Monday, June 6, 2016

Charge Travel / Online Expenses to which Credit Card?

In the past, the old OCBC Frank Card was awesome. 6% online rebate with spending over $400, up to a monthly cap of $60. This was the best card for making online purchases. Now, with the minimum $400 retail spend requirement and the same $60 cap, just toss and burn this stupid card. In fact, I have already canceled my card, received my cancellation confirmation and I will be shredding up my card later. Hehe.

I am going to make some big online purchases in a few months time, which is mainly going to be booking air tickets, accommodation and as well as anything that I can prepay online in advance. Because of that, I am trying to figure out which card I should get for that spending in the future.

Currently, I only have 1 credit card and 1 debit card.
OCBC 365 is my credit card for everything. 6% weekend dining, 3% online and 0.3% all else. $80 monthly cashback cap.
POSB Go! is my debit card if MasterCard is needed, my EZ-link card and my ATM card. 0.3% for everything.

The SCB Singpost card isn't too bad with it's 7% online rebate, minimum spend of $600 and monthly cap of $60. This does however mean that any online purchases over $857 will max out my $60 monthly cashback limit. That shouldn't be too hard to do, especially with an airline ticket. The base rebate is 0.2%, which is lower than the 0.3% offered by both my cards.

A totally overlooked card is actually the BOC Shop! card which gives 5.5 or 6% (depends on total spending) for online shopping, minimum spend of $500 online, maximum spend of $1000. The T&C wordings are a bit confusing, but basically you get 5% online rebates if you spend between $500-$1000. You get the extra 0.5% or 1% depending if your total spending is below or above $1000. After $1000, you can't qualify for any more of the 5% online rebates, but all your other spending will qualify for 1% rebate which isn't too bad either. Monthly cashback cap is $100, but it seems that only getting the first $60 per month is do-able with online big ticket spending.

I have problems recommending other cards, such as UOB One (3.33% cashback on everything, but requires minimum spending for 3 consecutive months in that quarter) or the ANZ Optimum card (5% cashback, but only covers airlines and travel agencies). However, I do know of a guy that uses his ANZ Optimum card very very well and always grabs the bill whenever he goes out. I heard that he ever got $200 in cashback in a month before (that's $4000 in spending!), but he does it for the dining category. Travel and online is a separate beast to tackle.

I'm not even going to recommend the AMEX True Cashback because it's promo cashback is only 3% and regular cashback is 1.5%. And you need the merchant to accept AMEX, which I can tell you, it is not commonplace. In that same stripe, the SCB Manhatten card can suck it as well. 0.5% base cashback and super high ridiculous hurdles just to get 3%. And that's capped at $200 per quarter. $66 rebate a month is nothing to brag about, but they like to flash this "up to $800 cashback a year" in their marketing. It's no competition. Your go-to OCBC 365 card has 3% online rebates that smack up these little kids in the online category. Theirs happen to be for all spending though.

The only other extra tip that I can give is to look out for credit card sign up promotions. I think it is really common these days for credit cards to give you $60-150 cashback just for signing up and spending $500. For example, SCB cards have a $138 cashback with online sign up with min 3 transactions within the first 2 months. UOB One has a $50 cashback with $600 spent in the first 30 days (8.3% cashback).

In any case, I will probably be applying for the SCB Singpost card maybe later this month if I can get someone from SCB to explain to me the card and promotion T&Cs simply. If things work out the way that I think it works out, my next overseas trip will see me immediately saving $138 + $60 even before I fly off, haha!

So, how do you spend when you travel?

1 comment:

  1. Thank you for sharing such great information. It was very informative and has help me in finding out more detail about Credit Cards!


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