Tips on Choosing The Right Credit Card

Key Takeaways

• 1. Choosing the right credit card that suits your lifestyle, spending habits, and financial goals is important.
• 2. Ways of assessing the right credit card and mistakes to avoid.
• 3. Find out which Citi credit card is more suitable for you.

How to Choose the Right Credit Card

There is no lack of choice when it comes to credit cards. With each offering attractive rewards on top of highly attractive signup bonuses, choosing a credit card can feel daunting, especially if it is your first time applying for one.

Between comparing the benefits and the potential savings earned, credit card applicants should also consider factors like lifestyle when deciding if a credit card is suitable for them. It will also be prudent to read The Association of Banks in Singapore’s consumer guide to credit cards.

Does it Really Matter Which Credit Card You Get?

Before we deep dive into the points for consideration, it is worth contemplating if there even are differences between credit cards.

Each credit card comes with its own unique deals, promotions and privileges that cater to specific spending needs and preferences.

If you are a frequent traveller, for example, an airmiles earning credit card might be more useful to you than, say a cashback card in terms of the rewards and privileges.

Even between airmiles earning credit cards, there might be differences in earning to conversion rates, as well as additional perks you might be entitled to.

Hence, doing some research before signing up for a credit card could help you reap savings cumulatively in the long run.

How Can You Find a Credit Card Best Suited to Your Needs?

Working backwards is the trick here. With such a diverse selection of credit cards to pick from, consider the following before diving in:

1. Lifestyle And Spending Habits

Building on the example above, an awareness of how you spend can inform your choice of credit card.

Travellers might prefer a dedicated travel credit card like the Citi PremierMiles Card¹. Whereas avid shoppers might find more value from using a cashback card, like the Citi Cash Back Card², to enjoy savings on everyday spends. You may refer to the links set out above to find out more about each credit card, fees and applicable terms.

2. Rewards And Privileges

Perhaps one of the favourite perks of owning a credit card for many is the rewards earned from spending. Given the multitude of credit cards, rewards programs are uniquely designed to accelerate how a particular reward is reaped.

Knowing how you want to be rewarded can help you decide which credit card to apply for.

For example, all Citi Cardmembers enjoy a host of privileges for dining, shopping and travel. However, the Citi Cash Back Card, for example, enables you to earn more cash back with a lower minimum spend. Please refer to the link set out above for more details on the Citi Cash Back Card and how cash back is earned on it, including the applicable terms and conditions.

3. Know What You Can Afford

Owning a credit card is a financial responsibility you undertake. Hence, before you sign up for a credit card, take time to read the fine print. For example, does the credit card have an annual membership fee? Can you afford it? Take note that the annual fee for each credit card is not the same. This knowledge could impact which credit card you choose.

What Should You Avoid When Choosing a Credit Card?

One can be spoilt for choice with all the credit cards out there. Rather than treating them as collectibles, being selective about whether a card truly meets your lifestyle and financial goals is often a better approach.

Try to avoid picking a card just because of its irresistible sign-up bonus or gift. Beyond the initial gratification, the card may turn out to be unsuitable for your lifestyle needs.

Besides, the usually high level of initial spending to qualify for a sign-up incentive may prove to be out of your reach.

Something else to note is the inertia to change our credit card when the value it offers dwindles. This could mean lower cash back, or less attractive spend-to-earn ratios. We may feel reluctant to shop around for other cards or dismiss alternatives, assuming that our existing card is the best for us.

Credit card rewards and features are always changing. Do your homework on different cards occasionally and you may be surprised at what you’re missing out on with other cards. This is especially so if your spending habits or financial goals change in between life stages.

Choosing the Right Credit Card

Here’s a selection of Citi’s best credit cards, no matter if you’re still starting out or a seasoned card connoisseur.

What’s more, you can redeem rewards easily on your Citi Mobile^® App or Citibank Online.

Credit cards are a dime a dozen these days, but it’s vital to choose a right one that can go the distance with you.

Sign up for a Citi Credit Card and be rewarded with exciting welcome offers if you are new to Citi credit cards! T&Cs apply.

Existing Citi Credit Card holder? Refer a friend and get up to S$150 cash for your successful referrals.

Disclaimers

Terms and conditions apply for Citi credit cards and rewards mentioned above.

1. View terms and conditions for the Citi PremierMiles Card.

2. View terms and conditions for the Citi Cash Back Card.

3. View terms and conditions for the Citi Clear Card.

4. View terms and conditions for the Citi Cash Back⁺ Card.

5. View terms and conditions for the Citi Rewards Card.

6. View terms and conditions for the Citi Prestige Card.

This article is for general information only and is not intended to be a forecast of future events nor a guarantee of future results and should not be relied upon as financial advice. All views and opinions are as of the date hereof, and are subject to change based on market and other conditions without notice. The article has no regard to the specific objectives, financial situation and particular needs of any specific person. It is neither an offer nor a solicitation to purchase, nor endorsement or recommendation of any products or services mentioned therein, and the products or services mentioned may or may not be offered by Citibank Singapore Limited, its related entities and their respective directors, agents and employees (together "Citigroup").

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