5 Ways Credit Cards Help You Save Money

Three people using different types of credit cards to save money in Singapore.
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5 Ways Credit Cards Help You Save Money

checking blog post using mobile
Three people using different types of credit cards to save money in Singapore.

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Credit cards often get a bad rep but they can really work to your advantage if you are savvy and responsible in the way you utilise your cards. Having good credit card habits (e.g. paying your bills in full punctually every month) is instrumental in making sure that you stand to benefit most from what they truly have to offer. Still not convinced? Check out the five ways credit cards can help you save money below. We guarantee you will see credit cards in a different light going forward.

1. Some cards give you cash rebates

Nobody would say no to getting cash rebates on their spending. How much cashback you can earn depends greatly on the credit card you hold. You can expect to save on things that you were already going to spend on if you use the right credit card when making payment, such as a cashback credit card or a rewards credit card that lets you redeem your points for cash rebates later on.

2. You can redeem rewards points for lots of things

There are plenty of rewards credit cards on the market for good reason. While not all credit cards are made equal, rewards credit cards typically let you earn rewards points that you can later on redeem for a myriad of things from cash rebates, vouchers and merchandise to gifts, car rentals, hotel stays, holiday packages, and even free flights with their airline partners.

3. The many deals and discounts available

From dining offers and retail shopping discounts to promotional prices on attractions and entertainment perks, banks in Singapore are considerably generous in this aspect. Unless you have the habit of scouring these credit card deals on the banks’ websites every now and then, the best way to keep yourself updated of these ever changing deals and discounts year-round is to sign up for their marketing emails.

4. Some cards offer free travel insurance

If you happen to be someone who travels regularly or at least a good number of times in a year, you might want to consider getting yourself a travel-oriented credit card that offers free travel protection. Most banks in Singapore offer such credit cards, by the way, so pick the one that best suits you. Keep in mind some cards are more prestigious and offer more exclusive perks, such as free airport lounge access, so these tend to come with heftier annual fees compared to the more basic cards out there.

5. Some cards help you earn more interest on your deposits

Don’t you find the amount of interest you can earn on a standard savings account incredibly pathetic? At a meagre 0.05% per annum, it is hardly even enticing for anyone looking to make the most of their hard earned savings without having to risk them through the likes of investments.

For the most part, some banks in Singapore do offer high interest savings accounts where you can definitely benefit from in the long run if you are willing to put in some effort in learning how these mechanisms work.

Don’t know where to begin? Check out UOB One Account, OCBC 360 Account, DBS Multiplier Account, Standard Chartered Bonus$aver Account, BOC SmartSaver for starters. Besides stashing a tidy sum of money in your account, you are required to spend a certain amount on your eligible credit card linked to the account every month among other criteria that you may need to fulfil.

If you are determined to open any of the above-mentioned accounts, make sure you do your homework and pick the most suitable and eligible credit card that works for your spending patterns and lifestyle. Depending on the account you are going for, you may or may not have too many credit cards to choose from as some banks are more restrictive in their credit card options available for use with their high interest savings accounts, so do your own research beforehand!

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