If you eat out frequently, it’s best to pay with a credit card that will maximise your rewards and get you other benefits as well. But selecting a dining credit card from the many that are available can be confusing.
How credit card dining promotions work
Among the credit cards in the market, which should you choose for eating out? When you're deciding, it's a good idea to compare the privileges and discounts that different credit cards offer. There could be big discounts on food orders at selected restaurants or bonus rewards points for meeting a minimum spend target within a specified period.
Some dining credit cards even offer cash back on dining spends and payments made for fast food. Another great credit card dining promotion involves providing cardholders with benefits such as reserved or preferred seating.
There are several other attractive types of bank promos. For example, some cards might provide new cardholders with a choice between thousands of rewards points or a welcome gift, such as a tablet or a premium hairdryer.
How to stack dining credit card rewards
Want to get more out of your dining credit card? Try double dipping. That's the practice of gaining additional benefits on top of the regular cashback or rewards points you're entitled to.
For example, a restaurant may be offering an upfront discount or 1-for-1 deal for paying with a particular bank's credit card. So if you keep your eyes open for a promotion involving your bank, you can double dip with a discount from the restaurant plus the cashback or points from the bank.
What qualifies as eligible dining spend?
There's a critical issue regarding cashback on dining spends that you need to be aware of. The card issuer may exclude specific merchants from its approved list of places where you can earn cashback on dining spends.
For example, a card may disallow cashback on dining spends at the Crystal Jade Group of Restaurants, Swensen's, and Jack's Place Steak House & Restaurants, among other merchants.
There’s another point you need to verify. If you regularly use online food delivery services, it would be a good idea to check if cashback on dining spends is available for this category.
What to compare for the best dining credit cards
When you’re zeroing in on a credit card, don’t be taken in by first impressions. It's quite common to get a benefit like an annual fee waiver. Additionally, many cards give you points without requiring you to meet a minimum spend threshold.
But fee waivers and minimum spend requirements aren't the only factors you should consider. Dig a little deeper. A seemingly generous rewards points structure may be available only for purchases made at specific restaurants that you don’t usually frequent. Similarly, a high rebate at certain restaurants could be limited to weekdays.
Firstly, check if the credit card charges an annual fee. As we mentioned a fee waiver is a fairly standard benefit in this category. So, when you're choosing a dining credit card, you shouldn't pay an annual fee unless there's an excellent reason to do so.
Here are some other features you should take into consideration when selecting a card:
- Cashback or points? Does the card provide cashback, rewards points, or air miles on dining spends? Which one suits you best?
- Points structure. If points are offered, check the rewards points structure and determine how easy it is to redeem points.
- Home deliveries. Find out if getting food delivered to your home also entitles you to cashback or rewards points.
- Fast food rebate. Is there a rebate or points for fast food spend?
- Minimum spend. Ascertain if there’s a minimum spend involved to earn points or cashback.
How to compare the best dining credit cards
When choosing between different dining credit cards, pay attention to your specific requirements. Would you like to keep your annual fee to the minimum? Or are the cashback or rewards points and other perks your primary consideration?
Remember that a dining credit card may also offer benefits that aren't linked to eating out.
- Your dining habits. Get an idea of your typical monthly dining expenditure and where you typically eat out (or in, as the case may be).
- Minimum spend requirement. If there is one, make sure you can consistently run enough spend through the card so you don't forfeit rewards. If you're unsure how much you might spend, consider a credit card with no minimum spending criteria instead.
- Caps. Check if there is a cap on the dining category of spend. Would you spend more or less?
- Promotional offers. Does the card run promotional offerings at your favourite restaurants where you can get money off or earn more rewards?
- Rewards program. Would you prefer earn points directly into an airline program such as KrisFlyer or earn with a program that has the flexibility of multiple transfer partners?
- Fees and rates. Is the annual fee worth paying? If you carry a balance, can you stomach the interest?
