Getting your first credit card may be intimidating, especially if you have no clue where to start. But we’ll help you get started with just a few tips!
How do credit cards work?
In comparison to a debit card, where you have the option to withdraw money from, credit cards offer customers a line of credit that can be used to make purchases, loan payments, cash advances, or balance transfers. In layman’s terms, credit cards lend you a limited sum of money that you eventually have to pay off.
When using a credit card, you don’t have to pay the entire sum that you used upfront. Instead, you will need to pay at least the minimum payment every month by the due date of every balance. For every purchase that hasn’t been paid off, interest charges will be applied.
Benefits of having a credit card
It improves your credit score
Owning a credit card presents the opportunity to build credit. A credit score is a numerical value used to determine a consumer’s creditworthiness. One of the simplest ways to improve your credit score is to always pay your credit card bills on time or even pay off your loan completely every time you use it. While these seem like simple numbers, a credit score can unlock many savings and benefits in the future and is an important part of your financial health. The better your score, the more benefits you will have such as better loan approval and low-interest rates.
It can be used for emergencies
For emergencies or last-minute plans, we may not always have the money upfront. When it comes to picking a credit card for emergencies, you’ll want one that has a low-interest rate, a high-enough credit limit and a longer grace period. Since you’ll want to fork out as little as possible or need more time to pay off your bills, you’ll want to look for credit cars with the above-mentioned features.
Customers can earn rewards
Depending on your credit card provider, you can earn rewards from the credit card that you use. Most companies would have rewards credit cards, which gives their customers rewards for every time they make a transaction with the card. These benefits include airline miles, dining vouchers, as well as cashback.
Common types of credit cards
Balance transfer credit card
This type of card is one of the most standard credit cards one can ever own. While it is a common feature for most credit card companies to allow balance transfers, a balance transfer credit card offers a low introductory rate for a certain period of time. For those who are looking to save money on a high-interest rate balance on an existing card, this card is ideal for you. However, do note that you’ll need good credit to qualify.
Rewards credit cards
From travel rewards to cashback, rewards credit cards offer a plethora of benefits for its customers. There are different types of rewards cards and the way you’d want to go about choosing is to think about what kind of benefits you want. Some people prefer receiving cashback for their purchases while frequent flyers enjoy miles rewards, which gives them access to free flights, hotel stays and other travel perks. If you think these are some benefits you’d enjoy, a rewards credit card is the way to go.
Business credit cards
Just as its name suggests, business credit cards are meant for business use only. This helps business owners keep track of their business expenses while keeping personal transactions separate. Other members of the company may also have access to this business card to make important transactions or even to pay meals for important business clients.
Student credit cards
Most people think that credit cards are only meant for adults. But did you know that student credit cards actually exist? If you’re still a university student who wants to own a credit card but have little to no credit history, these were made especially for you. One of the greatest benefits of having a student credit card is their low-interest rates on balance transfers, which is one feature that isn’t present in normal credit cards. Having access to such benefits can help with expenses such as paying off your student debt or your monthly rental.
Charge cards
Unlike other cards that allow you to only pay the minimum amount each month, charge cards don’t have a minimum payment as the balance needs to be paid in full monthly. Charge cards are typically only recommended for those who have the financial capacity to make monthly payments in full. Depending on your card agreement, late payments are subject to a fee, restrictions, and even card cancellation. Since this is quite a demanding credit card, candidates who wish to apply need to have an excellent credit history to qualify.
Which credit card do I go for?
Before going ahead and choosing what credit card you want to go for, reassess your needs and why you want a credit card in the first place. One of the dangers of owning one is being impulsive and going on a spending spree with money that you don’t even own. On top of that, since there is no limit to how many credit cards one can own, it can be tempting to use multiple ones at a time.
However, if you are looking to keep your payments simple, the best option is to find a card that has all of the features you are looking for. These features can range from cashback, travel miles, no annual fees, low introductory interest rates, and minimum repayment. As you align your credit card choice with these features, also ensure that they line up with your financial needs.
Credit Card | UOB One Credit Card |
| Speciality | If you consistently spend S$2,000/month, UOB One Card is the best card for maximising cashback on all spend. UOB One Card offers 5% general cashback, boosted to 6% on electric bills and 10% on Grab and select UOB Travel spend. Another reason UOB One Card stands out is its UOB SMART$ Rebate Programme. Spend with select merchants ‘double counts’–first towards minimum monthly spend, which determines rebate tier, and second by earning SMART$ which further offset future purchases. While there’s a S$192.6 fee, waived 1 year, cardholders more than make up for this in potential earnings, making UOB One Card one of the best cashback cards out there. |
| Website | https://www.uob.com.sg/onecards/uob-one-credit-card |
Credit Card | Maybank Family and Friends Card |
| Speciality | Maybank Family & Friends Card offers a great way for average and lower spenders to maximise rewards on local or regional spend. Cardholders earn 5% rebate on fast food & food delivery, groceries, transport, petrol, data communications/online TV streaming & more after S$500 minimum spend, or 8% with S$800 minimum spend. Even more, consumers can max out rewards at S$80/month with just S$1k monthly spend. This spend level would not only earn S$960/year, but also qualify for a fee-waiver: the S$180.0 fee is waived 3 years, and then with S$12k annual spend |
| Website | https://www.maybank2u.com.sg/en/personal/cards/credit/maybank-family-and-friends-mastercard.page |
Credit Card | POSB Everyday Card |
| Speciality | If you’re interested in high promotional rebates on daily essentials, consider POSB Everyday Card. Cardholders can earn high rates ranging up to 15% rebate even, in categories such as online food delivery, dining, groceries, transport, personal care and recurring bills. While these rates change, they typically reward everyday purchases. Higher rebates require hitting a Personalised Spend Goal which is based on individual spending behaviour and assigned by POSB. |
| Website | https://www.posb.com.sg/personal/cards/credit-cards/posb-everyday-card |
Credit Card | DBS Altitude Card |
| Speciality | DBS Altitude Visa Card stands out as one of the most affordable travel cards that offers both high miles rates as well as luxury perks. Cardholders enjoy 1.2 miles per S$1 local spend, 2 miles overseas, and 3 miles for online travel bookings–and miles earned never expire. Even better, consumers receive 2 free lounge visits annually plus dining and golfing privileges. Cardholders even receive comprehensive free travel insurance. The already reasonable S$192.6 fee is waived with S$25k annual spend, making DBS Altitude Visa a great card for average travellers seeking affordable perks. |
| Website | https://www.dbs.com.sg/personal/cards/credit-cards/dbs-altitude-cards |
Credit Card | OCBC 365 Cashback Credit Card |
| Speciality | OCBC 365 Card offers a great no-fee way to earn cashback on daily purchases. Cardholders earn up to 6% rebates on dining and 3% on groceries, land transport, online travel bookings and recurring electricity and telco bills. There are no merchant restrictions (unlike competitors) and rewards are capped at a lofty S$80/month. Another perk is that cardholders can enjoy a fee waiver with S$10k annual spend–that’s just S$833/month. This spending level also meets the minimum spend requirements, ensuring top rewards rates. Overall, OCBC 365 Card is definitely one of the best everyday options with a fee-waiver. |
| Website | https://www.ocbc.com/personal-banking/cards/365-cashback-credit-card |
Credit Card | Maybank Horizon Signature Visa Card |
| Speciality | Maybank Horizon Visa Signature Card is an exceptional option for people who sometimes travel and want to earn miles, but primarily maintain a local budget. Cardholders earn 3.2 miles per S$1 local spend on dining, taxis & Grab, petrol, and hotel bookings with Agoda. Spend on air tickets, travel packages and overseas earns a still-impressive 2 miles per S$1. These rates allow the average consumer to rapidly accrue miles when at home, as well as when they plan for vacations. Even better, the S$180.0 annual fee is waived 3 years, then with S$18k annual spend. Ultimately, Maybank Horizon is one of the most affordable travel cards and offers market-leading miles rates for local spenders. |
| Website | https://www.maybank2u.com.sg/en/personal/cards/credit/maybank-horizon-visa-signature-card.page |
Credit Card | HSBS Advance Credit Card |
| Speciality | HSBC Advance Card provides an opportunity to earn up to S$1,500 in annual rebates with just S$3,570/monthly spend–which is great for higher spenders seeking cashback. Cardholders can earn up to 3.5% flat rebate with S$2k/month spend (2.5% if below) and up to S$125/month in rewards, as long as they are current Advance customers. Such customers are also exempt from the annual fee. Non-Advance customers earn lower rates, have a lower cap, and must pay a fee. As a result, it’s worth checking out an Advance account. Thereafter, HSBC Advance Card may just be the best flat-rate rebate card on the market for above-average spenders. |
| Website |
Credit Card | American Express KrisFlyer Credit Card |
| Speciality | American Express Singapore Airlines KrisFlyer Card is a noteworthy option for miles card beginners. Spend directly earns KrisFlyer Miles, which are credited to the cardholder’s frequent flyer account–there are no conversions or transfer fees. In addition, while consumers earn 1.1 miles per S$1 spend (2 miles for overseas in June & December) they can earn 2 miles for spending on SingaporeAir, SilkAir, and KrisShop. These straightforward rates are complemented by perks like free travel insurance, Hertz rental car privileges and Amex Selects discounts and deals. While there’s a S$176.55 fee, it’s waived 1-year. Ultimately, Amex SIA KF Card is a worthwhile option for Singapore Airlines flyers looking for convenient miles. |
| Website | https://www.americanexpress.com/sg/credit-cards/singapore-airlines-krisflyer-credit-card/ |
Credit Card | HSBC Visa Platinum Credit Card |
| Speciality | Consumers with high consistent spend on food and petrol can maximise rewards–both in cashback and miles–with HSBC Visa Platinum Card. Consumers earn up to 5% cashback on local dining and groceries, 21% fuel savings at Caltex and Shell, and 0.4 miles per S$1 general spend (equivalent in value to 0.4% cashback). However, the card’s rebate system requires a consistent S$600+ monthly spend to access this rate, and earnings are capped at S$250/quarter. Still, consumers with about a S$2,000 budget could reasonably earn S$85–S$90 monthly in total value, making HSBC Visa Platinum Card one of the best cards on the market for average spenders. |
| Website | https://www.hsbc.com.sg/credit-cards/products/visa-platinum/ |
Credit Card | Citi Cash Back Credit Card |
| Speciality | If you’re a high spender with a budget of S$7,000+/month, you’re most likely to maximise cash back from your purchases with Citi Cash Back+ Card. Cardholders earn an impressive 1.6% rebate with no minimum spend requirement or earning limit–which is ideal for affluent consumers who typically feel constrained by cards with earnings caps. While there aren’t many extra perks or privileges, Citi Cash Back+ Card’s rewards rate is higher than the 1.5% offered by most comparable cards. As a result, Citi Cash Back+ is the best option for people with large budgets who are focused primarily on earning to their full potential. |
| Website | https://www.citibank.com.sg/credit-cards/cashback/citi-cash-back-card/ |
Credit Card | Citi SMRT Card |
| Speciality | One of the best credit cards for young professionals is Citi SMRT Card. This card is one of the only cashback options on the market that does not have a minimum spend requirement, which makes it extremely accessible. In terms of rewards, cardholders can earn up to 5% rebate on groceries, 5% on fast food, coffee & cinemas, 3% on online shopping, and 2% on health & wellness. Most of these categories are merchant-limited, but eligible vendors are quite popular: Sheng Siong, Starbucks, Cathay Cineplexes & many more. |
| Website | https://www.citibank.com.sg/credit-cards/cashback/smrt-credit-card/ |
Credit Card | Standard Chartered Unlimited Cashback Credit Card |
| Speciality | The Standard Chartered Unlimited Cashback Card is a no-brainer when it comes to calculating your cashback per month. First, it offers a great alternative, providing an unlimited 1.5% cashback on all spend, with no caps or minimum requirements. The S$192.6 fee is waived for 2 years, allowing consumers to earn without worrying too much about added costs. |
| Website | https://www.sc.com/sg/credit-cards/unlimited-cashback-credit-card/ |
Credit Card | American Express True Cashback Card |
| Speciality | American Express True Cashback Card is perhaps the absolute best unlimited cashback card currently on the market. Cardholders earn a flat 1.5% rebate on spend locally and overseas, boosted to 3% for the first 6 months (up to S$150 total bonus). In addition to this stand-out welcome deal, consumers have access to special perks like American Express Selects, card-specific discounts and free travel insurance. Many of these deals relate to wedding expenses, making Amex True Cashback Card a great option for those planning their big day. |
| Website | https://www.americanexpress.com/sg/credit-cards/true-cashback-card/ |
Credit Card | DBS Live Fresh Card |
| Speciality | If you’re a modern spender who frequently shops online and feels comfortable using digital wallets, look no further than DBS Live Fresh Card. Cardholders earn an impressive 5% cashback for spending in both categories, up to S$60/month total. There is a S$600 minimum spend requirement to access these rates, but it’s slightly lower than the S$800 required by most competitors. Paired with its SimplyGo functionality, DBS Live Fresh Card’s rewards structure is great for people looking to streamline their wallets and maximise rebates from tech-forward spend methods. |
| Website | https://www.dbs.com.sg/personal/cards/credit-cards/live-fresh-dbs-visa-paywave-platinum-card |
Credit Card | DBS Woman’s World Card |
| Speciality | DBS Woman’s World Card is another great option for people who shop online and make bigger purchases than they can immediately pay for. DBS Woman’s World MasterCard accommodates interest-free instalments across up to 12 months with a waived processing fee (3%–5% of the transaction amount in the case of longer tenures). DBS Woman’s World MasterCard also stands out for its rewards schema. Cardholders earn 4 miles per S$1 spend on online shopping, up to 8,000 miles/month. General spend earns 0.4 miles per S$1 locally and 1.2 miles overseas, so this card is the best fit for people who primarily spend online. |
| Website | https://www.dbs.com.sg/personal/cards/credit-cards/dbs-woman-mastercard-card |
Editor’s Note:
While every precaution has been made to ensure the accuracy and fairness of this listing, we acknowledge that they may be inaccuracies. Therefore, we urge you to contact the service provider above for the correct information and/or contact us with the correct information.
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