Credit cards come with a host of options and rewards – a very good purpose why credit cards are a popular phenomenon. If you are seeking to apply for a credit card anytime quickly, right here are ten issues you unquestionably have to have to know. These points will give you a greater understanding of how credit cards work and what you can anticipate from them.
콘텐츠이용료 현금화 on credit cards
All credit cards provided by banks (at least a big percentage of them), come with an annual fee. The annual fee mostly varies from 1 card to yet another, even in the case of cards presented by the identical bank. Normally, Premier cards that supply greater added benefits than typical cards come with a larger annual fee.
While the Major card virtually undoubtedly comes with an annual fee, supplementary cards also come with an annual fee in most situations. Sometimes, the annual fee on the supplementary card is waived for the initially year or so – this is to retain the card more competitive and in-demand. Particular banks waive the annual fee on the primary card as nicely – for the first year, or initial two years, or longer.
Annual rate of interest
All transactions you make working with your credit card attract a particular rate of interest recognized as the annual percentage price of interest (APR). The interest rate is dependent on the bank that’s supplying the card and the type of card. The interest rate for most credit cards is Singapore is between 23% p.a. and 30% p.a.
Banks allow for an interest no cost period of about 21 days from the release of the statement (once again, this depends on the bank and the sort of card) and don’t charge an interest if the quantity is repaid in full within this interest cost-free window. If the quantity isn’t paid ahead of the finish of the interest no cost period, interest charges will accordingly hold applicable.
Money advance charges
Credit cards enable buyers to make emergency cash withdrawals from ATMs. These money advances carry a handling charge of about 5%-6% of the withdrawn quantity, besides interest charges that fall in the variety in between 23% and 28% p.a. Interest on money advances is computed on a everyday basis at a compounding rate till the quantity is repaid in complete. Cash advances are usually a risky phenomenon, mostly thinking about the higher interest charges. So if you withdraw dollars 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 buyer, you are needed to spend a minimum amount each month – or the complete quantity if that is attainable – amounting to 3% of the total monthly outstanding balance. Minimum payments have to have to be made 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 previous months, late payment charges, money 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, usually referred to as the late payment charge. The late payment charge for credit cards in Singapore can be anyplace in the range between S$40 and S$80, based on the bank supplying the card.
Overlimit costs
Overlimit fees hold applicable and are levied by the bank if the allocated credit limit is exceeded. Overlimit fees can range involving 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. Distinctive cards are structured differently and allow you to earn either cashbacks or reward points or both, on your purchases. Some cards permit 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 on. Cashbacks and reward points are capabilities that are precise to certain credit cards and the extent of advantages depends on the kind of card and the bank supplying the particular card. Reward points earned on purchases can be converted into exciting vouchers, discounts and desirable purchasing/retail purchase/on the web offers from the card’s rewards catalogue.
Balance transfers
Specific credit cards allow you to transfer your complete credit card balance to that certain 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 charge and could also charge an interest (unlikely in a majority of circumstances). Soon after the interest free period (six months – 1 year based on the card), standard interest charges on the card are applicable for transactions and cash advances.
Air miles programmes in Singapore
Certain credit cards (mainly premium credit cards) supplied by some banks in Singapore enable you to earn air miles by converting your reward points earned on purchases working with the card. Ordinarily, air miles cards come with a higher annual fee owing to their premium nature. As a consumer of a premium credit card, you can accumulate sufficient air mile points to entirely offset your next holiday!