How to use your Manhattan Platinum Card more effectively

The following use of the Manhattan Platinum Card is my own opinion about how to use this credit card more effectively after using it for some time and re-looking at their terms and conditions.

You may have heard great stories about how great the rebates for Manhattan Platinum Card are.

I did and so I decided to give it a try. And here’s my version of the card benefits uncovered.

Generally, it is a great card, one that can give you up to 5% rebates on your spending. Note that the key word here is ‘up to’.

So it’ll reap you the maximum benefits only if you know how to use it to maximise your rebates earned.

First, let’s take a look at the main rebates structure.

$1-$999 monthly spend = 0.5% cashback monthly

$1,000-$2,999 monthly spend = 1.0% cashback monthly

$3,000 and above monthly spend = 5.0% cashback monthly

Scenario #1:

So if your expenses averages about less than $1,000 a month and you already have a favourite card that is not Manhattan Platinum Card, by all means carry on using your current card.

There just isn’t enough incentives to make the switch to this card. At 0.5% rebates, there are other cards in the market that either offers the same privilege or is more worthwhile to use.

Scenario #2:

Your spending averages about $1,000-$3,000.

This is a little bit more tricky to say for sure if you should be using this card. It’s tricky because at this tier, the rebates are about there but not yet there.

Whether to use or switch to this card depends on what card options you are already using and the lifestyle you are living.

Example, if you spend an average on $400 a month on groceries like I do, there are other cards that offers incentives that weigh more than the 1% cashback that Manhanttan Card is offering. It could be up to 5% or 8% discount.

Or if you are a driver, spending an average of say $300 a month on petrol, using affiliated cards would gives you at least 5% upfront discount plus whatever points or rebates.

Or if dining at restaurants is something you often do, different cards gives different upfront discounts like 10% off the total bill plus the points or rebates of the card.

But luckily for dining portion, Manhattan Platinum Card (being a Stanchart card) offers a good enough range of dining privileges. A double plus to use this card if dining at these affiliated restaurants is mostly where your expenses went to. Usually the privilege is an additional complimentary desert, good for those who enjoys an after-meal sweet delight.

Also, using affiliated cards at different stores may give you a higher return.

So it really depends on the amount of spending in the different categories.

That’s why I said there isn’t really a clear cut answer to use or not to use this card if you are in this range.

Scenario #3:

Your spending averages above $3,000 monthly.

Finally, it sounds like Manhattan Platinum Card complements such a lifestyle.

At 5% rebates, it’s really a good percentage!

Now, let me do a simple calculation, $3,000*0.05 = $150 cashback.

So if I spend $3,000 monthly on this card, it’ll be a lot of cashback!

So in a quarter, I would get back $150*3 = $450 worth of cashback.

Right?

Not exactly.

It’s because there is actually another terms and conditions – the monthly rebates is capped at $200 every quarter. So where does this leaves you?

Yes, $200 cashback instead of the $450 you thought.

Assuming in 3 months, you spent $9,000. And you got back $200 cashback, what was the actual percentage of the cashback? About 2%. This is not a very competitive percentage.

So how? The above 3 scenarios cover all 3 tiers and it doesn’t seem like I could use the card at all!

There is a fourth scenario, one that in my personal opinion will maximise the use of this card only if you fulfill the criteria.

Scenario #4:

Are you:

– Planning a trip?

Or

– Intending to spend on a big ticket item that will cost somewhere in the range between $3,000 to $4,000?

If the answer is yes, then it’s time to wipe out the Manhattan Platinum Card because when you spend in this manner, you still get your rebates, without compromising the rebates % you’ll get back. That’s why I stated $3,000 to $4,000 range in my example.

If you need to spend more than this amount, see if you can split the bill and charge to another credit card for points or other benefits instead. Charging beyond $4,000 to Manhattan Platinum card in a quarter really doesn’t reap you any additional benefits.

You need to do your lump sum purchase together so that it hits the 5% rebate tier in that month (determined by your statement bill).

And you can only do this once every quarter.

The additional plus points about Manhattan Platinum Card is that it is relatively hassle-free to use in this system.

Now go and enjoy the benefits that a credit card can bring only through proper money management and maximising its benefits. 🙂