Cashback vs. Travel Rewards: How to Choose

There are so many credit cards in Singapore, but you often hear about these two types. Let's introduce the two main types of credit card rewards available in Singapore: cashback and travel rewards. Both reward systems offer value but in distinct ways. The goal here is to help you decide which one best suits your lifestyle, spending habits, and financial goals.

>> MORE: Best rewards credit cards

>> FIND A CARD: Best credit cards in Singapore in 2025

With a cashback card, your rewards come as cash, not points or miles that you have to figure out how to redeem. The easiest way to redeem cashback is for a credit on your statement; you may also be able to get a check or a direct deposit to a bank account. Usually, banks in Singapore make it easy to redeem cashback on their app or online banking site with just a few clicks.

Fewer perks but fuss-free redemption

Because redeeming cash rewards requires no research and little effort, this option is perfect for someone who wants a low-maintenance wallet. If you're looking to finance a large purchase, many cashback cards in Singapore also come with generous introductory 0% APR promotions as well as bonus offers that can kick a couple of hundred dollars back to you right off the bat. This highlights a key difference when considering between a cashback vs travel rewards card.

With a few exceptions, such as cards that pay extra-high rewards rates in certain categories, cashback cards don't usually charge annual fees. Because of that, however, they lack the kinds of perks (including lavish sign-up bonuses) that you'll typically find on travel rewards cards that charge a fee or have high monthly spending requirements. This is a factor to consider when determining if a cashback or travel rewards card is better for you.

How to choose a card based on your spending habits

Choosing a cashback card based on your spending habits (e.g., groceries, dining, online shopping) is important. There's a variety of cashback categories available, and some cards offer higher percentages for specific spending types like dining, groceries, or petrol, which may be more relevant for different Singaporeans. These cards include:

• Citi Cash Back Card: Earn 6% cashback on dining and grocery spending (local & overseas) and up to 8% cashback on transport.

• Standard Chartered Simply Cash Credit Card: Enjoy up to 1.5% unlimited cashback on almost all spend, with no minimum spend and no cashback cap.

• HSBC Live+ Credit Card: Get up to 8% cashback* on dining, entertainment, and shopping (local & overseas), and 5% cashback* on fuel spending at Caltex and Shell stations in Singapore.

>> SEE: 8 ways to earn more cashback on credit cards, shopping apps, and more

>> FIND A CARD: Best travel credit cards in Singapore

Travel credit cards reward you with points or miles, whose value fluctuates depending on your redemption method. Travel rewards credit cards are categorised into general-purpose cards and branded cards, which are affiliated with an airline credit card or hotel card.   

General-purpose travel cards offer unparalleled flexibility. You’re not confined to redeeming rewards with a specific airline or hotel. You can utilise your points for travel bookings or apply them as credit against past travel purchases.   

Unlike airline-specific credit cards or hotel cards, general-purpose travel cards typically lack redemption restrictions. For instance, airlines may impose blackout dates, preventing mile redemption for free flights. However, with a general-purpose travel card, you book travel at the standard price and then use rewards to offset the credit card bill.   

There are numerous travel cards tailored for Singaporeans. The Citi PremierMiles Card, for example, is a top choice for frequent flyers and provides benefits like Priority Pass airport lounge access, travel insurance, non-expiring Citi Miles, and travel booking promotions. This card also allows you to earn 1.2 miles per S$1 locally and 2.2 miles per S$1 on foreign currency. Citi Miles earned can also be converted to various frequent flyer programs, including KrisFlyer.   

The UOB PRVI Miles Visa Card is another great example of a general miles credit card. This card allows cardholders to earn up to 3 miles per S$1 spent overseas, 1.4 miles per S$1 locally, and 8 miles per S$1 on hotel and airline bookings via Agoda and Expedia through UOB’s website. Cardholders can also enjoy 4 complimentary lounge visits.

The DBS Altitude Visa Signature Card is also another great travel card for Singaporeans who seek flexibility and value in their travel rewards. This card offers up to 1.3 mpd locally and 2.2 mpd overseas, with 10,000 bonus miles for paying the annual fee and 2 free lounge visits. It also features no expiry air miles and unlimited air miles, providing exceptional long-term benefits.

Extra perks

As previously mentioned, a key factor in the "cashback vs travel rewards" discussion is that travel cards include perks like complimentary travel insurance and airport lounge access. Additionally, general-purpose travel cards allow you to transfer rewards to airline and hotel loyalty programs. The Citi PremierMiles Card mentioned above, for example, offers exclusive hotel, flight, and travel deals through platforms like Agoda and Kaligo.   

Another example of a travel card that offers added rewards is the HSBC TravelOne Credit Card. This travel credit card features partnerships with nine airlines, including Japan Airlines, Qatar Airways, and Thai Airways, and hotel partners like Wyndham Rewards, IHG One Rewards, and Marriott Bonvoy.

When selecting a card, align it with your usage patterns and financial goals. Assuming you avoid carrying a balance and aren't concerned with interest rates, you can opt for a card with high rewards and redemption options that suit your lifestyle. A travel card is ideal for frequent travellers who can leverage its perks. Conversely, a cashback card, with its lower costs and versatile rewards, is often the preferred choice for many.

Ultimately, which is better — travel rewards or cashback depends on your individual needs. When deciding between a travel credit card vs a cashback card, it all comes down to the individual. Also, consider the term cashback vs travel rewards when making your decision.

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