American Express True Cashback Card review: A low-effort card with no limit on cashback

The Amex True Cashback Card is a super low-effort gives you 1.5 per cent cashback on virtually anything you spend on, and there is no limit to how much cashback you can get every month.

What’s more, in the first six months of card membership, you receive three per cent cashback on up to $5,000 spending. That’s about $150 of cash rebates.

So is the Amex True Cashback Card really all it’s cracked up to be? Let’s investigate:

Amex True Cashback Card terms and conditions

American Express True Cashback Card
Annual fee & waiver	$171.20 (waived for 1 year)
Supplementary annual fee	Free for first 2 supplementary cards, subsequently $85.60
Interest free period	22 days
Annual interest rate	25.90 per cent
Late payment fee	$90
Minimum monthly repayment	3 per cent or $50, whichever is higher
Foreign currency transaction fee	2.95 per cent
Cash advance transaction fee	5 per cent
Overlimit fee	–
Minimum income	$30,000 (Singaporean) / $60,000 (non-Singaporean)
Card association	American Express
Wireless payment	Apple Pay, Samsung Pay, Google Pay

How the Amex True Cashback Card works

Well, there’s not much to explain. You get three per cent cashback on everything you spend on in the first six months, up to $5,000. Subsequently, you get 1.5 per cent cashback.

At first glance, the cashback rate of 1.5 per cent isn’t that impressive, not when other cards are offering cashback rates as high as six per cent to nine per cent.

But upon closer inspection, cards that offer very high cashback rates usually only do so subject to two conditions: Spending in certain categories, and that you satisfy their minimum spending requirements.

That means a certain card might limit their generous cashback rate to specific categories (e.g. online purchases only), and/or require you to spend at least $600 a month to qualify for the cashback.

Therein lies the American Express True Cashback Card’s real strength — their 1.5 per cent cashback rate is offered with no strings attached.

If you spend only $50 that month, you still get the cashback. If you used your card to pay for your new window grills at Ah Seng Contractor Pte Ltd, that qualifies for cashback.

READ ALSO: Should you get a cashback credit card to curb inflation in Singapore?

Who should use the Amex True Cashback Card?

As with most unlimited cashback cards, the Amex True Cashback Card is great for people who are making hugely expensive life transitions. Think: Paying for a five-star hotel wedding banquet or moving into a new home. It’s also the highest unlimited cashback card in the market for the first $5,000 spend, at three per cent, making it perfect for one-off, big-ticket purchases.

Before you get all excited, let’s set the record straight — you cannot use your credit card to repay your home loan. But still, it pays to sign up for a credit card with very relaxed terms and conditions when you’re about to move in to your new home.

That’s because, apart from your home loan repayments, you’re going to be paying for a ton of assorted stuff — furniture, appliances, renovations, an interior designer, etc. Many of these won’t fall into bonus cashback categories like online shopping, dining or groceries.

You’re also going to be spending thousands, if not tens of thousands of dollars kitting out your new home, and that can translate to a ton of cashback if you pick the right card. You don’t want to be restricted by a cashback cap.

What are the alternatives?

Let’s look at some similar cards on the market to see if they’re better for you than the American Express True Cashback Card.

UOB Absolute Cashback Card — This card has the highest cashback in the market at 1.7 per cent, with lesser exclusions (you can use this card to pay your insurance premiums!). You can use this card after you’ve maxed out your Amex True Cashback card first $5,000 spend!

Citi Cashback+ Mastercard — This card offers 1.6 per cent cashback and is a Mastercard. Stack this with the Instarem Amaze Card. This will give you 1.6 per cent plus one per cent cashback!

Standard Chartered Unlimited Cashback Card — This card used to be the American Express True Cashback Card’s closest competitor and also offers 1.5 per cent cashback with no cap or minimum spending. They have a current sign-up bonus of $100 cashback for new-to-StanChart card members, which is actually more attractive than Amex’s introductory three per cent rebate.

READ ALSO: Which corporate credit card should small businesses use for their operations?

This article was first published in MoneySmart.