Compare Singaporean Credit Cards

How do credit cards work?

A credit card is a form of unsecured credit issued by banks. It allows users to make purchases without having to use cash and withdraw money from ATM machines. All credit cards come with a credit limit which is determined by the bank’s assessment of your ability to make repayments.

Credit cards are different from debit cards which are tied to actual money in a savings account. When you use a credit card, you are essentially borrowing money from the lender to pay the retailer. Then you receive a statement at the end of each billing cycle that tells you the total amount you owe the bank. By making the repayments promptly, you will not be charged any interest fees.

There are many types of credit cards available that allow you to earn various types of rewards, air miles and rebates.

What type of credit card are you looking for?

Rewards Credit Cards

Earn reward points as you spend and maximise the prizes and perks you can redeem with a rewards credit card.

Air Miles Credit Cards

Compare Air Mile credit cards to earn points on everyday purchases to redeem for your next holiday with your favourite airline.

Student Credit Cards

Manage your student expenses and establish your credit history by comparing a range of student credit cards.

Cashback Credit Cards

Earn cash back as you spend and save on groceries, petrol, dining and more.

Petrol Credit Cards

Be rewarded with discounts on your fuel when you pump at certain stations.

Balance Transfer

Move your high interest debts to a low or 0% interest balance transfer credit card and pay off your debts faster.

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Compare credit card features

How does credit card interest work?

What other features I should look out for?

For those who are new to credit cards, there are some key features worth mentioning so that you can optimise the use of your credit cards and learn about the related fees and charges involved.

• Credit limit. The credit limit is the amount you can use on your credit card. For student credit cards available in Singapore, the credit limit is set at S$500 for those who are not drawing an income. Regular credit cards usually require an annual income of at least S$30,000 and the maximum unsecured credit limit is set at 4 times the amount of your monthly salary. This does not mean that you will get the maximum credit limit for your credit card, as the rule applies to all the combination of all credit cards and unsecured facilities you with the bank.
• Grace Period. The grace period is an interest-free period where you can use your credit cards without incurring any finance charges. This is usually between a period of 20-25 days.
• Rewards. One perk of using a credit card is that it allows you to earn various types of rewards when you use them for payments. Reward types include cash rebates, discounts on partner merchants, earning air miles which can then used for redemption of free flights or upgrades, as well as reward points which you can exchange for vouchers.
• Security. There are a number of security features that come with credit cards that help to make your transactions safe and prevent fraud. All banks require customers to activate their new credit cards before they can use it so as to prevent any intercepted cards to be used. Features include transaction alerts when your pre-defined limit has been made and One-Time passwords on merchant websites.

What are the costs of a credit card?

• Repayments. You’re free to repay as much as you like as often as you like. You’re required to make the minimum repayment when your statement is issued. The minimum repayment is usually 5% of your outstanding balance. You will pay a late payment fee if you don’t make the minimum repayment by the statement due date.

• Annual fee. This is the cost to own a credit card. The annual fee ranges from S$0 to hundreds of dollars depending on the credit card type. The credit card annual fee is deducted from your available credit and accrues interest at the purchase rate if it isn’t paid in the first statement period.

• Interest rates. There are no interest charges levied on your purchases if you pay off the card balance within the grace period. Beyond that, credit cards here typically charge an interest of 24-28% per annum on your card balances. As the interest is compounded and charged on a daily basis, they can easily accumulate if you keep rolling over your balances month-on-month.

• Other fees. Other fees you may run into include late payment fees, overlimit fees for spending past your credit limit, rewards program membership fees and cash advance fees.

Credit card application tips

Applying for a credit card doesn’t have to be complicated.

1. Assess your needs. Before you begin your search, spend some time considering what you want, need and can afford with your next credit card.
2. Compare your options. Once you’ve decided what type of card you want, it’s time to begin comparing your options.
3. Are you eligible? Know the requirements for the card application – do you need a minimum income, and do you meet the age limit?
4. Know your credit score. You should request a copy of your credit history before applying, so you can correct any possible errors on it and see exactly what the bank will be seeing when they assess your application.
5. Lower your credit utilisation ratio. If you already have a credit card balance, it’s wise to pay off your existing balances before submitting a new credit card application.
6. Don’t apply for multiple cards at once or within a short period. You may be tempted to apply for a second card just in case your first one doesn’t get approved, but don’t. Each credit enquiry that a lender makes about your credit history leaves a new mark on your credit file for five years.

12 essential credit card tips to ace your application

Who is eligible for a credit card in Singapore?

Make sure you confirm that you meet the eligibility criteria before you submit your application, as rejected credit card applications can have a negative impact on your credit score. Eligibility requirements usually include:

• Age. Cardholders must be at least 18 years of age for student cards, 21 years old for regular credit cards
• Residential status. Most credit cards are open to application for Singaporeans, permanent residents(PR) and foreigners alike, subject to varying income requirements and additional documents.
• Minimum income. The minimum income requirement will vary between cards, but they usually start at S$30,000 p.a. for most basic credit cards and S$80,000 and above for higher-tier products.
• Credit history. All credit card issuers require applicants to have a good credit history.

Understanding your credit score

In Singapore, bankers and lenders mostly rely on the CBS credit score to determine the repaying capacity of the applicant and the probability of default on loans. The CBS Credit score is a 4 digit number computed by the Credit Bureau Singapore (CBS) based on the applicant’s record of past repayments of loans and credit card debts.

The score ranges from 1000 to 2000, whereby 1000 indicates a high risk of default and is thus considered a poor credit score. Conversely, 2000 is an excellent credit score, indicating the lowest risk of default. The credit score is accompanied by a risk grade, the lowest risk grade being AA and the highest being HH.