Thursday, August 3, 2017

Best Credit Card for Big Ticket Expenditures

Many friends ask the question, "What is the best credit card for my big purchase?"

I have been following the various credit card product offerings in the market and these are my conclusions:

1. Standard Chartered Manhattan World
3% cashback if you meet $3,000 minimum spend for the statement period. Capped at $200 per quarter. Spend $6,667 in a statement period to reap the maximum benefit.

2. Standard Chartered Unlimited Card
1.5% cashback with no minimum spend and no caps.

BONUS: Standard Chartered has a $138 cash award for new to bank sign ups.

3. UOB Priv Miles Amex
This is not a direct cashback card. The earn rate is 1.4 miles per dollar spent (awarded in the form of 3.5 UNI$ per $5 spent). The effective rebate is about 3% if you value each mile at 4 cents. You also get an additional 20,000 miles if you hit $50,000 during the membership year. The UNI$ earned can be used to redeem other things like vouchers if you do not want miles, though the effective rebate would be less. Ideal for big wedding banquets where you hit $50,000 spend. The miles earned can be redeemed for a honeymoon trip.

There are other cashback and reward cards out there but I find that they are more suitable for day to day spending due to spend category restrictions and low cashback caps. I will write about them another day.

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