Your 2026 credit card reset: Which cards should you keep or cull?

Now that it's 2026, you're probably doing the usual new year reset. Checking your expenses, planning holidays, or setting a budget for the year ahead. 

One thing that often gets overlooked is credit cards quietly renewing their annual fees. After a year of rising costs, changing routines and travel finally returning, some cards in your wallet may no longer fit your spending preferences.

Before those fees roll over and old habits follow you into 2026, here's how to review your credit cards properly and decide which ones still deserve a place in your wallet.

Why should you review your credit cards once a year (or regularly)?

Credit cards often stay in your wallet out of habit. You tap, pay and move on, while fees and benefits quietly roll over in the background. A new year review gives you a chance to check whether your cards still fit how you actually spend today.

This matters more than it seems.

• Your spending habits change faster than your cards

Many people now spend a large share of their monthly budget on essentials and digital spend. Groceries at FairPrice, Grab rides, food delivery, Shopee or Lazada orders, and recurring subscriptions can easily make up most day-to-day expenses. Cards designed mainly for overseas travel or petrol may reward very little of this spend, even though they still sit at the front of your wallet.

• Annual fees are not small amounts

In Singapore, most mainstream credit cards charge annual fees in the range of around $190 to $200 including GST. Premium cards can cost $500 or more per year. Paying even two or three unnecessary fees can quietly add up to several hundred dollars a year, often without any clear return.

• Card benefits change, sometimes without much notice

Cashback categories, caps, lounge access limits, and complimentary insurance are reviewed and adjusted regularly by banks. A benefit that justified a card a few years ago may be reduced, capped more tightly, or removed entirely. If you have not checked your card's terms recently, you may be paying for value that no longer exists.

• Unused cards still create real cost and clutter

Even dormant cards can renew annual fees, complicate your finances, and increase the risk of missed charges or forgotten renewals. They also make it harder to see which cards are actually working for you.

A short review at the start of a new year helps you make deliberate choices. You keep the cards that still earn their place, cut the ones that no longer do, and start 2026 without unnecessary fees quietly following you forward.

How to review your credit cards

Now let's start. Reviewing your credit cards does not need to be complicated or time consuming. A simple, structured check is usually enough to spot which cards still work for you and which ones are only staying out of habit.

Step 1 - List the cards you actually use

• Pull up your banking apps or statements for the past 6 to 12 months
• Write down every credit card you have
• Mark which cards you used at least once a month
• Circle cards you used zero to two times in the whole year

→ If a card is not showing up in your real spending, it is already on thin ice. A card sitting in your drawer is usually not helping you.

Step 2 - Are the fees worth it?

• Check the annual fee for each card, including GST
• Note whether you got a waiver last year, and whether that is still likely
• List the benefits you actually used, not what you could use
• Ask one simple question: did you get clear value from this card in 2025

→ If you cannot point to a real benefit you used, or you are paying the fee out of habit, it is a sign the card is not earning its place.

Step 3 - Does this card match how you spend today?

• Look at your top spend categories now
• Groceries and essentials like FairPrice
• Transport like Grab
• Online shopping like Shopee or Lazada
• Subscriptions like Netflix, Spotify, YouTube Premium
• Travel spend, if you are flying out of Changi more often again
• Check if your card actually rewards those categories in a meaningful way
• Watch for caps, minimum spend, and conditions that you often miss

→ If your card rewards a life you no longer live, it is time to rethink it.

After you finish, every card should have a role you can explain in one line. If you cannot describe what a card is for, you probably do not need it.

Keep, switch, or cancel: a simple decision guide

After going through the checklist, each card should fall into one of 3 buckets. You do not need to optimise everything. You just need to make a clear decision for each card instead of letting it roll over by default.

1. Keep

• Keep the card if most of these apply:
• You use it regularly for your main spending
• The rewards or perks clearly offset the annual fee, or the fee is waived
• It fits how you spend today, not how you used to spend
• You know exactly what this card is for

These are your core cards. They deserve a permanent spot in your wallet.

2. Switch

• Switch if the card still makes sense in theory, but not in its current form:
• You like the card type, but the rewards no longer suit your habits
• You are hitting cashback caps too easily or missing spend requirements
• A newer card from the same or another bank better matches your spending
• You are paying a fee when a similar no fee option would do the job

Switching is often smarter than cancelling, especially if you still want the same kind of rewards.

3. Cancel

• Cancel the card if one or more of these are true:
• You have not used it in months
• You struggle to justify the annual fee
• You are keeping it "just in case"
• It duplicates what another card already does better

If a card does not earn its keep or serve a clear purpose, letting it go is usually the cleanest choice.

Common credit card mistakes at the start of the year

Are you planning to ignore that renewal notice, keep a few cards open just in case, or tell yourself you will sort it out later? These feel like harmless, practical decisions in the moment, but they are also the most common year end credit card mistakes.

When actions are delayed or taken on autopilot, fees renew, perks go unused, and outdated cards quietly stay in your wallet for another year.

1. Keeping cards "just in case"

What usually happens

Cards meant for emergencies or future plans often go untouched for an entire year. Meanwhile, annual fees continue to renew.

Why it costs you

• Typical annual fees in Singapore sit around $190 to $200 per card
• Keeping just two unused cards can cost close to $400 a year
• Over five years, that adds up to nearly $2,000 with no clear return

How to avoid it

If you cannot explain when and why you would use the card in the next few months, it likely does not need to stay. You can always reapply later if your needs change.

2. Chasing rewards you do not actually use

What usually happens

Headline numbers like "five per cent cashback" or "high miles earn rate" look attractive, but conditions get in the way.

Why it falls short

• Cashback caps and category limits reduce real returns
• A five per cent cashback card capped at $80 a month requires $1,600 in eligible spend
• Miles accumulate, but never get redeemed

How to avoid it

Look at what you actually redeemed this year, not what you could have earned. If points or miles keep piling up unused, the card is not matching your habits.

3. Paying annual fees out of habit

What usually happens

Fees post quietly and get paid simply because cancelling feels inconvenient.

Why it adds up

• A single $194 annual fee feels small
• Paid over five years, that becomes close to $1,000
• Multiply that across multiple cards, and the cost escalates quickly

How to avoid it

Set a reminder before your renewal month. If you cannot clearly justify the fee with benefits you used, request a waiver or cancel before it posts.

4. Letting similar cards overlap

What usually happens

Multiple cards reward the same spending, splitting your usage across all of them.

Why it hurts rewards

• Minimum spend requirements become harder to hit
• Splitting $2,000 monthly spend across three cards can mean missing rewards on all of them
• Complexity increases with little added benefit

How to avoid it

Keep one strong card per main spending type. Concentrating spend usually delivers better returns than spreading it thin.

A final check to start off 2026

Before 2026 whisks you away with all the travels, shopping sprees and more that await you, it's worth taking one last look at your credit cards with fresh eyes. By now, you should have a clear sense of which cards you use, which ones still deliver value, and which are only hanging around out of habit.

Keep the cards that match how you spend today, switch where a better fit exists, and cancel the rest before fees roll over. Going into 2026 with a simpler, more intentional card setup makes it easier to manage your money and avoid unnecessary costs creeping back in.

Furthermore, starting early gives you time to compare options calmly and make choices on your terms, rather than reacting after an annual fee has been charged.

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This article was first published in MoneySmart.