I guess with cashback, the pros is it’s easy, right? You know, there’s a headline rate that you’re going to get, maybe 1.7, 1.8 per cent. I think the best cashback card out there at the moment is 2 per cent with no minimum spend and no hoops to jump through.
But the downside is, if you want to meet these headline rates that a lot of them are promoting, some are saying up to 20 per cent cashback, or up to 10 per cent or up to 8 per cent, there’s an asterisk next to that, saying that you need to spend on this specific thing every quarter, minimum spend, and it’s capped at whatever 200 (dollars) per quarter. So there are caps to those things.
Andrea:
And I wonder as well, whether it’s about when you have that kind of card.
For example, if I’m moving to a new house and I know I’m going to buy lots of big ticket items, that’s going to chalk up lots of either miles or cash rebates, because I’m chalking up a large bill.
Tim:
So I think that’s also another thing to consider, in the next sort of six to 12 months, are you going to have a big outlay? And if you do, do you know which card to put it on?
Because it might not make sense to just put it on one card and you’re leaving either miles or maybe it’s potentially some cashback on the table.
And that’s the thing with some of these cards, even the miles cards, they have caps on the four-mile per dollar type of range, you can only earn it up to S$2,000 a month, or S$1,000 per statement month, whatever it is. And that might not make sense if you’re spending a lot of money in one go.
Same thing with cashback. There are minimums per month, and if you don’t spend maybe the minimum the next month, it might not make sense to spend so much in one month.
So there are things that you really have to consider, but I would say one other thing to consider is the choice.
