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    Guide to choose right credit card for you in Singapore

    Finding the right credit card can be a confusing affair because of the array of choices in the market. No single card is the best for everyone. The ‘right’ card solely depends on your lifestyle choices and your spending habits. As each card has different rewards and benefits, this is not a decision that can be taken in a rush. The only way you can make the right choice is by asking the right questions and understanding your options.

    3 questions that will help you to discover the right card

    Let’s assume that you want to find a credit card that will earn you reward points. How do you find the right one? Ask yourself three questions in this order:

    • Which category do you spend mostly on?
    • What kinds of promos and bonuses are you looking for?
    • What are the rewards you want?

    Common things to look out for while selecting a credit card

    Different people want different rewards and bonuses. The points listed out below will let you find the correct credit card that suits your needs:

    • Rewards points: You can earn points with every dollar you spend on purchases, which can be redeemed later.
    • Cashback offers: You will get back a small percentage of your expense or purchase, which can be used for future purchases or help pay a part of your bill.
    • Miles: You can earn miles on your expenses and redeem them later to purchase air tickets to travel the world. Before redeeming them, make sure you have a thorough understanding of the terms and conditions.
    • Annual fees: This is the amount you have to pay to continue owning the card. But if you are a new user, most banks will waive off the annual fees for the first 1-3 years.
    • Discounts: Several banks, at times, have tie-ups with stores and restaurants to give you lucrative discounts. Make sure you read the terms and conditions associated with such discounts.
    • Balance transfers: In case you have an outstanding amount with high interest, you have the option to transfer the outstanding amount to another credit card with better interest rates. Several banks let you enjoy this service free of cost.
    • Monthly repayment conversions: Several banks will allow you to convert your huge spends into monthly instalments to make the payment easier. This will allow you to plan your expenses if you have a cash crunch.
    • Fuel rebates: This will help you to avoid fuel surcharges when you use your card at a fuel station.

    6 useful tips to find the right card

    1. Identify the type of card you need: Finding the right credit card is not hard. It just needs some good research and smart thinking. Every individual will have different spending habits and behaviour. You will have to make an honest assessment of where you spend the most and select a card that gives you attractive rewards in those same categories.
    2. Check your credit score: You need to find out which credit card offers you might be eligible for. It is mandatory to maintain a good credit score for credit approvals. If your credit score is not what you expected, check your credit reports to see what the issue is and solve them, accordingly.
    3. Check if your annual income is enough: An average card in Singapore requires you to earn S$30,000 or more in a year, which comes up to S$2,500 per month. If you spend more than your monthly income, you may have debts with high interest rates. In case if you are a student, no minimum income is required. The credit limit is usually limited to S$500 and the minimum age requirement is 18 years with parents’ consent. You can also get a supplementary card from a main cardholder, who will be liable to pay any unpaid debts.
    4. Keep a lookout for attractive rewards: The best credit cards offer a variety of benefits like cashback, flyer miles, hotel loyalty points, and so on. These rewards can be earned if you use your credit cards frequently.
    5. Select cards with extra perks: If you are not interested in credit card rewards, you can still enjoy the benefits of the card. Some of the credit cards offer free travel insurance, rental car coverage, extended warranties, and price protection.
    6. Know your credit limit: One of the best ways to keep a healthy credit score is to keep your credit utilisation ratio under 30%. In this way, you can pay off the entire bill every month without attracting high interest rates and late payment fees.

    What comes next after finding the right credit card?

    Choosing the right card is a decision that cannot be taken in a whim. Using your card wisely will let you manage your expenses and get the most of your money. If you are trying to build your credit score, then pay off your bills every month. If you have managed to get the 0% Balance Transfer deal, then stick to the debt payoff plan. Make use of your card every day to earn rewards and cashback.

    The card you have selected will help you achieve your financial goals in the most reasonable way possible. Therefore, it is absolutely necessary for you to research and compare credit cards from different banks to have a better understanding of the terms and conditions.

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