Benefits of Cashback Cards | Why Should You Get Cashback Credit Cards in Singapore

Credit Cards

Read this blog to know why a getting cashback credit card in Singapore is a good idea. We tell you the benefits of cashback cards in Singapore. 

Benefits of Cashback Cards in Singapore

There is no minimum spend and no cashback cap

As a young adult just starting out in the workforce, you don’t want to be overwhelmed by budgeting. There should be few complications, with spending made convenient, simple, and painless. This explains why a cashback card with unlimited cashback fits the bill. Normally, you’d have to spend the minimum monthly amount on the card to qualify for cashback. However, no minimum spend or cashback cap is required for unlimited cashback cards. This means that cardholders can earn cashback with every purchase without having to worry about meeting a monthly qualifying amount.

Increased cashback eligibility across all categories

It’s also common knowledge that unlimited cashback cards have greater eligibility across multiple spending categories. Credit cards typically have different mechanics emphasis because each card is designed to meet different consumer demands and preferences. Some cards are marketed as grocery or everyday-use cards, whereas others are geared toward dining and online shopping.

These cards will have their own category eligibility and exclusions based on their intended use. The Merchant Category Code of an institution or company determines how category eligibility works in credit cards (MCC). The criteria for what is and isn’t eligible are set by the individual banks.

Even e-wallet top-ups, insurance premiums, and bills are eligible

The UOB Absolute Cashback and AMEX True Cashback cards, for example, are true champions of ‘limitless’ spending. While other cards may not consider quasi-cash or quasi-financial services as eligible spending (for cashback, miles, or points), these two cards do. These cards offer cashback on purchases such as e-wallet top-ups, insurance premiums, utility bills, school fees, and more. UOB Absolute Cashback currently offers the highest rebate of 1.7% cashback among unlimited cashback cards, while AMEX True Cashback offers a lower rate of 1.5% cashback.

Excellent for large-ticket purchases

When it comes to unlimited cashback, using such cards to fund large-ticket purchases is also a good idea. Why? Because if you bought a car with a regular cashback card, you’d likely blow through the rebate cap on a purchase of more than S$100,000 right away.

The same access to bank promotions (as other credit cards)

All credit cards provide cardholders with access to a library of exclusive offers and promotions provided by the issuing bank. Why waste your budget by forcing yourself to increase expenses unnecessarily unless you easily meet the card’s minimum spend? You’ll be able to spend freely with an unlimited cashback card while also taking advantage of bank-specific discounts and rewards.

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