Getting a credit card in Singapore is not easy if you do not fulfil the annual income requirement and other criteria. However, the Monetary Authority of Singapore (MAS) relaxed the general rules at the time of issuing credit cards in 2004 which paved the way for the introduction of secured credit cards. You can apply for one of these cards even if you do not meet the minimum annual income criteria of S$30,000. However, you will have to pledge a minimum amount S$10,000 in fixed deposits in the same bank from where you are getting the card, against which credit remains secured.
Here are some of the common reasons why people often fail to qualify for a credit card:
- A history of poor credit and/or a poor credit score.
- They have retired and have an annual income of less than S$15,000 and/or do not have assets worth S$750,000.
- Their annual income is less than S$30,000.
- They are currently unemployed.
Secured credit cards are ideal for retired individuals, homemakers and others who do not have a regular income. The fixed deposit that acts as a collateral will carry on earning interest and you can hold this deposit in foreign currencies as well.
What Are the Features of Secure Credit Cards?
Some of the common features of secured credit cards are as follows:
- The credit limit with your secured credit card will be equivalent to the amount you pledge in the fixed deposit account.
- The offers you get will be limited and may not be as appealing as those that you normally get with other cards.
- The interest rates applied will not be as high as other cards.
- The minimum amount that you will have to pledge when you apply for an unsecured card is S$10,000.
- You cannot withdraw money from your fixed deposit as long as you wish to use the credit card.
What Are the Benefits of Having a Secured Credit Card?
Some of the common benefits of having a secured credit card are as follows:
- A secured credit card is an ideal way to improve your credit score during the 12-month period when your credit report is reorganised.
- You can still start enjoying the perks associated with a credit card such as cashback, cash rebates, rewards points, and more even if the offers are not as good as what you get with other cards.
- You will get to make transactions for your daily spends without using cash.
Credit Cards in Singapore That You Can Get With a Fixed Deposit Collateral
Some of the credit cards in Singapore that you can get if you open a fixed deposit as collateral are as follows:
If you do not fulfil the eligibility criteria for this credit card, you can still get this card if you have a fixed deposit collateral of at least S$20,000. Here are some of the benefits that you will enjoy with this card:
- Get 10X UNI$ on online, overseas, petrol and contactless transactions.
- Enjoy savings on petrol purchases under the UOB Fuel Power programme.
- Enjoy personal accident coverage of up to S$500,000 when you charge your travel expenses to this card.
- Get a cash rebate of up to S$120 when you apply for using your SIngPass. However, this offer is valid only until 31 December 2018.
If you do not fulfil the eligibility criteria required, you can still get HSBC Visa Platinum Credit Card when you open a fixed deposit account of at least S$10,000 with HSBC as a collateral. Here are some of the benefits that you will enjoy with this card:
- Get a cash rebate of 5% on dining, groceries and fuel purchases.
- Enjoy welcome gifts when you sign up for this card.
- Get free tickets for your kids when you pay for your movie tickets using the card.
- Enjoy redeeming the rewards you earn at more than 100 participating outlets or convert them to miles.
You can get the UOB One Card if you have a fixed deposit collateral of at least S$10,000 even if you do not fulfil all the required eligibility criteria. The benefits that you will get with the UOB One Card are as follows:
- Offers on fuel purchases at SPC and Shell fuel stations.
- A cash rebate of up to 5% on all spend.
- If you have a UOB One Account, you will get an interest of up to 3.88% p.a. on this account.
- Additional rebate with UOB SMART$ Rebate Programme.
UOB PRVI Miles Visa/Mastercard/American Express Card
To get the UOB PRVI Miles Card, you will have to either fulfil all the minimum annual income eligibility criteria or you can get the card when you deposit an amount of at least S$10,000 in a fixed deposit account with UOB. This is an air miles card and is suitable for people who travel frequently. The benefits that you will get with this card are as follows:
- 1.4 miles per dollar spent on local expenses and 2.4 miles per dollar spent on overseas expenses
- Free travel insurance worth up to S$1 million.
- Special benefits at more than 450,000 hotels around the world.
- Cash rebate of up to S$120 when you sign up for the card.
- Private butler service.
The UOB Professionals Platinum Card is another card offered by UOB that you can get even if you do not fulfil the minimum annual income criteria. You can get this card with a fixed deposit collateral of at least S$10,000 for Singapore nationals, foreigners as well as Permanent Residents. The benefits that you will get with this card are as follows:
- Dining privileges at numerous locations such as Din Tai Fung, The Fullerton Hotel Singapore, Muthu’s Curry, and more.
- A perpetual annual fee waiver.
- Fuel savings when you buy from Shell and SPC.
- SMART$ rebates of up to 10% at over 400 participating outlets in Singapore.
Before you apply for such a credit card, make sure you go through the terms and conditions carefully as with some cards you may not be able to access the funds held in your fixed deposit account linked to the credit card. With most cards, the rule states that you will get the money in your fixed deposit linked to the card only in 30 to 45 days after the card is terminated. Unlike other cards, it is a lot easier to get secured credit cards, since the only requirement is a fixed deposit amount of at least S$10,000. However, if you miss your monthly payments, your fixed deposit collateral will be at risk. Also, make sure that when you apply for a secured card, you do not withdraw your fixed deposit funds immediately.