Most people either forget the annual fee is coming or just pay it without thinking.

Here's what they miss: many cards offer a renewal miles or cashback bonus that more than offsets the annual fee — but only if you pay it instead of requesting a waiver. The Citi PremierMiles Card, for example, gives you 10,000 renewal miles when you pay the S$196.20 annual fee. At a conservative valuation of 1.5 cents per mile, that's S$150 in value — meaning your net fee is actually S$46.

The fix: Before auto-requesting a fee waiver every year, check what renewal bonus you'd be giving up. Sometimes paying the fee is the smarter move.

Cashback vs miles is not a universal answer. It depends entirely on how you spend and how much effort you want to put in.

Miles cards reward patience and planning. You accumulate over months, transfer strategically, and redeem for high-value flight or hotel bookings. Done right, the value per dollar spent can far exceed cashback. Done wrong — miles expire, transfers cost fees, and you end up with nothing redeemable.

Cashback cards are simpler. Money back every quarter, no juggling, no expiry stress. The ceiling is lower but the floor is much higher.

The fix: Ask yourself honestly — do you travel at least twice a year on full-price or business class tickets? Do you have the patience to track points and redemption windows? If yes, a miles card will likely outperform. If you just want straightforward savings, cashback wins.

If you've read this far and you're thinking "I should probably be on a miles card" — the Citi PremierMiles Card is where most Singaporeans should start.

Credit cards are not the problem. Using them the wrong way is.

Fix the five mistakes above and you'll earn more, pay less, and actually get something back for every dollar you spend.

And if you're ready to start earning miles that never expire, two free lounge visits a year, and up to 30,000 welcome miles — the Citi PremierMiles Card is a strong place to begin.