How to make the most of credit card rewards

Heard your friend flexing their free flight to Seoul using credit card miles? Or maybe you saw someone brag about earning cashback just from buying groceries.

Yup, credit cards can actually give you money back.

Before we dive in: this isn’t about encouraging you to spend more. It’s about making your existing spending work harder for you. Earning credit card rewards may feel like a win, but it’s only worth it if you’re already spending within your means. Spending extra just to hit minimum requirements or unlock points can lead to credit card debt, which wipes out any benefit you were hoping to gain. If you’re paying interest on stuff you didn’t need in the first place, those rewards aren’t really rewards: they’re just expensive bait.

How credit card rewards work:

• Cashback: A percentage of what you spend is returned to you, usually monthly.
• Miles: Earn points that can be converted into airline miles, which will get you travel perks like cheaper flight bookings, seat upgrades, and discounts for hotels.
• Rewards points: General points you can redeem for vouchers, gadgets, or even MRT rides.

Sounds good? Here’s the catch - banks only reward certain types of spending, and often with conditions.

How to actually win at the rewards game:

1. Pick one reward — cashback, miles, or points
   Don’t spread yourself too thin. Choose a card that gives the best rewards for your usual spending (like food, online shopping, or transport).
2. Read the fine print
   Many cards require you to hit a minimum spend (like $600/month) to unlock rewards. Some even cap your cashback at $50/month. Decide if this is reasonable. If you usually spend only $300 a month while the card requires a $500 minimum spending, then you’re not likely to get the rewards.
3. Avoid reward traps
   Spending more just to earn rewards often backfires. Don’t blow $300 on a new pair of sneakers that you cannot afford just to earn a few dollars of cashback. That’s a classic example of letting the tail wag the dog.

Reward stacking hacks:

• Use your credit card with other promos like Shopee vouchers.
• Some cards offer extra cashback for certain apps (e.g., Foodpanda, Deliveroo) - perfect for your makan sessions.

Of course, it’s also okay if you don’t intend to use rewards. They’re not a must-have, just a nice-to-have. You’re not missing out if you choose to keep things simple.