Quick Guide on General and Dedicated Spend Credit Card Differences for Miles - Which Cards to Get?
There are generally two types of credit cards in Singapore - one offers cash rebates and the other offers miles (or points). Amongst all the credit cards that accrue miles and points, there are also two different types of cards - one is categorised as a general spending card (offering a number of miles for each dollar of eligible spend) while the other offers huge bonuses in certain categories (up to 4 miles per dollar typically) but miserable accrual rates for everything else.
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Generally speaking, 4 miles per dollar is the most you can get out of a credit card (of course there are promotions that run from time to time but let’s ignore these for now) and you can only achieve this with a dedicated-spend credit card (or a bonus-category credit card, however you may wish to call it). General spend credit cards usually offer fixed mileage accrual rates which are significantly lower than 4 miles per dollar.
What is the Deal with Dedicated-Spend Credit Cards?
In a perfect world, dedicated-spend credit cards like Citi Rewards Card and DBS Woman’s World Card (check out the full list of credit cards in Singapore that offers 4 miles per dollar!) offer 4 miles per dollar on all eligible transactions - these are the credit cards that you should hold if you want to get as many miles as quickly as possible. While dedicated-spend credit cards are great when you use them in bonus categories (since they give you 4 miles per dollar), they typically give you a miserable 0.4 miles per dollar (yes, 10X lesser) when you use them for the wrong occasions.
For example, the DBS Woman’s World Card (that men can apply for too) gives you 4 miles per dollar on all eligible online transactions up to a maximum of S$2,000 each statement period. Now if you were to spend S$2,000 on clothes online this month, you will get 400 DBS Points (equivalent to 800 miles) this month and the remaining 3,600 DBS Points (equivalent to 7,200 miles) in the following statement period. However, if you were to use the very same card at the same retail store physically, you will only end up with 400 DBS Points (equivalent to 800 miles) - no bonus miles will be awarded as the eligible transaction was not made online.
While dedicated-spend cards can give you 4 miles per dollar in the best-case scenario, they can also give you 0.4 miles per dollar (which is miserable) when you do not use them correctly (or if you have already reached the cap for the statement period) - check out all the quirks of dedicated-spend credit cards on The Shutterwhale Cards!
General Mileage Accrual Rate
Why Bother With General Spend Credit Cards?
Some of the most popular general spending credit cards in Singapore include the Citi PremierMiles Card and DBS Altitude Visa Card - both cards offer 1.2 miles per dollar on eligible local spend and 2.0 miles per dollar on eligible foreign currency (non-SGD) transactions. With dedicated-spend credit cards giving up to 4 miles per dollar, why should you then bother with a general spend credit card which offers only 1.2 miles per dollar?
Firstly, some people prefer convenience - general spend credit cards offer the same accrual rate for all eligible spend (even though foreign transactions typically attract a higher accrual rate). Secondly, there are some categories that are not covered by a dedicated-spend credit card. Even though dedicated-spend credit cards can offer up to 4 miles per dollar, using them incorrectly have dire consequences and if so, you are actually better off with a general spend credit card.
Total Miles Earned Based on Annual Spend
Looking at the chart above, when utilised correctly (meaning to say you charge the right categories of transactions to the card, and also keep to the caps and spend requirements for each card), S$12,000 spend over a year can translate into 48,000 miles (earning 4 miles per dollar). However, if you do not meet the requirements of the dedicated-spend card, you will only end up with 4,800 miles (earning 0.4 miles per dollar) at the end of the year. On the other hand, charging S$12,000 worth of eligible expenses to a general spend credit card will get you 14,400 miles (assuming an earn rate of 1.2 miles per dollar) which is nowhere near the maximum of 48,000 but it is also not as miserable as the 4,800 miles that you earn if you use the right cards wrongly.
With general spend credit cards, it is more straightforward and you know exactly how many miles you will earn with each transaction (with no cap and no requirements) - dedicated-spend cards require a little more work and you will have to keep track of bonus caps and requirements if any.
Which Credit Card Should You Get?
Obviously, if you wish to get the most number of miles in as little time possible, you should try to put most of your expenses on the right credit cards that will earn you 4 miles per dollar. While it does take some getting used to, the divergence in mileage accrual is significant and you can really see the difference at the end of the year. If you have no idea where to start, I highly recommend both the Citi Rewards Card and DBS Woman’s World Card as these are great cards that can offer you opportunities to earn 4 miles per dollar on daily expenses like shopping and online spend (including groceries and travel spend just to name a few). With that being said, everyone should also consider applying for at least one general spend credit card as there will be instances where you will not be able to earn 4 miles per dollar and therefore, charging these transactions to a general spend credit card makes a lot more sense (since you will earn 1.2 miles per dollar as opposed to 0.4 miles per dollar). I also highly recommend the DBS Altitude Visa Card as a general spending credit card as the points (which you can convert into miles) pool with the DBS Woman’s World Card, making it easier to convert your points into miles.
The Shutterwhale Mile-Chasing Starter Pack I
Citi Rewards Card - 4 miles per dollar on shopping and online spend (capped at S$1,000 each statement month)
DBS Woman’s World Card - 4 miles per dollar on all eligible online spend (capped at S$2,000 each statement month)
DBS Altitude Visa Card - 1.2 miles per dollar on local spend and 2.0 miles per dollar on foreign spend (no cap); 3 miles per dollar on online travel transactions (capped at S$5,000 per month)
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