Using only 1 credit card for all your spending

Why use only 1 credit card?

There are many reasons why someone would prefer to use only 1 credit card for ALL their spending.

Here are the problems that users face when they do not keep track of their credit cards:

1. Missed annual fees: You should not pay your credit card annual fees, most of the time. However, it can be troublesome to set multiple alerts to call the banks for annual fee waivers throughout the year. Forgetting to waive an annual fee will cause it to accumulate very high interest.

2. Scattered points/miles: Most banks require a minimum balance of points/miles in your account before you can transfer them out to a frequent flyer program of choice. This can be a hurdle for someone with a low monthly spending (<$1,000) across multiple cards from multiple banks.

3. Risk of Financial Embarrassment for civil servants: Civil servants in Singapore have a strict set of rules to adhere to to prevent “Financial Embarrassment”. Failing which would cause a negative impact on one’s career path as a civil servant (e.g. promotions and bonuses) in the future.

4. Newbies: If you are a fresh graduate who have just landed your first job, it is wise to start with only 1 credit card, in order not to get overwhelmed., especially if you are still accessing your financial discipline.

Common mistake

If you always wonder why you never have enough miles after spending tens of thousands of dollars over the years, it’s probably because you’ve been using a general spending Miles card!

Instead of earning the target 4 MPD, these cards mostly offer between 1.1 to 1.4 MPD. This means that you will have to spend 3 times more to earn the same amount of miles as a specialised card!

Examples of general spending “Miles” cards are:

• UOB PRVI Miles

• DBS Altitude

• Citibank PremierMiles

• AMEX Krisflyer

Credit cards that are marketed as “Miles” cards should only be used as a last resort in a multi-card miles-earning strategy.

THE credit card

HSBC Revolution Visa card went through major changes last year and I now see it as the best credit card in Singapore.

Here’s why:

1. No annual fees, ever.

2. Earn 4 MPD on 2 most popular spending categories, contactless and online, for your first $1,000 spending every month.

3. Earn miles from your first dollar, unlike UOB credit cards where you only receive points in $5 blocks.

4. Points expire 3 years after they are earned. (DBS and UOB points expire after 1 and 2 years respectively)

5. Points can be transferred to two major Frequent Flyer Programs (FFP): Singapore Airlines Krisflyer and Cathay Pacific Asia Miles.

6. Fantastic sign-up bonus for new cardholders of HSBC: Get $330 cash after spending $500 within the qualifying period (equivalent to 66% cashback).

7. Fantastic sign-up bonus for existing cardholders of HSBC: Get $60 cash after spending $500 within the qualifying period (equivalent to 12% cashback).

Note: You will earn just 0.4 MPD after exceeding the $1,000 monthly cap.

HSBC Revolution Card

Suitesmile card rating:

Sign-up bonus
(choose one)

$200 cashback,
Samsonite luggage

more infoChoose to receive $200 cashback or a Samsonite Prestige 69cm Spinner luggage (worth $670) when you successfully apply as a new credit card customer of HSBC.

To receive the sign-up bonus, a minimum spend of $500 is required by the end of the following calendar month, after card approval.

Existing HSBC cardholders (with cards issued more than 12 months ago) will receive $50 cashback after meeting the same minimum spend.

Key benefit

Earn 4 miles per dollar
or 2.5% cashback
for contactless and online

more infoEarn 10 points per dollar (equivalent to 4 MPD) on most contactless and online spending (travel, groceries, dining, shopping) for your first $1,000 every month. No minimum spend required.

Annual fee

No annual fee

more infoThis card does not have an annual fee.

Min. Income
requirement

$30,000/yr

more infoYou will have to submit prove of income during the application process.

Apply now

Why we like this card

We see the HSBC Revolution as the best credit card in Singapore as it offers a great earn rate of 4 MPD for key spending categories, has a decent cashback option, does not have a minimum spending requirement and does not have an annual fee to worry about!

But…we can’t redeem our points/miles on flights now

Points earned with HSBC Revolution expire 3 years after they are earned.

If you transfer your points to Krisflyer at the end of the 3 years, you will receive 3 more years of miles validity from Singapore Airlines before they expire.

If you transfer those points to Asia Miles instead (which is a better option), your miles can last forever just by having an activity in your account every 18 months. This can be done very easily by purchasing groceries from iHerb through iShop.

What if I prefer a Cashback card?

Before you make this decision, check out my article on Cashback vs Miles.

If you still prefer Cashback, your best option, without having to worry about monthly minimum spend, is also the HSBC Revolution! You may choose to redeem your points for an equivalent of 2.5% cashback instead of 4 miles per dollar.

Citibank Cash Back+ Mastercard is another option if you prefer to receive unlimited 1.6% cashback on all spending categories.

Useful articles about credit cards and the Miles Game

As usual, I recommend reading the following articles if you are new to credit cards:

• Getting Started: Is the Miles Game for you?

• Keeping track of your credit cards

• How to drastically minimize the risk of accumulating credit card debt

• Should you pay your credit card’s annual fee?

• Cashback vs Miles: Which cards are better?

Visit suitesmile.com/learn for more guides/hacks on credit cards and travel.