7 Purchases to Always Charge to Your Credit Card

Using a credit card can be a savvy move for various purchases, thanks to the added security and potential perks. Beyond building a strong credit history, some purchases are best made with a credit card to maximize these benefits.

Many cards offer rewards like points or cashback, which can accumulate over time, essentially giving you “free money” if you consistently pay off your balance without incurring interest fees. Remember to use your credit card wisely!

SCORING EVENT TICKETS

Credit cards often offer special access to event tickets. Many card companies have partnerships with event promoters or venues, giving cardholders the chance to buy tickets for concerts, sports events, and other activities before the general public. Sometimes, there are even exclusive events just for cardholders.

For instance, when Taylor Swift’s concert tickets in Singapore went on early sale, UOB cardholders had the advantage of grabbing tickets before others.

PURCHASE BIG-TICKET ITEMS

When buying big-ticket items like refrigerators, laptops, or other electronics, using a credit card is a great idea. Not only can you earn significant rewards points, but many credit cards also provide additional insurance on these items.

This might include extended warranties that double the manufacturer’s warranty or price protection if the item’s price drops shortly after purchase.

MAKE TRAVEL ARRANGEMENTS

Booking travel with a credit card can offer substantial benefits. Many cards provide travel-related perks such as trip cancellation or interruption coverage, lost luggage insurance, and even emergency medical coverage. These benefits can save you from purchasing separate travel insurance.

Travel-themed credit cards typically offer higher rewards points for travel-related expenses. Plus, a credit card is often required to secure bookings for flights, accommodations, and car rentals.

SECURE OVERSEAS PURCHASES

Credit cards are generally more widely accepted than debit cards when traveling abroad. They are also safer to carry compared to large amounts of cash, as lost or stolen credit cards can be cancelled easily. Some credit card companies offer favorable exchange rates, providing additional savings.

Before traveling, notify your credit card provider of your itinerary to avoid any security issues or hindrances with your card while overseas.

ADD TO CART

Using a credit card for online shopping offers several advantages. Credit card transactions are easier to trace and often come with protections against fraudulent charges. Many cards also provide insurance for items lost or damaged in transit.

Always ensure that you never send your credit card information over email or text to safeguard your details.

CHARGE YOUR BUSINESS PURCHASES

For business owners, using a credit card to manage expenses can simplify accounting and help build business credit. Many business credit cards offer cash-back rewards or statement credits for purchases like internet services, cell phone plans, and office supplies, which can aid in tracking and managing cash flow.

Using a dedicated business card for recurring expenses can also help with tax deductions.

PROTECT PHONE PURCHASES

If you enjoy buying products via home shopping channels or infomercials, always use your credit card. This provides protection if you don’t receive the item or if it doesn’t match what was advertised. Credit card protections can save you from potential scams or disappointments from phone orders.

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Using your credit card for these types of purchases can provide additional security, rewards, and peace of mind, making it a smart choice for managing your finances.

Sources: 1 & 2

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6 Overlooked Perks Of Using Credit Cards In Singapore

From ease of purchasing items to fraud protection, credit cards offer the several benefits. Just please use your plastic card responsibly!

#1: RECEIVE ONE-TIME BONUSES

Signing up for new credit cards will qualify you for the initial bonuses or sign-up rewards. You can new items or reward points that can be redeemed for travel, gift cards, and more.

In contrast, a debit card that comes with a bank account generally offers no initial bonus or ongoing opportunity to earn rewards.

#2: TAKE ADVANTAGE OF THE GRACE PERIOD

When you make a purchase using your debit card, your money disappears right away. When you make a purchase using your credit card, your money remains in your account until you pay for your bill.

There are two main benefits of having a grace period. Firstly, the time value of money will save you money. Delaying eventual payment will allow you to earn money during the grace period. Secondly, you will have a set period to pay for your purchase. You do not have to watch your bank account balance vigilantly.

#3: BE REWARDED WHEN YOU SHOP

Reward credit cards allow its users to earn points for every purchase. Many reward credit cards give bonus points for certain categories such as restaurants, groceries, or petrol.

When your earnings reach a threshold, points can be redeemed for travel or gift cards to shop at participating retailers and restaurants. All you need to do is to choose a card that suits your spending pattern and your lifestyle!

#4: INDULGE IN THE COMPLEMENTARY CASHBACK

You can get a percentage of the items you purchase refunded back into your account with the credit card’s cashback feature. How much you get back varies per bank or credit card. Nonetheless, rebates usually apply only to certain items.

For instance, Standard Chartered’s Unlimited Cashback credit card* lets you receive 1.5% cashback on your eligible purchases. No minimum spending is required. Another example of no minimum spending is the Citi Cash Back+ Card*. It offers 1.6% cashback on all spending.

Note: *Terms and Conditions apply.

#5: BUILDING OF CREDIT SCORE

When people assess whether you are qualified for a loan extension or not, banks do not just look at your annual income. These banks also examine your credit rating for indications of proper financial management.

By using your credit card sensibly and regularly, you can build reputable credit rating. Enjoy lower interest rates for your unsecured loans by having a better credit score. Be sure to pay off your balances each month and keep your spending to a minimum.

#6: EXTRA LAYER OF PROTECTION

Apart from the convenience that cashless shopping can bring, certain credit cards offer a range of purchase protection insurance. This type of insurance will help ensure your peace of mind as you shop. The following protections can be given by your issuer: a. price protection, b. purchase protection, and c. fraud protection.

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Price protection refers to getting back the difference or a percentage of the difference if an item you bought on your card drops in price within a timeframe. Purchase protection refers to the coverage against theft or accidental damage. This protection usually lasts until six months. Lastly, fraud protection refers to being refunded for purchases made using your stolen credit card or card details.

Sources: 1, 2, & 3

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Expenses You Must Never Swipe On Your Credit Card

I have to admit! Credit cards are convenient, especially at this time. However, swiping your plastic card often costs you more money than other payment options. Regular charges from interest rates and annual fees are coupled by hidden surcharges. The latter are transaction-based fees that can add up!

You must maximize your savings and use your debit card as much as possible. On that note, here are the expenses that you must avoid charging into your credit cards.

#1: EDUCATION EXPENSES

Most schools and universities accept credit cards as a form of payment nowadays. Some even offer attractive interest rates. Just because it is available does not mean you have to use it. During my time, a diploma course in a private institution costs S$10,000 a year. Imagine paying a 3.5% interest per month? This will accumulate to about 51.11% interest in an annum. This is too much, if you ask me.

#2: GAMBLING EXPENSES

Gambling addiction is inside the Psychological manual of Psychologists and therapists. Gambling is there for a reason! It poses an uncontrollable damage on one’s finances and relationships. If you are thinking of using your credit card to cover your gambling-related costs, you are in deep trouble. Go home!

Contemplate on the monthly interest rates you will have to pay on the top of hidden fees. The interest rate will shoot up continuously until you pay your balance in full amount.

#3: MEDICAL EXPENSES

Many experts agree that you must use your Government medical allowance, non-retirement savings, and available cash to pay for medical expenses. If the COVID-19 situation is tough for you, you may get a low-cost loan option too. Medical expenses can immediately put you in a mountain of debt. You cannot simply turn to your credit card to pay for your entire hospital bill!

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As you take in all the above information, it is important to know how to avoid surcharges. Follow these tips.

a. Use a debit card to pay for your retail expense as it directly deducts from your bank account. Another electronic service that rarely incurs fees is NETS.
b. Book your flights using travel points. Use your travel points or air miles when you book for a flight overseas.
c. Use vouchers when institutions do not accept credit card points or rewards.
d. Link your credit card to PayPal. PayPal allows you to link your bank accounts in one place. This way, you will be able to pay the merchant free of extra fees.
e. Search for other businesses that offer zero interest rates on credit card transactions.

May these tips help you shop around!

Sources: 1 & 2

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Beginner’s Guide To Credit Cards

DEFINITION

Swiping a credit card is the polar opposite of using a debit card. The latter allows you to spend the money that you already have in your checking account. While, the former lets you borrow money from a financial provider. You have to pay an interest at the end of every billing statement.

Be forewarned that having a credit card does not equate to having “free” cash around. It only means that you are expected to pay back whatever you borrowed at a given period of time. Furthermore, you are held responsible to check whether you are spending within the maximum limit.

MECHANISM

How do credit cards work? As a responsible owner of a credit card, you must know the mechanism behind owning one.

Firstly, you must apply for a credit card. Research on which type of card suits your needs the best. Choose a card based on your eligibility, your credit score, your annual income, and your lifestyle. One credit card may have an annual fee, while the other may have a discounted fee for the first year.

Secondly, you must wait for the financial provider’s approval. Major credit card companies often use online services for their card applications. Thus, you will he able to review your application results immediately. Once approved, your financial provider will send you a physical card.

Thirdly, you must make purchases with your card. To spend online, simply enter your credit card number and other additional information (e.g., CVC at the back of the card). Your balance will add up as you spend. Remember to keep an eye on your credit card limit.

The last step is for you to review your billing statement and pay promptly as you have agreed.

SUGGESTION

For beginners, some of the best credit cards this year are as follows. You can count on the American Express Platinum Credit Card for rewards, OCBC 365 Card for dining benefits, and Citi VISA PremierMiles Credit Card for travel miles.

A. American Express Platinum Credit Card lets you reap these benefits:

* Receive 1 Night Stay at Swissôtel The Stamford Singapore worth S$529 upon Annual Fee payment.
* Receive an additional Samsonite Sigma 76cm Expandable Spinner worth S$600 when you spend S$4,500 within the first 3 months of Card Approval.
* Receive S$20 CapitaVouchers each, for the first two approved Supplementary Cards.
* Enjoy Love Dining @ Restaurants privileges which offers up to 50% savings on food orders at a handpicked selection of popular restaurants.
* Love Dining @ Hotels offers you exceptional year-round privileges and savings of up to 50% on food bills for unlimited visits at selected 5 star hotels around Singapore.
* Enjoy a complimentary drink with purchase of at least one item from the merchant’s menu at over a dozen fashionable bars in Singapore.

To qualify, you must have a minimum income requirement of S$50,000 per annum for Singapore Citizens and Residents and S$60,000 per annum for Expatriates. Terms and conditions apply.

B. Citi VISA PremierMiles Credit Card lets you collect travel miles, which you can use in renowned airlines’ frequent flyer and hotel loyalty programs. These include Krisflyer, Asia Miles, and Qantas. You will be rewarded fast as you spend with your card. Terms and conditions apply.

C. OCBC 365 Card is best used for dining. It has a cashback promo that allows you to reap rewards whether you dine internationally or locally. Here is a layout of the rewards:

* 0.3% cashback on ALL spending
* 3% cashback on TELCO bills, local supermarkets, and online purchases
* 3% to 6% cashback when you dine in restaurants island-wide
* 5% cashback on petrol purchases
* Up to 18.3% discounts at petrol stations
* 3% cashback on medical spending – under Child Development Account
* Complimentary travel insurance (up to SGD $800 coverage)
Terms and conditions apply.

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Be wise when choosing your first plastic card! 🙂

Sources: 1 & 2

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5 Important Queries To Ask Before Getting A Credit Card

1. WHICH ONE DO I NEED TO APPLY FOR?

Like a tempting box of chocolates, all credit cards are not made the same. Be sure to shop around and to compare cards of similar types. You must know the necessary requirements, sign-up offers, rewards program, and other perks that come with it. Some cards may offer free airport luggage, while others may offer car rental insurance. Choose the benefits that suit your needs.

2. ARE YOU ELIGIBLE?

Applying for a credit card is a straightforward process that requires basic information such as your NRIC and primary address. Know which information and documents are needed to apply for said credit card. For security purposes, some institutions may extend their research by knowing your mother’s maiden name.

3. IS IT BETTER TO APPLY FOR A CREDIT OR DEBIT CARD?

The most significant difference between debit and credit cards is protection against fraud. If someone makes a fraudulent charge with your debit card, the money is directly deducted out of your bank account. It may take weeks to get a refund. When it comes to a credit card, you can dispute that the charges never left your account.

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Other benefits offered by credit cards include extended warranties, rewards programs, and return guarantees.

4. WHAT ON EARTH IS A CASH BACK?

Credit card companies offer different programs for redemption. When a credit card company gives you a certain percentage of what you put into your card then, that is called a cash back. You may be able to use this as a credit toward your current statement, to purchase gift cards, to get discounts when you shop online, or to deposit the money back to your bank account.

5. WHAT IS A STATEMENT CREDIT?

The positive amount on your credit card bill is called a statement credit. If you unintentionally overpay, many credit cards will apply a statement credit toward your future purchases. The act of applying for a cash back to a statement credit may lower your balance.

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Sources: 1, 2, & 3

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