Advantages of Cash Back Credit CardsCash back is an incentive, offered by the card issuer to the cardholders, that returns a percentage of the total amount charged on the card in the form of cash. No wonder such cards are becoming increasingly popular amongst Singaporeans!

The cash back incentive will depend upon various factors including spend category, total amount spent per billing cycle, caps on cash back etc. Cash back may be returned in the form of cash, check or by a credit to the credit card account. Lets take a look at some of the advantages of cash back credit cards:

Earn money

Cash back cards are the only type of cards that earn money for you. You get back a portion of what you spend; this portion is denoted in percentage points, for e.g. 5% cashback. Cash back is money in your pocket. You can use this to pay off your card spends or you can choose to save it.

Cashback vs Rewards Points

To put it very simply, it is easier to get cash back than redeem rewards points for gifts. This is because to redeem something really worthwhile one must have accumulated a fairly high number of points, i.e, one must have spent quite a bit. Cash back is available at lesser spends and one gets to see the benefit in the form of cash, making them seem like the better option.

Earn Rewards Points

In addition to earning cash back, many cash back cards also provide you with the facility of earning reward points. The reward points in turn can be accumulated and redeemed against future spending, for buying vouchers or even for paying off card spends.

Cash back for supplementary cards

The benefits of cash back need not be restricted to you. You can get supplementary cards issued and share these benefits with your family members too. As spends on the applicable categories (from both the principal and supplementary cards) increase, cash back rewards too get maximized.

Additional perks

Cash back need not stop only at earning you some cash back. A cash back card like the Citibank DIVIDEND World MasterCard also rewards you with an unmatched range of perks and privileges. These include a large selection of dining deals across Singapore, spa benefits, exclusive complimentary memberships, hotel and other travel benefits and privileges.

Maximizing Cash Back

Cash back rewards tend to be limited to certain categories of spends and have caps on the amount of cash back that can be earned. If you have analyzed your spending patterns well, you can actually go in for multiple cash back cards. This way you can earn more cash back than is possible with just one card. More power to you!