Pros and cons of owning credit card

Pros

Cashback

Credit score

Better cashflow

Cons:

If no discipline, you will kena debt trap

As long as you make your monthly payments (as I do through GIRO or setting a date on my calendar after my salary is deposited), it's all pros.

Credit cards are going to provide you with a simple way of analysing your spendings. You’re going to be able to know when and where you’ve spent your money over the last couple of months.

Credit cards can also unlock new experiences such as the ability to redeem business class flights.

For instance, the Citi Rewards MasterCard is one that I stand by and use often. It provides you with 4 miles per dollar, which is the same as an 8% discount (valuing 1 mile at 2 cents) in majority of the online stores. You can shop on Shopee, subscribe to Netflix or Spotify, pay for Telco bills and earn the rewards.

These miles have a validity of five years, so you will have sufficient time to redeem them.

In just a year, I have already managed to get enough miles through my credits card to redeem a business class round trip to Japan!

To add to the 4 miles per dollar, you can obtain 30,000 Citi ThankYou points (equivalent to $240) when you sign up using this link and spend $3000 in the first 3 months!​​​