Avoid taking a credit card based on a cool advertisement or a pretty envelope. Instead consider the entire card, past introductory bonus offers and celebrity endorsements. You should take time and do some more research. Read up the fine print regarding the packages and benefits and ensure you fully understand how these reward programs work.
Since you are considering maximizing your card usage indicates you understand the gains of paying using credit cards than cash. It is very different to people who only consider a good card as one which allows them to use the most cash amount now.
Even with the huge information on credit cards available online, many borrowers, still, have challenges in determining the ideal credit cards they can apply for as well as use.
Therefore, as you pick a credit card, below are 6 things to keep in mind:
- Interest rates
- Spending habits
- Credit limit
- Penalties and Fees
- Balance calculation method
Your Consuming Needs
Consider if you intend to amass air miles for offsetting costs on future flights, or you might be after quick cashback on purchases you make.
Accumulating air miles make sense since Singaporeans are zealous travellers. In the average Singaporean household, expenditure for travel represents about 3% of its expenses, compared to 16 % on dining, 9% on groceries, or even 17% on transportation.
A few cards grant more air miles or better cashback rates for specific types of spending, hence it pays to know your spending practices before diving in.
When to apply
There is no ideal time to get a second card. Provided your working budget can cater for spending on several credit cards, you may be able to obtain one. It can cause some minor problems only when you want to get a mortgage. However, under most circumstances, you probably are in the clear. It is especially a good time if you get the second card once you can identify with some of the following pointers:
- Your salary has increased, and you now have access to more options for credit cards.
- The spending patterns have changed. When your card gives only bonus rewards on restaurants, for instance, and you often do not dine out, this could be time to make a change.
- The current card has a limit on the rewards you may earn, and you wish to gain more rewards and benefits.
- You comfortably can pay the minimum requirements of the first card, and even have extra, spending this amount might be earning you better rewards.
- You have high-interest debts. Moving debt to the balance transfer credit card will save you cash on interest.
Use your spending to gain cash backs, miles, and other exclusive benefits. When you would like to accumulate miles or enjoy cash back, when utilized responsibly credit cards may be a good way to further stretch your dollar. It would be great when you can save on things you normally spend on. Other than benefits and convenience, you also can build a positive credit record if you make the repayments on time. Of importance is utilizing them wisely.
|Citi Cash Back Card|
|HSBC Advance Credit Card|
|American Express Singapore Airlines KrisFlyer Credit Card|
|Citi PremierMiles Visa Card|
|Citi Rewards Card|