The past couple of days, I decided to apply for a credit card. But I am torn between either getting the UOB One Card or the Citibank Dividend Card. Both are cashback rewards cards, but with slightly different perks. I spent months researching on the pros and cons of owning either of the cards. I even closely tracked my expenditures through my current UOB debit card and then tried to see which card is better for my lifestyle. And today, I still cannot decide which one to get. So ultimately I plan to get both instead.
I’m tired to constantly comparing the perks associated with the card, on top of my expenditure habits. I do not want to fall into the trap of getting the card and having to change my spending habits to suit the card’s associated perks, which are quite measly. The perks are there to get additional value to your current spending habits. You should never change your spending habits and end up spending more, so that you can enjoy the perks that comes with it. Ultimately, it is just not worth it.
UOB One, will replace my current UOB debit card. I will cancel the debit card and get a simple ATM card for cash withdrawal from my current UOB account. UOB One will me my main credit card. With its tiered perks, getting cash backs after spending a certain amount of money through the card each month, I will use the UOB One card for my main purchases, until I hit the minimum quota to enjoy the cash back perks. Looking at my spending habits for the past 3 months, I can safely say that I spend more than the minimum required to get the cash back rewards.
Thats where the Citibank Dividend card comes in. Whatever extra spending I need, I will credit it to the Citibank Dividend card and get additional cash back rewards. Because my usual monthly expenditure would unlikely hit the next tiered rewards from my UOB One card, the extra spending shall go to the Citibank Dividend. The Citibank Dividend cash back rewards are not as generous as UOB One, unless you spend a minimum sum each time your spend to maximise the benefits, at least you get some cash back at the end of the day.
The downside to this arrangement is that I need to closely monitor my spending between two cards, which could potentially be a chore. But such fiscal discipline, of knowing how much you spend all the time could reap benefits in how your save and spend your hard earned money in the long run. Because you need to constantly check, it may serve as a reminder as to how much you spend at the end of the month.
Another downside is the temptation to just sign and spend all you like. Credit is free money with lots of consequences if you cannot pay it back in time. I have made a promise; if my expenditures are out of control, I will immediately cut the cards up. This would be my personal mandate when it comes to spending unnecessarily. The same spending habits apply with the credit cards. No impulse buying, big ticket items must be thoroughly researched and its wants and needs factor be carefully considered. Alternative avenues to get the item at a much cheaper rate must be explored throughly as well.
The upside is the cash backs which was just mentioned, but at the same time, the benefits that comes with owning a UOB and Citibank credit card. From my experience, having both maximises the benefits when it comes to spending. The additional perks and covers from restaurants, groceries, to pharmacies, to online shopping and additional store discounts can be cast over wide range of merchants, thereby, increasing the likelihood of exploiting the additional perks.