What is the difference between credit and debit cards?
Credit cards | Debit cards |
allows for cashless payments | allows for cashless payments |
allows partial payment, with the remaining balance being transferred to the next month | full payment is required |
What are the advantages of owning a credit card?
Credit cards allow us to make payment for purchases later when payment is due. In other words, with credit cards, we can essentially make "interest-free loans"
With credit cards, it is more convenient for you as you do not need to carry around much cash with you
Banks will provide you a summary of all your credit card transactions for every month. These summaries spare you the trouble of taking down your transactions by yourself and maintaining these records
By getting a credit card, you are signing up for many discounts, lucky draws, free travel insurance and frequent flyer programs
Types of credit cards
Ordinary/classic: Offered to you if you earn at least $30,000 per year
Prestige: Prestige credit cards are similar to Classic credit cards. However, the key difference is that prestige credit cards have a higher spending limit and they also offer additional benefits.
Affinity: issued in conjunction with sponsoring groups like university alumni groups, country clubs and other prestigious organizations
Which credit card to choose?
There are many banks in Singapore, and they all offer different credit cards with different benefits. It may seem overwhelming at first, but not to worry! Here is a list of factors you should consider when choosing a credit card.
Annual fee
interest rate for unpaid balances
spending and credit limits
minimum monthly payment
amount of cash advance and fees
entrance fee
availability of supplementary cards and their fees
late payment penalties
interest-free period
perks for members
If you are still confused about which credit card to choose, or have any other questions, feel free to drop me a Whatsapp text or call me at 97901583.
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