You are now studying in Polytechnic/University or just started your first job and want to get your first credit card but do not earn more than SG$30,000 per annum? You can and there are options available: Credit cards with SG$500 credit limit.
Well, SG$500 credit limit may not seems much. But these cards served me well when I started on credit cards. They helped me in building up a good credit discipline and increase my spending power when combined.
So here are 2 credit cards that I started on with SG$500 credit limit each long time ago.
Here are the requirements on these credit cards:
- Age requirement: 18 years old minimum at time of application. (21 years old for other credit cards usually.)
- Nationality: Singaporean or Singapore Permanent Resident. (Foreigners on employment pass allowed with higher annual income required usually for other credit cards.)
- Parent/Guardian consent required for applicant age below 21 at time of registration.
- Must not be a principal credit card/credit line holder.
- Non student: Minimum SG$18,000 income per annum. (Standard Chartered Manhattan Platinum MasterCard. Usually SG$30,000 minimum for other credit cards.)
What is required when applying for credit cards:
- Photocopy of NRIC/Passport.
- Computerized payslip (Latest minimum. Recommend to submit 3 months.), Income tax Notice of Assessment or 12 months CPF contribution statement. (Self employed individuals will need to submit more.)
- Completed application form.
What to watch out when applying for credit cards:
- Annual fee: About SG$30 for these cards. (Usually 1st year waived. Subsequent waiver at bank’s discretion.)
- Credit limit: SG$500. (Usually 2-4x of your monthly income at bank’s discretion for other credit cards.)
- Interest rate: About 24% per annum or a minimum amount as stipulated by bank. (Interest can be scary and you will be playing with your credit score if you default. You have been warned.)
- Statement date: Please call bank after you received your credit card to know your statement generation/cut off date. (This will help you in planning your purchases.)
- Payment grace period: About 20 days. Pay fully within grace period and there will not be any interest charge.
- Cash advancement fee: About 6% of amount advanced or a minimum amount as stipulated by bank.
- Other fees like late fee or over limit fee which you should never ever need to pay if your credit discipline is good.
How to decide which card to get:
- Your spending habit/pattern:
- If you are a party guy/gal that frequent Zouk, get Citibank Clear Visa as that credit card offer free entry and 1-for-1 drinks at Zouk.
- If you are after cashback, get Standard Chartered Manhattan Platinum MasterCard as that credit card offers 0.25% cashback in this case.
- For other credit cards, you will want to look at rewards on offer and flexibility in redeeming rewards.
- Bank: If you have any bad blood with any bank or if bank does not has a good reputation, you will not likely want to get a credit card with them. Unless benefit is unrivalled.
- Payment method:
- Internet banking (Must have!)
- SAM (Cut off time 5pm.)
- AXS. (Cut off time 8pm.)
- Payment network: Usually I recommend 1 Visa, 1 MasterCard and 1 American Express credit card per bank (At least 2 banks. Just in case 1 bank’s cards just all decide to die on you. It can happen!) for maximum acceptance across the globe. (JCB is an exotic 1 for Japan. Only offered by UOB in Singapore.)
- Gold/Platinum/Visa Signature/MasterCard Titanium/MasterCard World:
- Gold is like entry level for American Express. (E.G. American Express Singapore Airlines KrisFlyer Gold credit card.)
- Platinum is like entry level for Visa/MasterCard/JCB. Premium for American Express.
- Visa Signature is usually targeted at frequent flyers.
- MasterCard Titanium is just a fancy gimmick by MasterCard in my opinion. Only offered by OCBC in Singapore.
- MasterCard World is similar to Visa Signature in terms of level.
- Contactless payment solution:
- Visa payWave
- MasterCard PayPass
- American Express
- NETS FlashPay
Hope this helps as a good start to your journey with credit cards.
Disclaimer: Use credit card responsibly.