You're probably at Sheng Siong for one reason-cheap groceries.

In the spirit of being cheapo, it makes sense to use a credit card that gives you cashback to squeeze even more value out of your grocery money.

You might already have heard of the Bank of China Sheng Siong Card, which, while not glamorous, offers up to 6 per cent rebates when you shop at the budget supermarket.

But now, there's a new Sheng Siong credit card in town, this time from DCS (formerly known as Diners Club Singapore). Will this card be the key to pinching even more pennies? Let's find out.

Before we get into it — what is DCS?

Most of the other credit cards in your wallet are likely to have been issued by banks.

DCS isn't a bank, but it is a financial institution that likewise issues credit cards, which function through the usual payment networks like Visa, MasterCard and UnionPay.

DCS cardholders get to call themselves 'club members' and receive certain benefits which might include insurance, rewards points and lounge access.

DCS Sheng Siong Credit Card: Key Features

There are 2 types of card you can apply for:

1. DCS Sheng Siong Regular Credit Card-Entry level credit card
2. DCS Sheng Siong $500 Limit Credit Card-Credit card with a $500 limit suitable for students, NSFs and those whose income is under $30,000.

Here are the cards' key perks:

• If you have the Sheng Siong Regular Credit Card: Earn up to five per cent cash rebates at Sheng Siong outlets (capped at $1000 worth of spending per month, no minimum spending requirement).
• If you have the Sheng Siong S$500 Limit Card: Earn up to two per cent cash rebates at Sheng Siong outlets (capped at $500 worth of spending per month, no minimum spending requirement).

And not to forget the Diners Club privileges:

• Free Insurance Coverage for Regular Credit Cardmembers: Up to $1 million personal accident protection, $250,000 on-flight personal accident insurance and travel inconvenience reimbursement.
• Earn Club Rewards Points when you spend outside Don Don Donki which you can redeem for free gifts, shopping/dining vouchers & air miles. ($1 = One point). Club Rewards Points don't expire so you don't have to worry about rushing to redeem them.
• Access to nearly 1,300 Airport Lounges across 600+ cities in 140 countries worldwide; including Changi Airport Terminal 1, 2, 3 and 4. Basic Cardholders enjoy one complimentary access per year.

DCS Sheng Siong Credit Card: Annual Interest Rate and Fees

Your credit card is supposed to help you save money, not spend more!

So, be aware of the various fees and charges you could potentially get slapped with, and don't forget to call DCS up each year to beg for an annual fee waiver.

DCS Sheng Siong Credit Card: Minimum Income and Age Requirements

Which DCS Sheng Siong Card do you qualify for? It all boils down to the following requirements:

DCS Sheng Siong Credit Card: Is MoneySmart offering any promotions?

Are you also considering to apply for the DCS Diners Club Cashback Card or the DCS Don Don Donki Credit Card? If so, you're in for a sweet deal.

To snag a pair of Gotrip luggage bags worth $500, apply for any two DCS cards and spend a cumulative of at least $350 monthly for two consecutive months.

Once you've met the eligibility criteria, you'll receive redemption instructions within two months of the end of your qualifying spend period.

This promotion is valid until May 31, 2023.

One thing to note: Diners Cards cannot be used on Sheng Siong Online

If you don't live near a Sheng Siong outlet (or are just too lazy to leave the house) and usually order your groceries online, be warned that DCS cards cannot be used to make purchases on the Sheng Siong Online website.

Are grocery credit cards any good?

Everyone, no matter how little they eat or how little importance they attach to personal hygiene, has to do groceries at some point in time. So, it makes sense to use a grocery credit card to earn cashback on your necessary spending.

To really supercharge your cost savings, grocery credit cards should be used in combination with a grocery loyalty programme.

Most of the big supermarket chains have some kind of loyalty or membership programme that lets you earn points as you spend and then convert them to cash savings.

Unfortunately, Sheng Siong is one of the few supermarket chains that does not have a loyalty programme.

Apparently, they think their groceries are already cheap enough!

Is the DCS Sheng Siong Credit Card card suitable for you?

The five per cent cash rebates offered by the DCS Sheng Siong Card are quite attractive indeed.

If you are a diehard bargain hunter and regular Sheng Siong shopper, you are in the best position to benefit from this card.

Firstly, you should know that the cashback mechanism is a bit different from other credit cards. Cashback is actually offered in the form of rebates (One rebate = $1).

What's the difference between DCS' rebates and vanilla cash rebates?

It's not offered on GST and expires in 30 days. You can only use your rebates to offset your bills when shopping at Sheng Siong.

In other words, rebates do not automatically offset your next credit card bill — you have to shop at Sheng Siong again within 30 days to use them.

If you only go to Sheng Siong occasionally, you're in danger of having your rebates expire.

In that case, it might be better to opt for a different grocery cashback card. Those who usually shop at Sheng Siong Online can also opt for a card that rewards you with cashback for online spending.

Secondly, don't forget that there's a rebate cap on $1,000 worth of spending (translates to $46.30 worth of rebates). If you have a massive family and spend over $1,000 a month on groceries, you should switch to another card once you go over $1,000, as you won't get rebates on any excess.

Alternatively, you might want to opt for a different card with a higher cashback cap.

By the way, you can also earn DCS Club Rewards Points when you spend outside of Sheng Siong.

These points can be redeemed for free gifts, shopping/dining vouchers and air miles.

However, it's probably more worthwhile to use a different credit card for non-Sheng Siong shopping, since you don't get any cashback on these random purchases.

ALSO READ: Standard Chartered Simply Cash Credit Card review: Fuss-free card with no minimum spending requirements

This article was first published in MoneySmart.