Wondering which card is better for overseas use - Trust card vs YouTrip? We compared the fees and exchange rates and also included an alternative option Wise
UOB has teamed up with KrisFlyer, the loyalty programme of Singapore Air, SilkAir and Scoot, to provide a credit card that lets you earn miles towards future flights. The KrisFlyer UOB Credit Card lets you earn extra miles on purchases towards any of their airlines, plus on dining, food delivery, online shopping and travel using qualifying companies. While this can be attractive for those that travel through the KrisFlyer airlines quite frequently, you have to keep in mind the bunch of fees that come with this credit card.
|If you travel using other airlines or are looking for a really low-cost way to live and travel globally, take a look at Wise’s borderless account which is 7x cheaper than banks.
One of the key features of the KrisFlyer UOB Credit Card is the ability to rack up airline and travel rewards as you spend. The card itself works like a standard Mastercard credit card where you are given a credit line and you have to pay back purchases you make. But that is not all. There are lots of fees that go along with the KrisFLyer UOB Credit Card that you should keep in mind. Here are the most common fees broken down:¹
The principal card will get a yearly annual fee of SGD 192.60, including (GST). This annual fee is waived for the first year as a cardholder. But then it is required every year after that. Any supplementary cards will have an annual fee of SGD 96.30, although the first supplementary card is free.
The interest rate on purchases on the card is 25.90%.
Late payment fee
If you miss a payment, your account will automatically be charged a late payment fee of SGD 100. You will need to pay this off the following billing cycle. You will also get an additional 3% interest charged to your account on top of the current one until the minimum payments are paid for 3 consecutive cycles. So make sure you keep an eye out for your minimum monthly due dates.
Your minimum monthly repayment is going to be 3% of the balance plus any additional charges and fees, with a minimum payment of SGD 50. If you have below SGD 50 in your account, your minimum payment is your account balance.
Foreign currency transaction fee
Like many other credit cards, the KrisFlyer UOB credit card first converts any non-SGD currency purchases first to USD and then SGD. This is done at the exchange rate set by Mastercard, which is often weaker than the mid-market exchange rate so that they can take a cut of the transaction.
Your overseas purchase is then charged a fee of 3.25%. And if you are making non-SGD purchases, say from foreign online stores, then there is a 1% processing fee as well. As you can see, for a travel credit card, KrisFlyer UOB does make it expensive to spend abroad.
Cash advance transaction fee
It's always good to have cash on hand as you travel, so the KrisFlyer UOB Credit Card lets you take cash out against your credit line. But to do so can cost you quite a bit. There is a standardized fee of SGD 15, no matter how much you take out. You are then charged an additional 6% on the amount withdrawn and an interest rate of 28% on top of that until it's paid off.
Spent a bit too much? You will get charged for that. If you go over your credit limit you will be charged a fee of SGD 40-00 that will need to be paid off your next billing cycle.
To be able to apply for the KrisFlyer UOB Credit Card, you must be at least 21 years old.
The eligibility requirements differ depending on if you are a Singapore citizen/Permanent Resident or a Foreigner. To qualify, you must have either one of the following two:²
|Minimum annual income
|Minimum fixed deposit collateral
As mentioned, the ability to load up on air miles while using this card is one of the major benefits, but there are a few others. With the KrisFlyer UOB Credit Card, you can fast track to KrisFlyer Elite Silver Status, get Priority Check-in and boarding on Scoot, and discounts on ChangiWiFi and Grab rides. Let’s take a look deeper look at the air miles rewards, travel insurance and lounge access provided too.
You can earn KrisFlyer miles as you spend using your card, and earn bonus miles on certain transactions. When you first join, you are given 3,000 welcome miles, and you get 10,000 miles every year you renew your cardholding membership. And, if you open a KrisFlyer UOB Deposit Account, you can earn up to 6 more miles per SGD 1 spent using the credit card if you maintain a minimum balance of SGD 1,000.
|Type of spend
|Per SGD 1 spent on Singapore Airlines, SilkAir, Scoot, and KrisShop
|Per SGD 1 spent on dining, food delivery, online spending, travel, and transport on designated sites*
|Per SGD 1 spent on dining, food delivery, online spending, travel, and transport on designated sites, when you have made purchases more than SGD 500 on Singapore Air-related items annually
|Per SGD 1 spent on all other spending
*These are sites like agoda.com, Grabfood, foodpanda, booking.com, restaurants, bars, public transport and apps like Grab.
You can then redeem your miles for upgrades or towards flights through KrisFlyer airlines, including Star Alliance.³
If you charge an entire travel fare to your KrisFlyer UOB Credit Card, you can qualify for free travel insurance. It covers personal accident insurance when you travel up to SGD 500,000 and emergency medical evacuation and repatriation up to SGD 50,000. Take a look at their terms and conditions for more details and qualifying transactions.⁴
There is no lounge access provided with this credit card. But if you charge at least SGD 5,000 of Singapore Air related purchases on it in your first year, you can get KrisFlyer Elite Silver status.
KrisFlyer UOB Credit Card makes a strong case for people who travel far and often on only KrisFlyer airlines. If used as a daily use card, you can quickly rack up miles towards future travel and upgrades- although it will cost you in fees and charges. But if you aren’t a very frequent traveler on only KrisFlyer airlines, you may come away feeling that this card is not making traveling any cheaper.
With high annual fees, foreign transaction charges, administrative charges and an interest rate inching up towards 30%, you might get a surprise when you open your account statement. Plus for those that travel often, you aren’t able to get a transparent exchange rate and you get charged quite a bit to pull out cash. That’s why with a free account, free cash withdrawals monthly up to SGD 350 and the mid-market exchange rate, Wise makes traveling a breeze.
Get your Wise borderless card - a multi-currency account that is on average 7 times cheaper than banks
Wise’s borderless account lets you spend in over 150 currencies, and hold 40+ currencies in your account. You can then use the Mastercard to shop and spend from those currencies without any additional fees. No annual fees or foreign transaction fees here. You just pay one low conversion charge, and that’s it.
And the Wise borderless account gives you the freedom to even shop from online retailers like Amazon, Alibaba, Qoo10 without any additional charges. We use the mid-market exchange rate and smart technology, which makes it an average of 7x cheaper than banks. Drop the credit card, and pick up Wise’s borderless card to jet, spend, shop and enjoy the world freely.
Sources used for this article:
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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