Credit cards come with a host of capabilities and rewards – a good reason why credit cards are a well-known phenomenon. If you are seeking to apply for a credit card anytime quickly, here are 10 items you surely want to know. These points will give you a far better understanding of how credit cards perform and what you can expect from them.

Annual costs on credit cards

All credit cards presented by banks (at least a important percentage of them), come with an annual fee. The annual fee mostly varies from a single card to another, even in the case of cards provided by the exact same bank. Commonly, Premier cards that present greater positive aspects than standard cards come with a higher annual fee.

Even though the Key card almost undoubtedly comes with an annual charge, supplementary cards also come with an annual charge in most cases. Occasionally, the annual fee on the supplementary card is waived for the very first year or so – this is to hold the card far more competitive and in-demand. Specific banks waive the annual charge on the principal card as effectively – for the 1st year, or initially two years, or longer.

Annual price of interest

All transactions you make employing your credit card attract a specific price of interest known as the annual percentage rate of interest (APR). The interest rate is dependent on the bank that’s supplying the card and the form of card. The interest rate for most credit cards is Singapore is between 23% p.a. and 30% p.a.

Banks permit for an interest totally free period of about 21 days from the release of the statement (once more, this depends on the bank and the sort of card) and do not charge an interest if the amount is repaid in complete inside this interest no cost window. If the amount is not paid ahead of the end of the interest cost-free period, interest charges will accordingly hold applicable.

Cash advance charges

Credit cards allow buyers to make emergency cash withdrawals from ATMs. These cash advances carry a handling charge of about 5%-6% of the withdrawn quantity, in addition to interest charges that fall in the range amongst 23% and 28% p.a. Interest on cash advances is computed on a each day basis at a compounding rate till the quantity is repaid in full. Money advances are typically a risky phenomenon, mostly taking into consideration the higher interest charges. So if you withdraw money making use of your credit card, it is advisable that you repay the quantity in full at the earliest.

Minimum month-to-month payments

As a credit card client, you are essential to spend a minimum quantity every single month – or the whole quantity if that’s probable – amounting to three% of the total month-to-month outstanding balance. Minimum payments have to have to be produced by the payment due date if late payment charges have to avoided. The minimum payment in your credit card monthly statement can also incorporate pending minimum payments from prior months, late payment charges, money advance charges, and overlimit charges, if they hold applicable.

Late payment charges

If the minimum quantity is not paid by the payment due date, banks levy a certain charge, typically referred to as the late payment fee. The late payment charge for credit cards in Singapore can be anyplace in the range in between S$40 and S$80, based on the bank offering the card.

Overlimit costs

Overlimit costs hold applicable and are levied by the bank if the allocated credit limit is exceeded. Overlimit charges can range among S$40 and S$60 for credit cards in Singapore.

Cashbacks and reward points

An aspect that makes credit-cards a fairly exciting phenomenon is the reward points/cashbacks that can be earned on purchases. Different cards are structured differently and enable you to earn either cashbacks or reward points or each, on your purchases. Some cards enable you to earn reward points on groceries, while some other let you earn cashbacks or reward points on air ticket bookings, retail purchases, and so forth. 온라인 카드 and reward points are options that are particular to specific credit cards and the extent of rewards depends on the form of card and the bank providing the certain card. Reward points earned on purchases can be converted into fascinating vouchers, discounts and desirable shopping/retail purchase/on line bargains from the card’s rewards catalogue.

Balance transfers

Particular credit cards let you to transfer your entire 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 6 months – 1 year, based on the card you’ve applied for. In the case of balance transfer cards, banks charge a processing charge and may well also charge an interest (unlikely in a majority of situations). Just after the interest no cost period (6 months – 1 year based on the card), regular interest charges on the card are applicable for transactions and money advances.

Air miles programmes in Singapore

Certain credit cards (mainly premium credit cards) presented by some banks in Singapore allow you to earn air miles by converting your reward points earned on purchases utilizing the card. Commonly, air miles cards come with a greater annual charge owing to their premium nature. As a customer of a premium credit card, you can accumulate sufficient air mile points to completely offset your next holiday!