Ah, how I miss being a fresh graduate again — fresh out of university, ready to conquer the world. Stepping into adulthood brings about new responsibilities, including managing your finances as you enter the workforce.

However, unless you're a YouTube finance guru, trying to figure out personal finance — especially navigating the confusing maze of credit card options — can be a huge chore. It's like trying to choose the best stall at your nearby kopitiam — super hard!

But relak lah, we're here to help guide you through this. Picking the right credit card can make managing your money and daily expenses much easier — so let's break it down and get you started on the right foot!

Why credit cards?

Credit cards provide way more flexibility than debit cards when handling short-term expenses.

While a debit card only lets you spend what's in your bank account, a credit card lets you borrow up to a limit, so you can cover your costs even before payday. Shiok, right? It's like having a safety net for those months when the finances look a bit jialat.

On top of that, credit cards let you spread out your payments. You can pay off your balance in instalments — often interest-free, just make sure you pay on time!

This can be a lifesaver for managing cash flow and sudden expenses — like when you drop your phone and it shatters (along with your heart), and you gotta get a new one.

And let's not forget the perks! Many credit cards come with cashback, rewards, or travel miles — so your spending can earn you goodies like vouchers or discounted flights.

What do I need to consider?

What goes into choosing the right credit card for a fresh graduate? Here are a few things to consider:

1. Annual fees

Who said the best things in life are free? Jokes aside — yes, annual fees do exist for credit cards, but the good news is that there are plenty of options with low or no annual fees.

Some banks will even waive the fee for the first year (or more), which is helpful when you're just starting out and trying to save every dollar.

Pro Tip: Once the fee kicks in, try calling your bank to ask for an annual fee waiver. If you've been paying your bills on time, they often will give chance and waive the fee for you.

2. Cashback, miles, and rewards

Cashback, miles, and rewards are a huge draw for using credit cards. But don't just anyhow chase rewards - choose a card that fits your lifestyle and spending habits. Some cards give better rewards for specific categories like dining, transport, or online shopping.

If you're a Shopee king/queen, you might want a card with high cashback for e-commerce. Or if you're the kind who drinks too much Chagee, find a card that gives rewards for dining. Find a card that works with your spending habits, and make those purchases work for you.

3. Eligibility criteria

Most credit cards have a minimum income requirement, but as a fresh graduate, you don't have to worry too much.

Many cards are available with a minimum annual income of around S$30,000, which is quite common for entry-level jobs. So, there are plenty of options to choose from without feeling like you kena sabo by high salary requirements.

Got so many… which one to choose?

Here are a few cards that are especially good for fresh graduates, depending on your spending habits:

1. UOB Absolute Cashback Card

Summed up: Simple, unlimited cashback

Why It's Good: This card is great for those who want no-nonsense cashback on every transaction — 1.7 per cent cashback on all your spending, no minimum spend, and no categories to track. It cannot get any more straightforward liao. Plus, the annual fee is waived for the first year. Huat ah!

2. Standard Chartered Smart Card

Summed up: High cashback on everyday essentials

Why It's Good: If you're a grab-and-go person, this card is for you. You get six per cent cashback on fast food, coffee, digital subscriptions, and transport. No minimum spend and no annual fee means it's easy to manage and a great way to save if you like to ride MRT and lim kopi.

3. HSBC Revolution Credit Card

Summed up: Maximizing rewards on shopping

Why It's Good: This card is ideal if you love online shopping or use contactless payments often. It offers 10x reward points (equivalent to four miles per dollar) on online purchases and contactless transactions. No minimum spend and no annual fee make it super accessible for fresh grads who always bargain hunt on Shopee.

This article was first published in Wonderwall.sg.