The increase in credit card types has made consumers’ decisions harder than ever. For example, hotel and airline credit cards provide generous perks to brand-loyal cardholders. However, travel rewards credit cards typically come with fees, so they will not be worthwhile if you do not travel much. In this instance, you may be better off with a credit card SG with a cashback feature, as they frequently feature low fees and other benefits.
Let’s check out the Great Benefits of a Credit Card with Cash-Back Feature
Simple Method to Earn Rewards
One of the benefits of cashback credit cards is that it is simple to accumulate rewards. Some credit cards offer higher cashback (or point) rates, but they can be more difficult to use. For example, some cards have various rates for categories, such as grocery, dining out, gas, etc. Thus, maximizing your spending may need carrying multiple cards and remembering which has the greatest rate for each category. In addition, several of these credit cards offer 1% cash back on purchases made outside their highest-earning areas. In contrast, flat cashback credit cards may offer a higher return on all transactions, irrespective of spending type.
Premium credit cards offer attractive benefits, but annual fees that might exceed $500 can be a deterrent. Therefore, credit cards are only worthwhile if their bonuses are utilized frequently. Meanwhile, cashback cards enable you to optimize your spending without an annual charge.
No Introductory Annual Percentage Rate
A credit card company’s revenue comes from interest charges on cards carrying a balance. Despite this, cashback credit cards frequently have an introductory APR of 0% for the first six months. Since credit cards frequently have no balance transfer fees, they may be useful for paying off other high-interest debt. You can also charge a substantial purchase to your credit card and pay it off over time. Note that interest will be levied if the balance is not paid in full before the introductory period expires.
Although travel rewards credit cards can offer attractive redemptions, they provide points, not cash, and the value of those points is subject to alteration without notice. The opposite is true for cashback credit cards. The credit card issuer cannot alter the value of cash. Therefore, you are aware of your rewards with a cashback credit card in advance. The only variable subject to change is the cashback rate, but only for rewards received in the future; previously earned cashback cannot be discounted. Before signing on for any credit card, read the complete terms and conditions, so you understand the rewards program in detail.
Sign-Up Bonuses & Benefits
In addition, cashback credit cards frequently include generous sign-up incentives. Sign-up incentives for cashback credit cards are typically less valuable than those for premium credit cards. Nevertheless, the sign-up bonus is a valuable incentive, given that cashback cards often do not charge an annual fee. In addition, cashback cards may offer further benefits.
How to Evaluate a Credit Card with Cash Back
Consider the fees first when researching credit card SG with cashback. Many banks and credit unions are attempting to cut fees, so you should search for a card with little or no fees. If the card has an annual fee, ensure the rewards are sufficient to justify it. Consider the sign-up bonus and other advantages, as well as the minimum spending requirement, to earn the bonus.
Lastly, what are the additional benefits? Cashback credit cards can provide a variety of rewards, so this decision is up to you. Assess different credit card SG cashback cards to see which offers the best features.