Credit Card Optimization Guide
Master the art of credit card rewards in Singapore. Learn to maximize miles vs cashback, avoid fees, and build excellent credit.
Miles vs Cashback: Making the Right Choice
The 80/20 Rule
80% of credit card users should choose cashback for simplicity and guaranteed value. Only 20% should pursue miles if they travel frequently and understand redemption optimization.
Choose Cashback If:
- • You rarely travel (less than 2 trips/year)
- • You prefer guaranteed, immediate value
- • You don't want to track expiry dates
- • You spend less than S$2,000/month
- • You want simplicity in rewards
Choose Miles If:
- • You travel 4+ times per year
- • You can hit minimum spending requirements
- • You understand redemption strategies
- • You spend S$3,000+ per month
- • You want premium travel experiences
Decision Framework
Your annual travel spend vs potential miles value
Cashback rate vs miles redemption value
Stick to your choice for maximum optimization
Top Cards by Category
Best Cashback Cards
| Card | Cashback Rate | Best Categories | Annual Fee |
|---|---|---|---|
| OCBC 365 Credit Card | Up to 6% | Dining, Transport, Groceries | S$196.20 |
| DBS Live Fresh Card | Up to 5% | Online, Contactless | S$196.20 |
| UOB ONE Card | Up to 5% | Dining, Online Shopping | S$196.20 |
| Citi Cash Back Card | Up to 1.6% | All Purchases | S$196.20 |
Best Miles Cards
| Card | Miles Rate | Best Categories | Annual Fee |
|---|---|---|---|
| DBS Altitude Visa Signature | 1.2 mpd | General | S$196.20 |
| OCBC 90°N Card | 1.2 mpd | General | S$196.20 |
| UOB KrisFlyer Credit Card | 1.4 mpd | Online, Foreign | S$196.20 |
| American Express Gold Card | 2 mpd | Dining, Groceries | S$321 |
Reward Maximization Strategies
Single Card Mastery
Focus on maximizing one high-earning card
Category Optimization
Multiple cards for different spending categories
Sign-up Bonus Cycling
Strategic applications for welcome bonuses
Advanced Optimization Techniques
Category Rotation Strategy
- • Use different cards for different categories
- • Track bonus category schedules
- • Maximize 5% categories when available
- • Use general spend cards for non-bonus categories
Timing Optimization
- • Apply for cards before major purchases
- • Time applications to avoid credit score impact
- • Use sign-up bonuses for planned expenses
- • Cancel cards before second annual fee
Annual Fee vs Benefits Analysis
Break-even Calculation
A card with S$196 annual fee needs to provide at least S$196 more value than a free card to be worthwhile.
For Cashback Cards:
If a premium card gives 3% vs free card's 1%, you need S$9,800 annual spend to break even.
For Miles Cards:
If premium card gives 1.4 mpd vs free card's 0.4 mpd, you need S$19,600 annual spend.
Hidden Benefits to Consider
Travel Benefits
- • Airport lounge access
- • Travel insurance coverage
- • Hotel elite status
- • Free checked bags
Lifestyle Benefits
- • Dining privileges
- • Shopping discounts
- • Entertainment perks
- • Concierge services
Financial Benefits
- • Purchase protection
- • Extended warranties
- • Price protection
- • Fraud protection
Building & Maintaining Excellent Credit
Credit Score Factors
Optimization Rules
- • Keep utilization below 30% (ideally under 10%)
- • Never miss payment deadlines
- • Keep old cards active with small purchases
- • Limit new applications to 2-3 per year
- • Pay balances before statement generation
- • Monitor credit reports quarterly
Common Credit Mistakes to Avoid
High-Impact Mistakes
- • Late or missed payments
- • Maxing out credit limits
- • Closing old credit accounts
- • Applying for too many cards quickly
Medium-Impact Mistakes
- • Only making minimum payments
- • Ignoring credit report errors
- • Not using credit cards regularly
- • Carrying balances month-to-month
Your Credit Card Action Plan
Assess Your Spending
Track your monthly expenses by category to identify optimization opportunities.
Choose Your Strategy
Decide between cashback and miles based on your travel frequency and spending patterns.
Compare Options
Use our comparison tool to find the best cards for your specific needs and spending.
Compare Cards →Optimize & Monitor
Implement your strategy and regularly review performance to maximize rewards.