Who are premium credit cards suitable for?
Premium credit cards are not for everyone, but they can be a great fit for some.
- High-income earners. Preium cards usually require a higher minimum income to qualify, meaning they're not designed for low earners.
- Frequent travellers. The focus of these cards' benefits and rewards are often around travel. Most come with perks such as free airport lounge access and complimentary flight upgrades.
- Big spenders. The more you spend, the more you'll reap the rewards. This is especially true with the premium earn rates on offer.
If you aren't a good fit, there are still lots of credit cards in Singapore you can consider applying for.
What to compare for premium credit cards
Compare these key aspects when looking for the best premium credit card for you:
- Annual fees. How much does the card cost per year? Can you justify this expense based on your usage and the benefits offered?
- Interest rates. What's the interest rate on outstanding balances? So, if you don't pay off the full balance every month, could you afford it?
- Rewards. How would it reward your spending? Do you earn credit card points or cashback? Are the rewards suited to your preferences and habits?
- Benefits. Are they aligned with your interests? Will they deliver value for you and are you likely to use them to the fullest extent?
- Criteria. Do you meet the minimum income requirements?
How to compare premium credit cards
To find the most suitable premium credit card for you, simply follow these steps:
- List your preferences. Identify your wants and needs in terms of rewards, privileges, and fees, etc.
- Compare the cards. Pick winners, compare cards against each other, and see how they stack up against each other based on the key aspects mentioned above.
- Evaluate additional benefits. Consider the real-world value of each card's benefits and how often you will realistically use the perks offered. Are they worth it?
- Choose and apply. Pick the card that aligns best with your preferences and financial situation. Submit your application online.
Pros and cons
- Premium credit cards generally offer higher rewards earn rates compared to standard cards.
- From complimentary lounge access to luxury hotel stays, these cards come with high end privileges.
- Enjoy perks such as travel insurance, airport lounge access, and travel vouchers.
- For some, carrying a premium credit card is a symbol of success and wealth.
- Premium credit cards don't come cheap and have higher annual fees than typical credit cards.
- A higher minimum income required to be eligible.
Can the benefits of premium credit cards be shared with family members?
Many premium credit cards offer supplementary cards for family members. However, the specifics vary from card to card, so it's best to check with the card issuer for details.