Read the latest news about Credit Cards in Singapore and the best money saving tips.
What type of credit card should I get?
There are three main types of credit cards: cashback, miles and rewards. You can read our breakdown of cashback vs miles vs rewards to find out which is best suited for your lifestyle.
What should I look out for when choosing a credit card?
Besides considering the type of credit card to go for, also consider:
How much must I earn to get a credit card?
Most credit cards require you to earn a minimum annual income of S$30,000 for Singaporeans and Permanent Residents or S$40,000 for foreigners. Some exclusive credit cards require a minimum annual income of S$80,000 or more. Do prepare proof of income during your application.
How many credit cards can I have?
There isn’t any limit legislated, but bear in mind that the more credit cards you own, the more bills you have to keep track of and pay. Missing credit card payments may result in adverse effects on your credit score and high interest charges (about 25% p.a.) which can easily snowball.
Credit cards allow you to spend on your purchases today and make payment in the future, when it’s time to settle your monthly bill. If you miss the monthly payment, you will be charged a hefty interest rate of around 25% p.a.
The main draw about credit cards is that they help ease cash flow – you don’t have to suffer an immediate outflow of money as you’re spending ‘future money’. Besides being able to spend before you receive your pay, credit cards also reward you for your spending in the form of cashback, miles or reward points.
You can apply for a credit card online or using physical forms available at banks. Fill up the personal details required, submit the relevant documents (such as your NRIC and payslip or latest CPF statements), and wait for the application to be approved.
Most banks also offer the option of applying via MyInfo using SingPass. Applying via MyInfo speeds up the application process as most of the information required would have been pre-filled in for you. Sometimes, there are promos where you get rewarded cash gifts by applying with MyInfo.
When using a debit card, the money you spend is immediately deducted from the bank account linked to the debit card. You cannot spend more than the amount you currently have in your account.
On the other hand, credit cards allow you to spend on credit. This means that you do not actually make the payment for the purchase until you receive your credit card statement at the end of the statement or calendar month.
There are three main types of credit cards: cashback, miles and rewards cards. The credit card you choose would depend on your spending habits and personal preference. You can read this article to find out which of the three types is best for you.
If you are looking for a credit card for a specific spending type, you can check out these articles to find the best credit cards for:
Visa, Mastercard and American Express are different credit card payment networks. Most credit card providers offer one or two of the card networks for their credit cards. For example, for DBS Altitude, you can get either the DBS Altitude Visa Signature or DBS Altitude American Express. UOB PRVI on the other hand, offers all three options — UOB PRVI Miles Visa UOB PRVI Miles Mastercard and UOB PRVI Miles American Express.
From a cardmember’s standpoint, the payment in general does not differ, although there are a handful of places that might not accept American Express cards. The perks offered by these card providers do make a difference, in terms of dining promotions, airport transfers, lounge access, hotel benefits and more.
The most common fee you’ll incur with a credit card is the annual fee. This annual fee typically falls just under S$200 each year, although it differs from card to card. If you’re not keen on paying this annual fee, you’ll be glad to know that some credit cards come with a free annual fee waiver, while others waive your annual fee when you spend a certain amount each year.
Other credit card fees include:
There is a minimum monthly payment you have to make for your credit card bill. This is the amount you would have to pay in the event you are unable to pay your credit card bill. The minimum monthly payment is typically 3% of the total balance or S$50, whichever is higher. But note that the outstanding balance would incur interest charges that are applicable on a daily basis until the full payment is received.
To avoid credit card fraud, you can set up Two-Factor Authentication (2FA) for all your bank accounts. You should be mindful to keep your passwords, PIN code and One-Time Password (OTP) to yourself. During correspondences with your bank or credit card provider, always check the source of the message or email to ensure it is genuine.
You can also read this article to get tips on how to prevent cyber attacks and safeguard your money.
If you’ve decided on the credit card to apply for, you can check out the promotions available on SingSaver. These promotions are a further incentive for you to sign up for the credit card, with rewards that range from cash via PayNow to free gifts such as wireless earbuds or GrabFood vouchers.
Here’s what you should look out for when signing up for a credit card promotion:
When does the promotion expire? Be sure to sign up for the credit card before the promotion deadline.
Two of the most common types of rewards are air miles and cash back. The rewards provided may differ depending on the cards in use, or the card issuer or banks - some cardholders can earn rewards for simply spending in the form of cash back, air miles, free gifts, gift vouchers and more. Some cards are better suited for certain users such as air miles cards which is best for those who frequently book flights and hotels, enabling them to quickly earn and rack up air miles as well as enjoy the various travel-related benefit a travel-centric credit card might offer.
Singsaver takes the financial security of our users very seriously and more than anyone else, we know better that there are products to suit for every niche be it air miles, cashback or reward points.
Glossary terms to know for first-time credit card users