4 Expenses You Could be Earning Credit Card Rewards For But Probably Aren’t

Almost everything you spend on–from Starbucks coffee to Grab rides–can easily earn miles or cashback if you have the right credit card. Even still, many people neglect to use their credit cards for surprisingly common expenses.

In fact, it’s almost taken for granted that credit cards don’t reward income tax payments, recurring bills and AXS, or medical expenses–but is this really always the case? To make sure you’re not leaving rewards on the table, we’ve identified four commonly excluded spend categories on which you may actually be able to earn rewards.

1. Income Taxes

While you can’t pay IRAS directly with your credit card, you can take advantage of certain credit card tax facilities to buy air miles at a deep discount. How? When you charge your income tax to your card, two things happen: (1) you earn rewards for the payment, and (2) the bank credits the amount back to your account, leaving you to pay IRAS directly. You will be charged a processing fee for this service, and unfortunately, it’s almost always higher than your earnings, except when you are earning miles to redeem for business class or above.

To put it differently, since you wouldn’t normally earn any rewards on your tax payments, paying a small fee to do so actually represents credit card miles discount. So if you charge S$10,000 tax, pay a S$16 fee (1.6%), and earn 14,000 miles (1.4 mi/S$1), you are buying miles at a rate of 1 mile per 1.14 cents. A mile’s redemption value is 4 cents for business class on average, or 8 cents first class–so by charging your taxes, you’re accessing an incredible discount. If you’re a frequent traveller, tax season is an excellent time of year to quickly and cheaply accumulate miles.

Banks That Allow You To Pay For Income Taxes Using Credit Cards

• DBS
• OCBC
• UOB
• Standard Chartered
• Citibank

Related: How To Save More On Your Income Taxes in Singapore

2. Recurring Bills

While it’s increasingly easy to pay bills with your credit card, it’s not always easy to earn rewards for those payments. Fortunately, there are a few exceptions. In fact, some cards even offer boosted rates if you spend with particular providers. UOB One Card is one such example–you can earn up to 4.33% rebate on recurring utilities bills with SP group.

Apply now and get S$350 cash credit. For new-to-UOB Credit Cardmembers only. T&Cs apply. Valid till 31 July 2024.

UOB One Credit Card

Maximum cashback for stable budgets.

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Pros

• Good fit for budgets of at least S$2,000 per month
• Easy cashback on daily spend
• Gives rebates for paying bills

Cons

• Doesn't fit inconsistent budgets
• Annual fee

More Details

Of course, many banks allow you to set up automatic payments through your credit card, so you’ll never need to worry about missing a bill, granting you a steady stream of credit card rewards.

Related: Average Cost of Monthly Singapore Power (SP) Bills

3. Hospital Bills

Paying a big bill on your credit card can be risky. If you’re confident you can pay the balance by your next credit card statement, however, you have a lot to gain. While typically government-owned hospitals and polyclinics are excluded from earning credit card rewards, some allow you to earn on both public and private hospital spend.

If you’re unsure whether you’ll be able to pay back your bill in time, you may want to consider a 0% interest instalment plan or personal loan instead.

4. Big Purchases

Let’s say you do need to make a big purchase, but you’ll need to pay it off overtime. You could go with a personal loan or borrow from friends… or you could actively earn rewards on a 0% interest instalment credit card plan. However, not all plans are equal–only a few plans offer rewards and those that do, charge even bigger processing fees.

DBS Woman's Card

DBS Woman's Card has great miles earning potential for frequent shoppers and travelers.

Read Full Review

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Pros

• Good rewards for online shopping
• Online purchase protection
• 0% interest payment plans available

Cons

• Limited rewards categories, no rewards earned for non-online shopping local spend

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Conclusion

Ultimately, the best credit card reward scheme is one that fits your spending habits and lifestyle. If you already own a credit card that offers rewards on these expenditures, or are considering applying for a new one, even better! Hopefully you can take advantage of rewards in these categories, turning your expenses today into a better tomorrow.

Read More:

• How to Pay Down Your Credit Card Debt This Year
• The Best Cashback Credit Cards For Different Types Of Spenders
• 4 Ways to Save Money When Comparison Shopping Online
• Are Annual Fee Credit Cards in Singapore Worth It?
• Should You Pay Your Rent with a Credit Card?

Cover image source: Pexels