facebookI'm a working adult in my 30s and have never owned a credit card. I now realise the usefulness and benefits and would like to take the first step. Can anyone recommend 2 cards and why? - Seedly
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Anonymous

06 Jun 2020

I'm a working adult in my 30s and have never owned a credit card. I now realise the usefulness and benefits and would like to take the first step. Can anyone recommend 2 cards and why?

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    What are your thoughts?

    Elijah Lee

    Elijah Lee

    21 May 2020

    Level 17·Independent Financial Advisor at Phillip Securities (Jurong East)

    Hi anon,

    There are two types of cards out there, those that reward cashback, and those that reward miles. You should decide which camp you wish to be in. It's not impossible to be in both, but it's probably not very efficient either.
    I find that cashback, while simple to understand, is just that. A rebate of some form. Miles actually presents a kind of game that's easy to pick up but difficult to master.

    Cashback, you spend, you get cash back. Done. Sometimes, you don't get a lot due to the lack of your minimum spend. Sometimes you get a lot, but then you get capped at the maximum possible cashback awarded that month. Miles, you spend, you get your miles. No matter how much you spend, a little or a lot. You are usually not capped on how many miles you can earn.

    I am not a cashback person, so from my point of view, I'll only be able to suggest 2 cards for miles.

    You can consider the DBS Altitude or Citi PremierMiles. Both cards give a decent rate of 1.2 miles per dollar (mpd) on general spend. You'll also want to examine your expenditure patterns and get a card that awards more on bonus spending such as dining. Such cards award 4mpd. Check out this link for more information: https://milelion.com/credit-cards/guide/

    For cashback, if you really wanted a card, just pick any card that has unlimited cashback with no caps, and another which has bonus cashback upon a certain minimum spend (but you should only spend up to that amount, and then put the rest on the other cashback card). SCB Unlimited Cashback/AMEX Truecash back should be your general cashback card, but for the specialised/bonus cashback card, you will have to do a bit of research.

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      If you haven't been focusing on this area for the past 10 years, my guess is that you're not too keen in tracking rewards and requirements.

      Keeping thing simple if you're lazy to have the 'depends on your needs and spending talk', pick a card which pairs with your high yield savings account, and another hassle free card which is brainless and doesn't require tracking.

      Sure, there may be many other cards out there, but you'll have to be willing to pay some attention to your card spending strategy.

      Otherwise, simplistically:

      1. Credit card which pairs with your high yield savings account - UOB One, DBS Live Fresh, OCBC 365

      2. Simple general cashback card - Citi Cash Back+ (1.6%), or Maybank FC Barcelona (1.6%)

      Miles cards are sexy and everyone talks about them, but you are probably better off with cashback unless your default travel is with business class / optimising your strategy closely. Else, you're just being upsold and tricking yourself into believing you're getting a 'free' business class ticket.​​​

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        Maybe you can check on the different savings account available and check which one suits you best (t...

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