So you’ve been saving up your annual leave and spending every hour searching for cheap air tickets online. And now, it’s time to embark on well-deserved overseas holiday. But before you blow the rest of your cash on your trip, make sure you get yourself one of these best travel credit cards in Singapore.
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“Wait, why can’t I just use my usual credit card?” you ask. You can, of course, but you should first check the T&Cs. Not all credit cards give you the same generous cash rebates or rewards points on overseas spending.
Another reason you might want to get a dedicated travel credit card is that the foreign currency transaction fee (which varies from bank to bank and sometimes even credit card to credit card) may erode whatever rebates you’re currently getting.
In short: Use the wrong credit card on holiday, and you’ll come back to a depressing credit card bill. Let’s see which credit card is best for travel.
Two major credit cards offered by Malaysian bank CIMB offer some of the best benefits for avid travellers. However, you might consider using them together. Use the CIMB Platinum Mastercard to pay for hotels, flights, travel packages, Grab/Uber rides, and spas. Supplement it with the CIMB Visa Signature for online travel spending (like Klook and Agoda) and when you’re wining and dining overseas.
Plus, there’s no harm hanging on to both, because CIMB doesn’t charge annual fees for these cards.
CIMB also used to offer the lowest foreign currency transaction fees in town of just 1 per cent, but as of 23 Nov 2018, CIMB has pushed it up to 3 per cent. That works out to be a nett rebate of 7 per cent, which still beats the competition.
On the other hand, CIMB’s upcoming changes make it easier to hit the juicy 10 per cent (or 7 per cent rebate). Previously, the minimum spending requirement was rather complicated and required quite a bit of micromanaging. But now, you just need to hit a minimum of $600.
The one thing you need to be careful about is that each category cashback is capped at $50 a month. The total cashback you can get each month is $100, which is still very generous.
Key features:
- 10 per cent cashback on dining & nightlife, online transactions (CIMB Visa Signature)
- 10 per cent cashback on flights, hotels, travel agencies, spas, salons, transport (CIMB Platinum Mastercard)
- 3 per cent foreign currency transaction fee
- Minimum spend $600 in a month
- Total cashback cap $100, but sub-cap of $50 applies per category
What’s often overlooked about this card is that their generous 8 per cent cashback on weekend dining, entertainment and Grab rides apply overseas too. That makes the UOB YOLO Card a terrific choice for swiping on weekend getaways to nearby places like JB, KL, Batam, Bintan and Bangkok. (On weekdays, the rebate drops to 3 per cent.)
Do your hotel and flight bookings online and you’ll get a 3 per cent rebate on them too, making it a good all-rounded travel credit card without the onerous minimum spending requirement.
Key features:
- 8 per cent cashback on dining, entertainment, Grab on weekends
- 3 per cent cashback on dining, entertainment, Grab on weekdays
- 3 per cent cashback on online travel bookings
- 2.8 per cent foreign currency transaction fee
- Minimum spend $600 in a month
- Cashback cap $60
Always jetting to the Mainland to visit your WeChat buddies and to stock up on Xiaomi electronics? Then the BOC Zaobao Card should be your go-to travel credit card for China. It gives you a cool 5 per cent rebate on all your spending and 0 per cent transaction fees for renminbi. Plus, it’s a UnionPay credit card so there’s no chance of it being declined.
Oh yes, there’s a minimum spend of $600 a month, but since the card can be used to pay for your hotel too, it shouldn’t be an issue.
Key features:
- UnionPay credit card
- 5 per cent cashback on transactions in mainland China
- 0 per cent transaction fee for RMB (other currencies 3 per cent)
- Minimum spend $600 in a month
- Cashback cap $80
BOC’s Qoo10 Mastercard also makes a pretty good travel credit card (and not just for travelling to China). You get a 5 per cent Qmoney rebate on all overseas spending. Sure, Qmoney isn’t quite a good as real money, but since most other cashback cards have caps of $60 or $80, you’ll get a better deal with this card if you’re spending a lot.
Let’s say you take this credit card on your obligatory year-end Europe family trip and you spend a rather painful $10,000. At least you’ll have $500 of Qoo10 credits to console you when you get back to Singapore.
Key features:
- 5 per cent Qmoney rebate on overseas spending
- 3 per cent foreign currency transaction fee
- Minimum spend $600 in a month
After all these generous rebates, the standard 1.5 per cent offered by American Express True Cashback Card is bound to seem rather stingy. However, you get a bumped-up 3 per cent cashback in the first 6 months of card membership. This is good for up to $5,000.
Note that the 2.5 per cent foreign currency fee will erode some of the rebate though. Also, Amex isn’t as widely accepted worldwide as Visa/Mastercard, so it’s suitable only for certain destinations.
Key features:
- American Express card
- 3 per cent cashback on all spending for first 6 months up to $5,000
- 1.5 per cent cashback subsequently
- 2.5 per cent foreign currency transaction fee
- No minimum spend
- No cap for 1.5 per cent cashback
Despite being a totallu non-mainstream card – we’re not even sure who banks with the Industrial and Commercial Bank of China – the ICBC Global Travel Mastercard is an online forum favourite.
It’s one of those unlimited cashback credit cards with no minimum spend and no cap, meaning you can earn 3 per cent cash rebates on your overseas spending forever and ever and ever.
Key features:
- 3 per cent cashback on overseas spending
- 2.5 per cent foreign currency transaction fee
- No minimum spend
- No cap
As the 3rd BOC credit card to make it on the list, it seems like China banks are absolutely killing it with their travel offerings. The BOC Elite Miles Card launched in 2018 has an overseas spending promo rate that is insanely high. $1 = 3 miles is impressive compared to the usual $1 = 2 miles.
The only things to be wary of are that BOC points expire within a couple of years, and converting them to miles costs $30 rather than the usual $25. It has just increased its foreign transaction fee from 2.5 per cent to 3 per cent from 15 January 2019.
Key features:
- $1 = 3 miles subsequently
- 3 per cent foreign currency transaction fee
- No minimum spend
- No cap
If you’re looking for a miles card with a bit more longevity, try opting for the Citibank PremierMiles Card, since Citi Miles don’t expire. The accrual rate is $1 = 2 miles after the previous promotion of $1 = 2.4 miles ended on 31 Dec 2018.
Key features:
- $1 = 2 miles
- 3 per cent foreign currency transaction fee
- No minimum spend
- No cap
The UOB PRVI Miles Card used to be the miles market leader with the best overseas spending earn rate of $1 = 2.4 miles, until BOC launched its miles card and Citibank caught up.
Even as Citibank’s accrual rate has gone back down to $1 = 2 miles, some mile chasers still prefer Citibank as you earn points for every $1 charged on your Citibank credit card while for UOB, you earn points for every $5 block.
While this credit card is great for its overseas earn rate, be warned. UOB charges a higher-than-usual foreign currency transaction fee for the PRVI Miles than for its other cards:
Key features:
- $1 = 2.4 miles overseas
- 3.25% foreign currency transaction fee
- No minimum spend
- No cap
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A version of this post first appeared on MoneySmart .