Credit cards come with a host of features and benefits – a great cause why credit cards are a well-liked phenomenon. If you are hunting to apply for a credit card anytime soon, right here are 10 items you absolutely require to know. These points will give you a improved understanding of how credit cards function and what you can count on from them.
Annual charges on credit cards
All credit cards offered by banks (at least a key percentage of them), come with an annual charge. The annual charge mostly varies from 1 card to a further, even in the case of cards supplied by the similar bank. Generally, Premier cards that supply superior positive aspects than typical cards come with a higher annual charge.
Even though the Key card practically absolutely comes with an annual charge, supplementary cards also come with an annual fee in most circumstances. In some cases, the annual fee on the supplementary card is waived for the first year or so – this is to hold the card extra competitive and in-demand. Particular banks waive the annual charge on the main card as effectively – for the 1st year, or 1st two years, or longer.
Annual rate of interest
All transactions you make using your credit card attract a certain price of interest known as the annual percentage rate of interest (APR). The interest price is dependent on the bank that is supplying the card and the form of card. The interest price for most credit cards is Singapore is in between 23% p.a. and 30% p.a.
Banks allow for an interest absolutely free period of about 21 days from the release of the statement (once more, this depends on the bank and the type of card) and do not charge an interest if the amount is repaid in full inside this interest cost-free window. If the quantity isn’t paid prior to the finish of the interest free period, interest charges will accordingly hold applicable.
Money advance charges
Credit cards allow consumers to make emergency money withdrawals from ATMs. 콘텐츠이용료 현금화 carry a handling charge of about five%-6% of the withdrawn amount, in addition to interest charges that fall in the variety among 23% and 28% p.a. Interest on cash advances is computed on a daily basis at a compounding rate until the amount is repaid in full. Money advances are generally a risky phenomenon, mostly contemplating the high interest charges. So if you withdraw cash working with your credit card, it is advisable that you repay the quantity in full at the earliest.
Minimum monthly payments
As a credit card customer, you are necessary to pay a minimum quantity every single month – or the whole amount if that is attainable – amounting to three% of the total monthly outstanding balance. Minimum payments have to have to be created by the payment due date if late payment charges have to avoided. The minimum payment in your credit card month-to-month statement can also contain pending minimum payments from earlier months, late payment charges, cash advance charges, and overlimit fees, if they hold applicable.
Late payment charges
If the minimum amount isn’t paid by the payment due date, banks levy a certain fee, commonly referred to as the late payment fee. The late payment fee for credit cards in Singapore can be anywhere in the variety involving S$40 and S$80, depending on the bank offering the card.
Overlimit fees
Overlimit fees hold applicable and are levied by the bank if the allocated credit limit is exceeded. Overlimit costs can range between S$40 and S$60 for credit cards in Singapore.
Cashbacks and reward points
An aspect that makes credit-cards a pretty thrilling phenomenon is the reward points/cashbacks that can be earned on purchases. Different cards are structured differently and permit you to earn either cashbacks or reward points or each, on your purchases. Some cards enable you to earn reward points on groceries, though some other let you earn cashbacks or reward points on air ticket bookings, retail purchases, and so on. Cashbacks and reward points are capabilities that are precise to certain credit cards and the extent of added benefits depends on the kind of card and the bank supplying the specific card. Reward points earned on purchases can be converted into exciting vouchers, discounts and desirable purchasing/retail purchase/on-line deals from the card’s rewards catalogue.
Balance transfers
Particular credit cards enable you to transfer your entire credit card balance to that particular credit card account, enabling you to consolidate your debt. Balance transfer credit cards come with an interest free period of six months – 1 year, based on the card you’ve applied for. In the case of balance transfer cards, banks charge a processing fee and could also charge an interest (unlikely in a majority of circumstances). After the interest absolutely free period (six months – 1 year based on the card), standard interest charges on the card are applicable for transactions and money advances.
Air miles programmes in Singapore
Particular credit cards (mostly premium credit cards) supplied by some banks in Singapore let you to earn air miles by converting your reward points earned on purchases utilizing the card. Typically, air miles cards come with a greater annual charge owing to their premium nature. As a buyer of a premium credit card, you can accumulate sufficient air mile points to totally offset your next holiday!