Credit Card for Different Stage in Life

By ShareInvestor

The best credit card for different stages of your life

Virtually everyone has a credit card these days.

Some even have multiple cards to get the best mileage on the deals and promotions that these cards come loaded with.

As you go through life, you are almost certain to switch credit cards. Sometimes, this is due to your increased income level qualifying you for more exclusive cards. Otherwise, it could be simply that priorities change and you want a card that is more relevant in terms of rebates, cashbacks or discounts for certain expenses that have become important to you at a particular point in time.

We've put together the best credit cards for different phases of your life - from the time you are a tertiary student to the time you retire.

Still schooling:

It used to be that you needed to have a certain level of income before banks would issue you with a credit card. But youths can apply for a card now with the DBS Live Fresh Student Card. To qualify, you must be a student at a local university or polytechnic and be between the ages of 18 and 27. The annual fee, $128.40, is waived for five years and there is also a cashback of 0.3 per cent on all amounts charged, with no minimum spend required.

Just started work:

Young adults who have just started work would generally prefer credit cards with annual fees waived, at least for the first one or two years.

There are plenty of cards to choose from, each offering benefits in different areas, depending on an individual's preferences.

Many in this age group would also look at how much a credit card can give them in terms of rebates on big spends such as shopping, dining and entertainment.

For dining privileges, high-end credit cards such as the Visa Infinite offered by HSBC and Standard Chartered offer the best dining deals, but these are out of reach of the average Singaporean. Alternatively, the Citi Cash Back Card offers up to 8 per cent rebate on dining anywhere in the world and even applies to food and groceries delivery. The American Express Platinum Credit Card and UOB One Card also offer very good discounts of up to 50 per cent off meals.

Cards like the Citi Rewards Card, UOB YOLO Credit Card and HSBC Visa Platinum Credit Card are great for movie buffs. The YOLO card, in particular, offers a wide range of benefits at various cinemas. For example, cardholders get up to 10 per cent rebates at Cathay Cineplexes and can buy four tickets at the price of three at Golden Village.

If partying is more your thing, then you need cards such as the American Express Platinum Credit Card, HSBC Revolution Credit Card, the YOLO card (yes, again) and various cards catered specifically for women, which give you priority entry and discounts at pubs and clubs.

In terms of shopping, the Standard Chartered Spree Credit Card is one of the best cards to have as it offers cashback on money spent in Singapore, overseas and online too. For purchases in foreign currency, you get 10 per cent cashback, one of the highest offered by any card. To top it off, the Spree card comes with a two-year fee waiver and if you spend above $900 a month on your card, you get 20 per cent cashback on your Uber rides too.

If you are the type who prefers not to have too many credit cards, the YOLO card is probably the best card to have as it covers almost all the bases - dining and entertainment (up to 16 per cent rebates on weekend spend) as well as shopping rebates too.

Married with kids:

Those who have started a family may need credit cards which offer them good rebates for groceries and petrol for the family car.

After all, milk powder and diapers are among the costliest household items.

The best cards to bring to supermarkets are the UOB Delight Card and the Citi Cash Back cards, which both offer up to 8 per cent rebates on groceries at selected supermarkets like Cold Storage, Jasons and Giant.

If NTUC Fairprice is your supermarket of choice, then go for the OCBC Plus! Visa Credit Card, which offers 7 per cent rebate.

Many married couples find they need to get a car when they have children. And while credit cards do not have special deals with car dealers, a big chunk of the cost that comes with having your own car is petrol.

Many credit cards offer great discounts at petrol stations, ranging from 14 per cent to as high as 25 per cent. However, most cards offer discounts only with one chain of petrol stations, so if you are picky about which petroleum company you use, then pick the right card. Some cards now offer discounts at two different petrol stations to give customers more flexibility.

Retirees

When you have stopped working and there is a drop in income, you need cards which offer you good cashback.

Here, the UOB YOLO card is one of the top choices as well, with up to $60 in rebates a month. The Citi Cash Back card offers rebates of up to $100 across four categories - dining, Grab rides, petrol and groceries (capped at $25 per category), so this is good if you spend in all these categories regularly.

The American Express True Cashback Card is also worth considering as it offers an unlimited cashback unlike other cards. The rate of 3 per cent applies to the first $5,000 spent in six months, and thereafter, the rate drops to 1.5 per cent. The Standard Chartered Unlimited Cashback Credit Card also has no cashback cap per month and offers rates of 1.5 per cent. These cards are good if you plan to make big purchases on them.

If you are the type who wants to travel the world during your retirement, then you need a card that gives you the best returns in terms of air miles.

The Citi PremierMiles Visa Card offers great value, with 1.2 Citi Miles for every $1 spent locally and 2 Citi Miles for every $1 spent overseas. Spend on this card while abroad and it could well pay for your next flight. 1 Citi Mile translates to 1 mile on major airlines such as Singapore Airlines, Qatar Airways and Qantas. The card also offers other travel benefits like Priority Pass lounge access and complimentary travel insurance.

Another travel card to consider is the UOB PRVI Miles Card, which has rates of 1.4 miles and 2.4 miles for $1 spent locally and overseas respectively.