How to Choose the Right Credit Card in 2025

Locally, various credit cards offer a wide array of perks, rewards, and promotions so choosing the right one can either enhance or erode your financial well-being. With so many options available, selecting one that aligns with your lifestyle, spending habits, and financial goals, especially for those just starting out can feel overwhelming. Here’s a quick guide for consideration for your unique needs.

1. Understand Your Spending Habits

Before applying for a credit card, take a closer look at your current spending patterns and upcoming needs. The key is to identify where you spend the most now and in future, as this will help you select a card that maximises rewards or savings.

Key Spending Categories:

• Dining & Entertainment: Do you frequently dine out at restaurants, cafes, or bars? Look for cards offering dining discounts, cashback, or bonus rewards points.

• Groceries: If you spend a lot on groceries, opt for a card that provides cash back or rebates at supermarkets like NTUC FairPrice, Cold Storage, Giant or Sheng Siong.

• Travel: Frequent travelers should consider cards with air miles programs, airport lounge access, and travel insurance perks.

• Online Shopping: Shop often on platforms like Lazada, Shopee, or others? Find a card with cashback or rewards tailored for e-commerce.

• Utilities and Bills: Cards offering rebates on recurring expenses like utilities, telco bills, and insurance premiums are ideal for households.

By knowing where your money goes, you can pick a card that offers the most value for your spending. In addition, think about whether the account should be linked with your salary crediting and other giro amounts to get higher bonuses coupled with credit card spend.

2. Identify Your Lifestyle Needs

Your lifestyle plays a huge role too. Various cards cater to different needs, so think about what matters most to you.

Lifestyle-Specific Cards:

• Travel Enthusiasts: Look for travel rewards credit cards that earn air miles for local and foreign dollars spent. Some also offer perks like free lounge access and airport transfer so keep an eye on these perks for a better holiday experience too.

• Foodies: Some cards provide more dining-related perks like cashback or bonus rewards at restaurants and food delivery services.

• Shopaholics: If you love shopping, pick a card that offers cashback, rewards, or discounts at retail stores or online platforms.

• Families: Families may benefit from those cards that offer rebates on groceries, transport, and utilities.

• Others: Planning for a wedding, renovation and a new house? Or planning to spend on your higher education or new kid on the way? These lifestyle changes will also affect your choices.

3. Consider Financial Goals

Your credit card should support your financial goals, whether it’s saving more, earning rewards, or building credit.

Financial Goal-Oriented Cards:

• Building Credit History: If you are just starting to use credit cards, consider entry-level cards with low annual fees from reputable banks to establish a good credit score.

• Maximising Savings: Cashback cards are great for those who want instant savings on daily expenses.

• Earning Rewards or Miles: If you are saving for a big trip or high-value rewards, choose a card with a strong rewards program. This is also ideal for shoppers who like redeeming gifts, vouchers, or travel rewards. Air miles are better for frequent travellers who want to offset flight costs or enjoy travel perks.

4. Compare Interest Rates and Fees

While credit card perks are appealing, it’s important to understand the costs associated with them.

Things to Look Out For:

• Interest Rates: If you don’t pay your balance in full each month, interest rates can quickly erode any rewards earned. Choose a card with competitive interest rates if you anticipate carrying a balance.

• Annual Fees: Some cards have annual fees that can outweigh the benefits, especially for casual spenders. Check if the card offers fee waivers or if the perks justify the fee.

• Foreign Transaction Fees: If you travel often or shop on international websites, consider cards with low or no foreign transaction fees.

5. Look for Promotions

Credit card issuers often provide exclusive promotions for new applicants, such as sign-up bonuses, cashback rebates, or complimentary gifts. Take advantage of these offers to maximise your value. However, ensure that the long-term benefits of the card align with your lifestyle, not just the short-term perks. Each card has its pros and cons, depending on how you prefer to use your rewards.

6. Evaluate Additional Benefits

Beyond rewards and cashback, some credit cards come with extra perks that could enhance your experience. Look for benefits like:

• Travel insurance coverage

• Complimentary airport lounge access

• Free rides with Grab or other services

• Dining privileges and exclusive deals

7. Assess Your Eligibility

Before applying, check if you meet the eligibility requirements for the card:

• Income Requirements: In Singapore, most cards have a minimum annual income requirement (e.g., S$30,000 for locals or S$40,000 for foreigners).

• Credit Score: A good credit score increases your chances of approval. Avoid applying for multiple cards at once, as this can negatively impact your score and also affect the amount of loan you can get.

Conclusion

Choosing the right credit card is about finding the balance between your spending habits, lifestyle needs, and financial goals. Take the time to analyse your expenses, compare card benefits, and consider the costs before making a decision. With the right card in hand, you can enjoy significant savings, rewards, and perks while managing your finances effectively. However, if you are already unable to manage your current card, please do not get more.

Ultimately, the credit card for you is one that not only complements your lifestyle but also empowers you to achieve your financial goals. Choose wisely and swipe smart!

Cast Your Financial Spells Wisely,

Value Vaulter