Asked 3w ago
My monthly expense is around 800-1000 for income tax, bill, insurance etc. Have been using debit card at 1% cashback pa. Is it more advantageous to use credit card given I track my expense? What are the advantages?
Understand that there is annual fee. Is it possible to get it waived every year?
Yes, credit card is better than debit card, provided you pay your bills on time. Even general spending cards like standard chartered unlimited card gives 1.5% cashback. There are also specific cards like OCBC Frank card, DBS Live fresh that beats your 1% debit card rebate hands down, but with minimum spend requirement. Do note that income tax and insurance spend (usually) do not count towards minimum spend.
Most cards offer annual fee waiver for the first few years. Thereafter, they will automatically waive if your spend is high enough, or you just have to call in to request to waive. In the unlikely event they choose not to waive, then you can just cancel the card.
Yes, it will help you a lot since you seem to have a min monthly expense! Credit cards can offer higher cashback, miles or points because you are a regular spender. Also, credit cards are likely to have promos with various merchants too.
If you spend regularly, it should be easy to call or digitally apply for a waiver each year.