Monday, December 21, 2015

Secret 10% Cashback Credit Card!!!

Don't say I got lobang I don't share hor.

I got top secret info about probably the most sick rebate credit cash that Singapore will see!

Unlike how the OCBC Frank had their perks REDUCED (yes, I forever hold this grudge after letting me taste the forbidden sweet water of 6% rebates), CIMB is re-vamping both their rebate cards to dole out whooping 10% rebates!


Here are the important things to note:

  • These changes only come into effect Jan 2016
  • You need to make 8 transactions of $30 each for that month
  • Total minimum spending of $500 per month 
  • Rebate cap of $60
  • The categories are different for each card
    • MasterCard: Travel, Health, Beauty & Wellness
    • Visa: Wine & Dine, Online Transactions in Foreign Currencies

The $500 monthly minimum spending seems to be the spending sweet spot that all credit cards try to aim for, so this isn't really a problem. Almost all cashback cards with a decent amount of cashback require this hoop to jump through.

However, a bummer in my opinion is the requirement for 8 transactions of $30 minimum each. I barely make 8 transactions a month, now they all have to be over $30? But, there is a loophole that I can see, which is going up to the cashier and asking them nicely to help you split up your bill and charge your card twice, or several times (ie. breaking a $100 meal into 2 X $50 transactions). Of course, not all restaurants will be so nice to do this, though I think that many would oblige.

The 2nd bummer is the online transaction.... in foreign currency? Okay, seriously. Who buys shit online in a different currency? And how often do people do that? This is a total dud in my opinion. Pretty worthless.

I do think that the Visa card is better because I do occasionally eat out, so it is a category that I would most definitely spend in and I can rake back in my cashback dollars. I find it hard to see how the MasterCard would be useful, since Travel transactions tend to be large in dollar value, but low in frequency, as well as health, beauty & wellness. It doesn't seem like they thought of their MasterCard strategy well.

The last negative to note is that they still have their unlimited cashback on whatever, but it has dropped from the decent 0.5% to the super basic rate of 0.2%. Almost all other "cashback" cards offer between 0.2% to 0.3% on general spending without fulfilling any requirements, so this "perk" is nothing special to shout about. 

The best "latent" cashback cards which starts from the very first dollar, and with the possibility of more cashback if you jump through certain hoops are now:

  • SCB Manhatten: 0.5% up to 3%
  • ANZ Optimum: 1% up to 5% (my personal pick)
  • AMEX Cashback: 5% for 1st 3 months, then 1.5%

Personally, even though this 10% cashback is extremely attractive and lucrative, I would caution people to be very, very, very sure about their spending habits if they want to get this card to take advantage of this absurdly high cashback. People need to be very clear about the T&Cs, especially for the category that they are spending for, and if they make enough frequent, semi-sized transactions to hit the 8 transactions of $30 required.

For people that usually eat out, I think that this could possibly be great for them!

Thoughts?

4 comments:

  1. GMGH
    Thank you for sharing.
    May I ask if there is any credit card which offers rebate but with no minimum spending per month?
    Thank you.

    ReplyDelete
    Replies
    1. Hi starlight,

      Like SGDividends has mentioned, most cards have the usual 0.5% or less.

      ANZ Optimum and the AMEX Cashback are good choices.
      For hassle-free, the premium CIMB cards are 1% with no cap. Min income is $120k though, haha!

      Delete
  2. starlight,

    Im assuming you are refering to cashback and not points rebate. No minimum spend:
    ANZ optimum 5% on selected category
    AMEX true cash back 1.5% , after the first 3 months of 5%
    Think all else has minimium, or else its the usual 0.5% or lesser.

    ReplyDelete

Observe the house rules.