Cashback vs Miles vs Rewards: Which Is The Best Type Of Credit Card For You?

Cashback: Citi Cash Back Card | Citi Cash Back+ Card | CIMB Visa Signature Card | CIMB World Mastercard | Maybank Friends & Family Card | UOB EVOL Card | UOB One Card | UOB Absolute Cashback Card | OCBC 365 Card | HSBC Visa Platinium | Standard Chartered Simply Cash Card

Miles: Citi PremierMiles Card | Maybank Horizon Visa Signature Card | UOB PRVI Miles Card | OCBC 90°N Card | KrisFlyer UOB Card | American Express Singapore Airlines KrisFlyer Ascend | DBS Altitude Visa Card

Rewards: Citi Rewards Card | HSBC Revolution Card | UOB Lady's Card | UOB Lady's Solitaire Card | OCBC Titanium Rewards Card | DBS Woman's World Card | Standard Chartered Rewards+ Card

When it comes to credit cards, your spending habits and personal preferences take the front seat. Whether you enjoy travelling in style, or if simply want cash in your pocket, there’s a card for you. Here’s a look at the three main types of credit cards and the promotions available.

A cashback card is the most straightforward when it comes to earning rewards for your credit card spend. With a cashback card, you get rewarded with cash credited into your credit card. These cash credits can be used to help you offset your next purchase.  

• If you think cash is king. You are rewarded with cash in your credit card that can be used immediately, on your next purchase, whatever that might be. 
• If you don’t spend much. You still enjoy cashback regardless of the size of your spending, and the cashback cap doesn’t bother you. 
• If you prefer immediate gratification. Your cashback is credited into your credit card each month. On the other hand, miles and rewards cards require months or even years of miles/reward points accumulation before you can redeem something substantial.

• Cashback rate: How much cashback will you be earning? 
• Categories with higher cashback rate: Which category spend will give you more cashback? 
• Minimum spend: How much will you need to spend each month to earn this cashback? 
• Cashback cap: What’s the maximum amount you can earn in cashback for each category every month? 

Check out the cashback cards listed below or read this article to find the best cashback cards in Singapore.

A miles credit card rewards you with miles for every dollar spent. These accumulated miles can be used to redeem flights in the future, be it economy class, business class or first class. Naturally, the further the destination, the more miles are required. 

• If you love to travel. There’s nothing like redeeming your hard-earned miles for a ‘free’ flight. If you enjoy travelling, chasing miles can be a very rewarding journey. 
• If you want to experience travelling in luxury. Can’t bear to pay the premium for a non-economy seat? A miles card could be your chance to earn yourself a first-class ticket on a carrier like Singapore Airlines. Some miles credit cards also come with free lounge access. 
• If you have big-ticket purchases coming up. Miles require spending in order to accumulate sufficient miles. A big-ticket purchase is a chance for you to supercharge your miles journey, especially with the bonus miles promotions some credit cards offer. 

• Miles earn rate / miles per dollar (mpd): How many miles will you earn per dollar spent? 
• Categories with higher miles earn rate: Which categories will give you more miles for your spending? 
• Annual fee: How much is the annual fee and should you pay the annual fee?  
• Airlines partners: Which frequent flyer programmes does the bank have on board? For example, Krisflyer miles can only be used for carriers under Singapore Airlines. 

Check out the miles cards listed below or read this article to find the best miles cards in Singapore, or check out these credit cards for first-time miles chasers.

Maximise your budget holiday spend even further with the best air miles credit cards and best credit cards for travelling in Singapore. Get rewarded whenever you spend locally or overseas, plus access awesome perks like airport lounges, discounted travel insurance rates, and even free gifts for first sign ups!

A rewards credit card gives you reward points for your credit card spend. These reward points can be used to redeem a gift of your choice from the rewards catalogue. You’ll find that they usually revolve around cash vouchers for department stores, supermarkets, petrol stations, restaurants and more. 

Many rewards cards also double as miles cards, allowing you to convert your points into miles from one of the bank’s frequent flyer programmes. This makes rewards cards a versatile tool for you shuttle between miles and rewards depending on your whims. 

• If you prefer gifts over cash. You can use your points to directly redeem a gift for yourself from the rewards catalogue. Otherwise, redeeming vouchers allows you to reward yourself by purchasing a gift of your choice.  
• If you are undecided about what type of reward you prefer. You can still exchange your reward points for miles or cash credits in the future. 
• If you want a gift that can be given to others. Your reward points can be exchanged for cash vouchers to be used at participating merchants, such as restaurants, grocery stores, petrol stations and more.

• Rewards earn rate: How many reward points will you be getting per dollar spent?
• Categories with higher reward points given: Which categories will give you more points for your spending? 
• Variety of rewards catalogue: How extensive is the bank’s rewards catalogue? Does it have rewards that you will want to redeem? 

Check out the rewards cards listed below or read this article to find the best rewards cards in Singapore.

Here’s a thought: there is space for more than one credit card in your wallet! 

Choosing one type of credit card doesn't mean that you can’t hold another; the trick to maximise returns on your credit card spend is to hold multiple credit cards (responsibly), with each credit card serving a specific purpose. 

For example, you might use the Citi Rewards card for your online spend, but opt for the CIMB Visa Signature for grocery spend while using the UOB PRVI Miles for all other spend. However, keep in mind that with more credit cards also comes more bills to keep track of and pay. By trying to meet the minimum requirements across all your cards, you might unknowingly be expanding your expenditure more than necessary every month, which adds up to a lot in a year.

If you are looking for a credit card that helps you optimise savings for spending in a specific category, you can check out these guides: 

• Credit cards for online shopping
• Credit cards for grocery shopping
• Credit cards for dining
• Credit cards for shopping
• Credit cards to use as your EZ-Link Card
• Credit cards to use for Grab
• Credit cards to pay utility bills

Looking for the best credit cards to complement your spending patterns and expenditure in 2024? Check out our Ultimate Credit Card Guide that covers all things credit cards in Singapore – from choosing between a cashback, miles, or rewards credit card to planning your credit card strategy.