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16-01-2011, 10:36 AM
I never believed in having too many credit cards. Right now, I only have one credit card with me which I use for rebates and discounts. 
Jan 16, 2011
Savings on credit
Multiple credit card holders are using their cards to get discounts and rebates at stores
By Nicholas Yong
Singaporeans are flashing credit cards like never before, but give them credit: Burnt by splurging, some become savvy users.
At least that is what a check by LifeStyle has found.
While figures earlier this month from the Monetary Authority of Singapore showed that the number of credit cards issued in November crossed the six million mark for the first time - working out to six to seven cards a person - it turns out that some holders are choosy users.
The cards do not just pay the bills, but are also lifestyle options, with card holders telling LifeStyle that they use different cards to get what they want from plane tickets to cash rebates to store discounts.
Take, for example, businessman Chris Quek, who accumulated his eight credit cards during a season when banks were 'almost throwing credit cards at you'.
He says: 'I use mainly one primary card, with the rest for specific purchases at specific venues.'
For example, he has two OCBC cards co-branded with furniture chain Ikea and department store Robinsons that give him cash rebates and exclusive privileges.
'For married people of my age, these cards are very important as we do a lot of shopping at such places,' says the 31-year-old, who is married with a baby on the way.
Other cards give him discounts on petrol and dining, while another two are used specifically for his business.
With credit-card promoters everywhere and banks quick to waive membership fees, accumulating credit cards is easy.
Medical representative Steven Yong, 29, recently acquired a ninth credit card and does not rule out getting more 'if there are good cards with attractive benefits'.
But for business controller Amelia Tan, in her 30s, some of her 12 credit cards do not even see the light of day.
She says: 'Some I use for specific purposes like dining and some of them I don't use at all. But I hold on to them because you never know when they will come in handy.
'I've never had to pay for the cards. If they don't waive the annual fee, I'll just cancel it.'
Ms Tan, who says she is no spender, restricts herself to spending just about $1,000 a month on two primary cards.
But industry analysts caution against holding more than two or three cards.
Multiple card use can lead to multiple debts, which could over-stretch a person's ability to repay them.
The likes of Mr Quek have already gone through the over-spending phase.
He now restricts himself to spending $2,000 a month on shopping, entertainment and dining, and carefully scrutinises his receipts.
'I realised that I was over-spending and my savings were dwindling. So I cancelled quite a few cards and now I'm very disciplined,' says Mr Quek.
Ms Tan Huey Min, general manager of Credit Counselling Singapore, has this advice: Select two or three cards that best serve your lifestyle and cancel the others so that it is easier to keep tabs on your expenditure.
She says: 'This could reduce unnecessary expenses such as annual subscription fees and unnecessary spending due to readily available credit facilities or discounts and rebates offered by the various cards.'
nicy@sph.com.sg
Jan 16, 2011
Savings on credit
Multiple credit card holders are using their cards to get discounts and rebates at stores
By Nicholas Yong
Singaporeans are flashing credit cards like never before, but give them credit: Burnt by splurging, some become savvy users.
At least that is what a check by LifeStyle has found.
While figures earlier this month from the Monetary Authority of Singapore showed that the number of credit cards issued in November crossed the six million mark for the first time - working out to six to seven cards a person - it turns out that some holders are choosy users.
The cards do not just pay the bills, but are also lifestyle options, with card holders telling LifeStyle that they use different cards to get what they want from plane tickets to cash rebates to store discounts.
Take, for example, businessman Chris Quek, who accumulated his eight credit cards during a season when banks were 'almost throwing credit cards at you'.
He says: 'I use mainly one primary card, with the rest for specific purchases at specific venues.'
For example, he has two OCBC cards co-branded with furniture chain Ikea and department store Robinsons that give him cash rebates and exclusive privileges.
'For married people of my age, these cards are very important as we do a lot of shopping at such places,' says the 31-year-old, who is married with a baby on the way.
Other cards give him discounts on petrol and dining, while another two are used specifically for his business.
With credit-card promoters everywhere and banks quick to waive membership fees, accumulating credit cards is easy.
Medical representative Steven Yong, 29, recently acquired a ninth credit card and does not rule out getting more 'if there are good cards with attractive benefits'.
But for business controller Amelia Tan, in her 30s, some of her 12 credit cards do not even see the light of day.
She says: 'Some I use for specific purposes like dining and some of them I don't use at all. But I hold on to them because you never know when they will come in handy.
'I've never had to pay for the cards. If they don't waive the annual fee, I'll just cancel it.'
Ms Tan, who says she is no spender, restricts herself to spending just about $1,000 a month on two primary cards.
But industry analysts caution against holding more than two or three cards.
Multiple card use can lead to multiple debts, which could over-stretch a person's ability to repay them.
The likes of Mr Quek have already gone through the over-spending phase.
He now restricts himself to spending $2,000 a month on shopping, entertainment and dining, and carefully scrutinises his receipts.
'I realised that I was over-spending and my savings were dwindling. So I cancelled quite a few cards and now I'm very disciplined,' says Mr Quek.
Ms Tan Huey Min, general manager of Credit Counselling Singapore, has this advice: Select two or three cards that best serve your lifestyle and cancel the others so that it is easier to keep tabs on your expenditure.
She says: 'This could reduce unnecessary expenses such as annual subscription fees and unnecessary spending due to readily available credit facilities or discounts and rebates offered by the various cards.'
nicy@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
