How to use the right credit cards for Chinese New Year spending

Chinese New Year comes with predictable spending. Ang bao for family and friends. Reunion meals. Grocery runs. Gifts. Sometimes, even travel. For many people, it's also one of the few times in the year when credit cards get used a lot more than usual.

So, I asked our readers whether they consciously choose different credit cards for different types of spending. Many said they do.

Still, around 28 per cent said they default to one familiar card, especially during the busy festive period, when convenience tends to trump optimisation — something I'm guilty of too when Deepavali rolls around.

When spending happens quickly and frequently, most people default to whichever card is easiest to reach, whether in their wallet or on their phone.

In this piece, we'll break down common Chinese New Year spending categories, explain which credit card features tend to matter for each, highlight easy-to-miss reward pitfalls, and share a simple way to think about using the right card for the right expense.

Where does your money typically go during CNY?

Once you see these categories laid out, it becomes clearer why using a single credit card for everything isn't always ideal.

Reunion meals and dining

Restaurant bookings to caterers and takeaway, dining spend often spikes during this period. These transactions are usually clearly coded, which makes them easier to match to specific credit card features.

Groceries and festive essentials

Supermarket runs for cleaning supplies or equipment, and ingredients for home-cooked meals fall into this category. Individually, these purchases may not look large, but they tend to add up quickly over the festive period.

Gifting

This includes gifts, clothing for visiting, decorations, hampers, and other one-off festive items. Spending here is often more discretionary and less frequent, which can affect how rewards are earned.

Travel and transport

Not everyone travels during Chinese New Year, but for those who do, flights, accommodation, transport, and overseas spending can form a meaningful part of festive expenses.

How different CNY spending types match to card features

This is where things get practical.

Different cards reward different types of spending. Some are designed to give higher cashback on dining, others work better for everyday essentials like groceries, and some are more suited for bigger-ticket purchases like travel.

Instead of trying to find one "best" card, it's often easier to start with the type of spending you're doing and match it to the kind of rewards your card is built for.

The table below shows how different spending categories commonly line up with certain credit card features, along with examples of cards that fit each profile.

A quick note on why rewards don't always show up as expected

Two common things tend to catch people off guard during festive spending:

• Cashback caps: some cards only reward the first portion of spending each month, then revert to a lower base rate
• Merchant classification: a reunion dinner at a hotel restaurant may be tagged as "hotel" rather than "dining", which can affect bonus rewards

When rewards don't appear the way you expected, it's usually due to these behind-the-scenes rules-not because you did anything wrong.

Optimising for CNY could mean better card habits long term

The way you spend during Chinese New Year is often a reflection of how you spend the rest of the year. Just that it's a little more concentrated.

Getting comfortable matching spending types to card features during CNY can make everyday spending easier to think about too. Not because you're chasing rewards, but because you understand how your cards actually work.

That kind of understanding tends to carry further than any single festive period, and can benefit you in the long term.

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This article was first published in MoneySmart.