Credit cards come with a host of capabilities and added benefits – a superior reason why credit cards are a common phenomenon. If you are searching to apply for a credit card anytime soon, here are 10 factors you undoubtedly have to have to know. These points will give you a far better understanding of how credit cards work and what you can expect from them.

Annual fees on credit cards

All credit cards provided by banks (at least a key percentage of them), come with an annual charge. The annual charge mostly varies from a single card to an additional, even in the case of cards offered by the very same bank. Usually, Premier cards that offer superior advantages than normal cards come with a higher annual charge.

Even though the Primary card nearly certainly comes with an annual fee, supplementary cards also come with an annual fee in most instances. Sometimes, the annual charge on the supplementary card is waived for the 1st year or so – this is to maintain the card more competitive and in-demand. Certain banks waive the annual charge on the key card as well – for the 1st year, or 1st two years, or longer.

kt 정보이용료 현금화 of interest

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

Banks permit for an interest free of charge period of about 21 days from the release of the statement (once again, this depends on the bank and the type of card) and never charge an interest if the quantity is repaid in complete within this interest no cost window. If the quantity is not paid ahead of the end of the interest totally free period, interest charges will accordingly hold applicable.

Money advance charges

Credit cards enable prospects to make emergency money withdrawals from ATMs. These money advances carry a handling charge of about 5%-6% of the withdrawn quantity, apart from interest charges that fall in the variety in between 23% and 28% p.a. Interest on money advances is computed on a every day basis at a compounding rate until the amount is repaid in full. Money advances are ordinarily a risky phenomenon, largely taking into consideration the higher interest charges. So if you withdraw revenue applying your credit card, it is advisable that you repay the amount in full at the earliest.

Minimum month-to-month payments

As a credit card consumer, you are necessary to pay a minimum quantity every month – or the whole amount if that’s feasible – amounting to 3% of the total month-to-month outstanding balance. Minimum payments require 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 include things like pending minimum payments from previous months, late payment charges, cash advance charges, and overlimit charges, if they hold applicable.

Late payment charges

If the minimum quantity isn’t paid by the payment due date, banks levy a certain fee, normally referred to as the late payment charge. The late payment charge for credit cards in Singapore can be anyplace in the variety amongst S$40 and S$80, depending on the bank supplying the card.

Overlimit fees

Overlimit fees 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 quite exciting phenomenon is the reward points/cashbacks that can be earned on purchases. Diverse cards are structured differently and permit you to earn either cashbacks or reward points or both, on your purchases. Some cards allow you to earn reward points on groceries, though some other let you earn cashbacks or reward points on air ticket bookings, retail purchases, etc. Cashbacks and reward points are functions that are particular to specific credit cards and the extent of benefits depends on the sort of card and the bank providing the specific card. Reward points earned on purchases can be converted into fascinating vouchers, discounts and appealing buying/retail obtain/on the web offers from the card’s rewards catalogue.

Balance transfers

Specific credit cards allow you to transfer your whole credit card balance to that specific credit card account, enabling you to consolidate your debt. Balance transfer credit cards come with an interest absolutely free period of six months – 1 year, depending on the card you’ve applied for. In the case of balance transfer cards, banks charge a processing fee and may possibly also charge an interest (unlikely in a majority of cases). Following the interest cost-free period (six months – 1 year based on the card), normal interest charges on the card are applicable for transactions and cash advances.

Air miles programmes in Singapore

Certain 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 employing the card. Typically, air miles cards come with a higher annual charge owing to their premium nature. As a customer of a premium credit card, you can accumulate sufficient air mile points to absolutely offset your next holiday!