Why I stopped using the UOB One Credit Card ?

 

Why I stopped using the UOB One Credit Card ?

UOB One credit card in the past i even did a full review of it because it has the highest cash back in town up to five percent or even 10 percent which is really unheard of in the singapore credit card market 

But you know recently there has been some major updates and changes with the UOB One credit card and i think you should know about it because it will change your decision on whether you should use the UOB One credit card 

Let's address the elephant in the room there is definitely a nerf in the spending tier especially the 2000 spending tier from july 2022 onwards on your statement month the effective cashback of five percent will be reduced to 3.33 cashback you know previously 

If we spent a consecutive three months of two thousand dollars we could get up to five percent cashback with our UOB One card right but now it's all going to change because it will be aligned with the 500 and the 1 000 spending tier and every one of them will be 3.33 no more 5 cashback that is actually quite a big nerf right i mean 

If we compare it to previously we could get up to three hundred dollars per quarter effective cashback but now with the nerf from five percent to three point three three percent we are only getting two hundred dollars of cashback per quarter 

But at least there's one good news coming out of it right the additional cashback merchants for the two thousand dollars spent here will be upgraded from five percent to six point six seven percent that is only for the two thousand dollar spending tier for the five hundred dollars and one thousand dollar spending time no change the additional cash back will still be five percent only the two thousand dollar spending tier 

Then your additional cash back will be six point six seven percent i mean even with all these nerves there are still some people who would use the card because their consumption spending per month easily exceed two thousand dollars for a family but for myself i think it's not suitable for me anymore previously 

I used the uob one credit card really for shopee for grab merchants because shopee is really more of an online marketplace and it's really convenient easy and the discounts are really quite good but in recent times

I think shopee has really cut back all the discounts and promo codes and also we are not working from home anymore so the demand for shopping on e-commerce is really going down because we are not at home to receive the parcels and we don't have so much time to scroll through our phones to look for those deals and maybe for grab because you're working from office 

Now you don't really have to spend it on grab food grab delivery all that stuff that makes it more convenient for you so my grep spending is reduced by quite a bit as well 

So there's really a lifestyle change right previously the work from home environment really gives rise to a lot of e-commerce merchants and also all these delivery merchants that has a boom in their business also let's talk about another inconvenience of yob1 that is you have to meticulously track your spending month by month 

Because you have to hit the consecutive quarters to be eligible for the cashback i mean if you miss the spending by 10 cents or one transaction missing from the five eligible transactions your whole cashback for the entire quarter is forfeited which is a pretty big risk and you know times have become more busy

When we go back to office we don't really have much time to track how much are we spending on this card what are the nitty gritty details and because i'm also still working full time with a youtube side hustle there's really not much time to go into so much details on hitting the minimum span as well 

As tracking which merchants are eligible or not and i'm sure that's pretty much some of your experience which is why i always talk about if you need to spend so much effort to gain that cash back is it really worth your time and effort doing that also let's talk about the impact on third party payment merchants like cardup 

I pay my i previously introduced both of them to you one of it is to pay taxes and to get some cash back over it right but now with the reduced cash back cap from five percent to three point three three percent is it really worth that much effort i think if you are previously spending on the five hundred dollars and one thousand dollars spent 

Here it's not much of an impact because nothing has really changed much for you but if you are paying like a high ticket item like your mortgage over one thousand dollars to hit your two thousand dollars spent here 

Right now that your cashback has been reduced from five percent to three point two three percent that's going to materially impact how much cash back you will get from using services like cardup and ipaymy so that's just a calculation you have to make for yourself whether is it worth it 

For your effort to continue using cardup and ipaymy with the UOB One credit card because if we take three point two three percent less of the two percent transaction fees the effective cash back is only one point three percent which is really quite low for the effort that 

You have to do right unless you can think of any other better ways to pay your merchants that do not accept credit cards then i think it's still worth it for a little bit of effort get some cash back over one percent i think that's still fine especially if your spend amount is rather high 

But you know another good news is that uob has added simply go as an additional cashback merchant which means that you can get up to additional five percent to six point six seven percent if you use your you will be one credit card to go and tap on the public transport rights in Singapore 

But anyway uob one should not be your first choice for using simply go right because i always talk about using revolut if they continue with the 20 cashback promo for your public transportation rights by fulfilling the terms and conditions of course.

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