Should you find yourself in a pickle while trying to pay off your credit card or line of credit debts with their insurmountable interest charges growing higher every month, a DBS Cashline Balance Transfer might be something you ought to look into. The DBS Cashline Balance Transfer is a personal line of credit you can use to refinance your credit card or line of credit debts. It is a tool to reduce your debt in a more affordable way by helping you save on interest. It does so by offering you a 0% p.a. interest rate for the duration of the loan, or tenure - which lasts a maximum of 12 months.
By transferring all your outstanding debt to a 0% interest rate loan, you can avoid paying 19% - 29% p.a. credit card or line of credit interest. Thus, you have consolidated your multiple debts into one interest-free account. You can opt to transfer the balance from any existing credit card or credit line from another bank to DBS Cashline and in doing so, pay off your debt faster.
First off, you will need to figure out the credit limit of your balance transfers. This amount will depend entirely on your credit card or line of credit accounts’ balance and your monthly salary.
To further understand how your balance transfer credit limit depends on your existing card or line of credit balance, just look at the following example.
Say you have a credit limit of S$15,000 with your existing credit card and you already charged S$4,000 to it. S$$11,000 is the balance you may be able to transfer. Of that, with DBS, the maximum amount you can borrow (your credit limit) from your balance transfer account will be 93% of $11,000, or S$10,230.
The DBS Cashline Balance Transfer account has an interest-free period of 6 months and 12 months. However, in lieu of that, a processing fee will be charged. This processing fee is a one-time fee and is a fixed percentage of your balance transfer amount. With DBS Cashline, up to 4.5% administration fee will be charged to the balance transfer approved amount.
For example, a S$10,000 balance transfer for 12 months at the current administration fee rate of 4.5% will result in S$450 being debited from your account. Assuming a S$10,000 balance transfer amount:
|Tenure||6 Months||12 Months|
|(Previous) Credit card interest @ 24%||S$1,200||S$2,400|
|Interest from Cashline @ 0%||S$0||S$0|
|One-time admin. fee||S$250 (2.5%)||S$450 (4.5%)|
|Savings||S$950 (79% savings)||S$1,950 (81% savings)|
As you can see from the above table, had you kept your existing credit card for one more year, you would have paid an additional interest of S$2,400. Even with a deduction of S$450, getting a balance transfer with DBS Cashline at 0% interest for that same year would have saved you S$1,950 in additional interest payments.
Once the promotional period expires, the prevailing credit card interest rate will be charged on the remaining balance on your account. For DBS, this interest rate would amount to 25.90% p.a.
Therefore, it is advisable that you pay off your balance during the promotional period, if you want to avoid incurring more interest than you can handle - and effectively defeating the purpose of getting a Balance Transfer in the first place.
With a balance transfer, you are not expected to pay a fixed amount every month. It is entirely up to your discretion how much you want to repay every month. That is, so long as you pay the minimum payment amount. With DBS Cashline Balance Transfer the minimum monthly payment is either 3% of your outstanding balances, or S$50, whichever is higher. Should you fail to meet the minimum monthly payment, a late payment charge at a rate the bank determines will apply.
|Type of rate/fee||6 Months||12 Months|
|Interest rate||0% p.a.||0% p.a.|
|Processing fee||- Online applications: 2.5% p.a. - Offline applications: 3.58%||- Online applications: 4.5% p.a. - Offline applications: 6.38%|
|EIR (online applications)||- Online applications: 5.27% p.a. - Offline applications: 7.52%||- Online applications: 5.06% p.a. - Offline applications: 7.12%|
|Annual fee||S$100 (waived for 1st year)|
|Late payment fee||S$105|
|Minimum interest charge||S$10|
|Minimum monthly repayment||Higher of: S$50 or 2.5% of outstanding balance|
|Interest adjustment on late payments||6% on top of Effective Interest Rate|
For a DBS Cashline Balance Transfer, you must have a DBS Cashline account.
If you are an existing Cashline customer, no documents will be required for this facility. However, if you are a new customer, then you must submit a few required documents in order to apply for a DBS Cashline account:
For salaried employees:
For self-employed individuals:
For individuals earning variable or commission-based income:
In addition to that, the following eligibility criteria apply if you need to open a Cashline account:
If you have a Cashline account, you may apply online for the balance transfer. If you require further information, you may request the back to contact you by filling their contact form available on the bank’s website.
Q. How does the processing fee get applied?
A. The processing fee will be directly deducted from the Cashline account.
Q. How will DBS Cashline Balance Transfer help you?
A. During your balance transfer period, the interest payments you make will be lower than the payments you are making currently on your unsecured credit lines.
Q. How can I increase my credit limit on Cashline?
A. If you receive a salary hike or your credit score has gone up, you are eligible for a credit limit increase. Just fill up the DBS Cashline Credit Limit Review Form and send it to DBS with your income documents.
Q. Can I transfer a credit card balance from overseas to DBS Cashline Balance Transfer?
A. No. You can only transfer balances from loans or cards issued in Singapore.
Q. Can I carry out a balance transfer to DBS if I have more than one line of credit?
A. Yes. However, the cumulative balance on the different credit lines that you wish to transfer cannot be greater than your ten months’ salary (subject to terms and conditions). Also, the same balance cannot not exceed your approved credit limit either. If both conditions are met, you may transfer the balance from multiple lines of credit.
Q. Can I continue earning reward points on DBS Cashline Balance Transfer?
A. No. You will not earn any reward points on your balance transfers.
Q: Can I repay my balance transfer before the interest-free period ends?
A: Yes. You can repay your balance as early as you want. No early repayment charges will apply.