Every credit card issuer encourages its customers to use their card for various purchases. To entice continued use, it provides customers with various benefits in the form of rewards which can be used to redeem vouchers, gifts, cashback and rebate. In simple words, it is an incentive programme for customers.
Although earning cash rebates on your card can be very intriguing, you must know how to maximize your rebates. For instance, to earn cash rebates you will have a minimum spend criteria which means unless you spend a particular amount on your credit card, you will not be eligible to earn cash rebates on any purchases. There is also a cap that will be placed on the cash rebates that you can earn on your credit card, meaning once you have earned the maximum cash rebate offered on your card, your future purchases will not earn any more rebates. Knowing this limit can help you switch to another card once you reach the maximum cash rebate limit on your existing one and continue earning rebates.
Not all purchases made on your credit card will fetch you cash rebates. Certain credit cards specifically offer cash rebates only on select outlets and on select purchases. Additionally, most credit cards will not offer any cash rebates when you use your card to pay your annual fees and other fees and charges associated with your card. You need to know which establishments and purchases qualify for the maximum rebates on your card and use your card specifically for those purchases in order to reap the benefits on your cash rebate credit card.
Some credit cards offer introductory cashback on your first few purchases or more cash rebates on the initial few transactions. These offers typically last for a specific period of time. You must not confuse them with the actual rebates offered on your credit card. This may cause you to overspend on your card in the hopes of making half of your money back through cash rebates and cashback when in reality the promotion or introductory offer has elapsed and you had no clue about it. Therefore, you must always check the runtime on these offers so you know exactly on which/how many transactions and until when you are eligible for the credit card promotion and use your card accordingly.
If you simply choose a card that offers you cash rebates on everything, although all your purchases may fetch you rebates, they will be significantly lower than cards that offer rebates on specific purchases and categories. For instance, if you will use your credit card mainly for shopping, then choose a card that offers maximum rebates on shopping (retail and/or online shopping) so you can earn more rebates.
Here are the top credit cards in Singapore that offer you the best cash rebates on purchases. The exclusive cash rebates offered is listed below for each card.
Citibank offers one of the best cash rebate cards with excellent privileges and discounts.
The UOB One card comes with unbelievable cash rebates and fuel offers for Singaporeans.
The Quarterly Cash Rebates Programme from HSBC offers you exceptional rewards on dining, fuel and grocery shopping across Singapore.
The OCBC FRANK Credit Card is the best card for making online purchases and offers yearlong cash rebates to customers.
A rebate is also a kind of cashback, where, you get back a percentage of the money you spend on certain purchases, as deemed eligible by the credit card issuer.
However, unlike cashback, you will not be able to cash the amount. The percentage of purchase that you get can be used to offset other purchases. This could be a very important tool for planning your monthly budget.
Suppose your card offers the following terms for cash rebate:
Let us look at an illustration in the table below to understand how it works out for you in a month:
|Category||Amount spent in a month||Rebate|
|Weekday dining & entertainment||S$500||S$15|
|Paying for travel with the card||S$700||S$21|
For a total spend of S$1,600, you get a rebate of S$48. In case your total spend for a month was less than S$600, you will have to be content with a rebate of 0.3% on all spends.
There could be various promotions offered by banks from time to time which might offer higher rebates for a specific time-period. Understanding how rebates work will help you choose the best card to serve your purpose.