Credit cards come with a host of features and advantages – a very good cause why credit cards are a preferred phenomenon. If you are hunting to apply for a credit card anytime quickly, here are 10 issues you undoubtedly need to have to know. These points will give you a better understanding of how credit cards perform and what you can count on from them.
Annual charges on credit cards
All credit cards supplied by banks (at least a key percentage of them), come with an annual fee. The annual fee mostly varies from one card to one more, even in the case of cards offered by the very same bank. Usually, Premier cards that provide much better benefits than standard cards come with a larger annual charge.
Although the Primary card pretty much absolutely comes with an annual fee, supplementary cards also come with an annual fee in most circumstances. In some cases, the annual charge on the supplementary card is waived for the initial year or so – this is to keep the card more competitive and in-demand. Specific banks waive the annual charge on the primary card as nicely – for the initially year, or first two years, or longer.
Annual rate of interest
All transactions you make working with your credit card attract a certain price of interest identified as the annual percentage rate of interest (APR). The interest rate is dependent on the bank that is offering the card and the type of card. The interest price for most credit cards is Singapore is among 23% p.a. and 30% p.a.
Banks let for an interest absolutely free period of about 21 days from the release of the statement (once again, this depends on the bank and the form of card) and never charge an interest if the quantity is repaid in complete inside this interest free window. If the amount isn’t paid prior to the end of the interest free period, interest charges will accordingly hold applicable.
Money advance charges
Credit cards allow consumers to make emergency cash withdrawals from ATMs. These money advances carry a handling charge of about 5%-6% of the withdrawn amount, besides interest charges that fall in the variety among 23% and 28% p.a. Interest on cash advances is computed on a every day basis at a compounding rate until the amount is repaid in full. Money advances are normally a risky phenomenon, largely thinking about the high interest charges. So if you withdraw funds utilizing your credit card, it is advisable that you repay the quantity in complete at the earliest.
Minimum month-to-month payments
As a credit card consumer, you are essential to pay a minimum quantity every month – or the whole quantity if that is probable – amounting to three% of the total month-to-month outstanding balance. Minimum payments require to be produced 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 consist of pending minimum payments from previous months, late payment charges, money advance charges, and overlimit charges, if they hold applicable.
Late payment charges
If the minimum amount isn’t paid by the payment due date, banks levy a specific 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, based on the bank providing the card.
Overlimit fees
Overlimit costs hold applicable and are levied by the bank if the allocated credit limit is exceeded. Overlimit costs can variety amongst S$40 and S$60 for credit cards in Singapore.
Cashbacks and reward points
An aspect that tends to make credit-cards a pretty exciting phenomenon is the reward points/cashbacks that can be earned on purchases. Different cards are structured differently and let you to earn either cashbacks or reward points or both, on your purchases. Some cards enable you to earn reward points on groceries, whilst some other let you earn cashbacks or reward points on air ticket bookings, retail purchases, and so forth. Cashbacks and reward points are characteristics that are precise to certain credit cards and the extent of rewards depends on the form of card and the bank providing the specific card. Reward points earned on purchases can be converted into fascinating vouchers, discounts and attractive shopping/retail acquire/online deals from the card’s rewards catalogue.
Balance transfers
Certain 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 cost-free period of 6 months – 1 year, depending on the card you have applied for. In the case of balance transfer cards, banks charge a processing charge and could also charge an interest (unlikely in a majority of situations). Immediately after the interest absolutely free period (6 months – 1 year depending on the card), regular interest charges on the card are applicable for transactions and money advances.
Air miles programmes in Singapore
Specific credit cards (largely premium credit cards) offered by some banks in Singapore enable you to earn air miles by converting your reward points earned on purchases utilizing the card. Generally, 신용카드 현금화 come with a greater annual charge owing to their premium nature. As a customer of a premium credit card, you can accumulate adequate air mile points to entirely offset your subsequent getaway!