you up to 1.2% cashback (for Platinum members on Grab), and minimally at least 0.6% cashback (for regular and Silver members on Grab). If you use the UOB Absolute Cashback Card to top up your GrabPay Wallet, you’ll also earn 0.3% cashback on the amount you topped up. It is currently the only known credit card that offers this perk. 

While this isn’t as high as the cashback rate for other spend categories, the fact that you’re doubling up your cashback is a pretty uncommon bonus already. Not to mention the added convenience when making payments at places that only accept QR code payments, like the hawker centre. You’re pretty much getting cashback on your ba chor mee

 

#5: Count on it to help you through inflation 

Inflation hits us hard because the same thing you purchased in the past now costs more to purchase again. In other words, each dollar you worked hard to earn can now buy you less. 

Here’s where cashback cards can help to offset some of these rising costs. That office chair you bought last month? Or all those birthday celebrations you paid for? This month, your cashback credit card will return you a percentage of what you spent in the form of cashback. You can conceptualise it as your spending now giving you some money back in the future. That’ll help to cushion the blow that inflation deals you, thus maintaining some of your purchasing power. 

And that’s why we say unlimited cashback cards like the UOB Absolute Cashback Card are timeless, fuss-free, and remain a steadfast wallet essential. 

New to UOB? Don’t miss this promo! 

UOB logo
MoneySmart Exclusive
AMAZING APRIL PROMOTION
Cash Back on Eligible Spend
1.7%
Min. Spend per month
S$0
Cash Back Cap
Unlimited
MoneySmart Exclusive:

[Amazing April Promotion | CASH BONUS]
Stand a chance to get an Sony PlayStation®5 (SLIM) Disc Edition (worth S$799) when you apply through MoneySmart! The first 6 successful applicants who submit the claim form at 2pm or 9pm can also receive a S$88 Cash Bonus via PayNow! T&Cs apply.
 
PLUS enjoy 10% cashback (equivalent to S$100) on the first S$1,000 spend within thirty days and get S$350 Cash Credit from UOB when you successfully apply for an eligible UOB Credit Card and spend a min. of S$1,000 per month, for 2 consecutive months from the card approval date. T&Cs apply.

Valid until 21 Apr 2024

For new-to-UOB Credit Cardmembers who successfully apply for UOB Absolute Cashback Card by 31 August 2023, enjoy 10% cashback (equivalent to S$100) on the first S$1,000 spend within 30 days from card approval date. Good news, there is no cap on the number of eligible customers. 

If you move fast enough, you could also receive S$350 cash credit. To enjoy this welcome gift, you have to be among the first 200 new-to-UOB Credit Cardmembers who: 

  • Successfully apply for a selected UOB credit card by 31 August 2023 
  • Spend at least S$1,000 per month for 2 consecutive months from the card approval date

 

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This post was written in collaboration with UOB. While we are financially compensated by them, we nonetheless strive to maintain our editorial integrity and review products with the same objective lens. We are committed to providing the best information in order for you to make personal financial decisions with confidence. You can view our Editorial Guidelines here.