Having Multiple Credit Cards Proves Extremely Useful

Do you know that we have some 9.5 million credit cards in circulation in Singapore currently? With bad debts from credit cards rising as well, it is no wonder that some people feel that credit card usage should be avoided, even if they are qualified for card application.

Credit cards can be considered a double-edged sword – if you mishandle it, credit cards can send you into spiralling debt. But if you are able to use them wisely, they can provide you a host of rewards just by using them as a form of payment. Sometimes, you would even be thankful to have a few cards in your wallets! Here’s 4 instances where having multiple credit cards can save your day in an emergency situation:

• Medical Fees

One of the last thing you want to worry about after a medial crisis is to think about the payment. Typically, a stay in the hospital does not come cheap, especially if there’s any surgery involved. Having a credit card may prove to be very useful during this time as it allows you to make a single large sum payment. If you are using a cash rebates card, that’s even better because you get to claim a small percentage of discount!

If the sum you are required to pay is too big, you may want to ask if you can split the bill to be paid by two credit cards instead.

• Buying on Instalment

There’s quite a number of merchants in Singapore that offer interest-free instalment when you use an affiliated credit cards. These are usually home furniture and appliances shop, or beauty salons where you sign up for a year-long packages but prefer to settle your bill on a monthly basis.

Credit cards are extremely useful here as not only do you not incur any extra interest charges, you can also better manage your monthly cash flow as you split up your payments. As long as you can pay the entire bill on a monthly basis, there’s definitely more good than harm in these instances.

However, do note that when you pay by instalment, the monthly amount you pay eats into our credit limit, so you might have less available credit to make other purchases. This is when having anyother card will come in handy.

• Wedding Expenses

Weddings in Singapore tend to be an expensive affair, and it is not unusual for couples to spend in the range of $30,000 to $80,000 for this once-in-a-lifetime event. One of the biggest bill for this will no doubt be the dinner banquet, where it is usual for a table to cost around $1,200 to $2,000. Depending on the number of guests, the bill for this item can easily set one back by $20,000 to $40,000.

So how do you pay so much money in one go? Worry not, since most hotels and restaurants understand this is a huge sum of money, so most of them allow you to pay by instalments. A savvy couple will be able to make use of credit cards with rebates to allow them to maximise the amount of savings they can get.

One of the best credit cards to use includes the UOB One Card, which allows you to get up to $300 maximum rebate per quarter, as well as the Standard Chartered Manhatten card, which gets you a maximum of $800 rebates per year. So if you are able to split up the payment in such a way that you can use multiple cards, you can ultimately earn more rebates/air miles!