For the next few weeks, I will be reviewing the credit cards issued by Singapore banks and providing you with which are the best ones that you should have in your wallet. First, some useful tips on the use of credit cards which I have accumulated over the years.
Direct Discount
I for one, always makes it a point to ask if there are any credit card discounts available at the point of payment whenever I dine at a restaurant. These normally range from 10% to 30% which can be quite substantial if you are with a big party. If you are the sort who likes to plan, you can even suss out the dining discounts by goggling for credit card promotions prior to the meal. It is quite common nowadays for cards to have one-for-one / 3 for the price of 2 / 4 for the price of 3 promotions. If you happen to have the correct no. of diners, you will be able to maximise the discounts provided. This way, it allows you to have a nice meal and not have to pay the full costs of one.
It is also a good habit to get into when you do your online shopping, to find out if any of the credit cards you hold is able to give you a good discount or provides bonus points for shopping online. Some cards provide discounted consolidator services if you purchase from websites which do not ship directly to Singapore.
Cash Rebate
Some credit cards also provide cash rebates for your next purchase / visit. Do keep a lookout for signs at the cashier for these promotions. There are some credit cards which provide rebates at the petrol kiosks, supermarkets, departmental stores or drugstores. As most families spend a substantial amount on groceries, these rebates can add up over time. Also, watch for rebates provided on recurring bills like utilities, telecommunications, cable TV, internet that your credit card might be able to provide.
Bank products
In the recent few years, banks have come up with innovative banking bundled products which involves encouraging customers to consolidate their banking needs. Some examples are the OCBC360, DBS Multiplier and the Standard Chartered Bonus$aver account. By spending on your credit cards up to a certain amount, you will be able to get favourable interest rates on your savings deposits with them subject to certain terms and conditions. These are very useful as the interest can add up to a few hundred dollars a year.
Annual Fees
Most of the time, if you call up the banks when they bill you for the annual card fees, they will waive it for you. For some of the banks, there is even an automatic option in the phone banking menu to cater to this particular request. You just need to key in your credit card no. and the request for waiver will be put up automatically and the bank will inform you via sms once the request has been approved. All you have to do is to pick up the phone.
However, do note that for selected credit cards like American Express or DBS cards with other privilege cards attached, for example the FAR card which allows you to enjoy dining discounts at selected restaurants, fees have to be paid. For others, it might be worthwhile to pay the fees as they either allow you to earn miles or provide high end electronic goods like branded cameras to entice you.
Finance Charges / Late Fees
As for finance charges and late fees, when you call up the banks to put up a request for waiver, they will usually let you off if you are a first-timer and have good credit history with them. However, do not expect leniency if you are a repeat offender.
Sign Up Offers
As the credit card acquisition war intensifies, banks are offering very good freebies especially if you are a new banking customer. Some are offering free tablets, luggage bags and even cash credit to your card if you sign up with them.
Do share with us if you have other tips on the usage of credit cards.
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