Even in this small island Singapore, the amount of credit cards available to one is staggering. For instance, UOB alone provides up to 16 types of credit cards! (I seriously wonder if UOB has ever granted these 16 cards to one individual.) And I wouldn’t be surprised if there are up to 100 different credit cards to choose from in the local market.
Visa, MasterCard & Amex! I wanna own them all?
And seriously, I doubt there is a “best credit card” strategy out there, despite what many credit card experts say. In my view, a lot depends on:
- Which cards you can qualify for
- Expenditure patterns
- Type of rewards you desire
- Effort to track spending and card rewards
Since the My 15HWW household THINKS that we charge quite a bit of grocery expenditure and restaurant visits to our credit card, and that we prefer cashback rewards since there’s no need to track points and their expiry, we have used OCBC 365 Credit Card as our main credit card for the past 1 year. Simplicity matters to us.
Below is a diagram that re-iterates the benefits of this credit card:
The % rebates for each category is pretty enticing (and not surprisingly), are in big fonts. However, a key criteria (in smaller print… urgh) to qualify for those rebates is a minimum spending of $600. If one fails to chalk up $600 of spending, a flat 0.3% of cashback is awarded instead.
Needs a rethink now, eh?
But since OCBC allowed me to have a supplementary card (now you know who wears the pants in my house?) and considers both the main card and supplementary card’s spending in meeting that key criteria, we felt $600 shouldn’t be a problem.
And it proved to be, as seen from the table below:
|Month||Cashback Received||OCBC 365 Bills|
To summarise, we really didn’t have any problems meeting $600 in a single month and the effective cashback rate for the past 1 year is 2.97%.
The bills were ridiculously high especially in some of the earlier months as we played on the safe side. Worrying that we might not be able to meet $600, we charged my mother-in-law’s salon and facial packages to the Mrs’ OCBC 365 Credit Card.
This also probably helps to explain why the cashback rate is below 3%. The negligible rebates from those package installments likely cancelled out the attractive weekend dining rebates of 6%. Since most of the expenditure came from our somewhat outrageous restaurant spending, groceries and telco bills.
Should We Change To Other Credit Cards?
But seriously, I am quite pleased. A 2.97% rebate is significant to us and helps lower our cost of living. Actually, I think of them as dividends coming from spending charged on a credit card. $1,500 in one year! And when paired together with the OCBC 360 Account (click here and here to find out more), the OCBC 365 Credit Card is part of a great package provided by OCBC.
I know some OCBC 360 Account holders prefer the (much cooler) FRANK Card but I am curious if most of them are getting close to a 6% rebate. We know it doesn’t really suit us since we don’t do much online shopping except for a Groupon buy once in a while. Gosh, we have never bought anything from Red Mart before.
Some people are touting the UOB One card as potential competition but since it’s rebates are capped at a maximum of 3.33%, I doubt there is really any value for us to switch.
How about you? Have you tracked the REAL rebates you are getting from your credit card? Do share with me if you happen to know of other great credit cards out there!