These days living in Singapore without owning at least 1 credit card is becoming more of a myth. These plastics have found a way into every aspect of our lives and more and more people are getting credit cards the second they become eligible to have one. So should you jump on the bandwagon and get a credit card the moment you get a job?
There are a lot of fears associated with credit cards even though people live and breathe with them every day. The fear of overspending, not paying full balances, credit card debt, fraud etc. But that is just one side of it. Did you know that owning a credit card can help cultivate good habits for when you set out on your own to build your life and career?
The moment you get a job, you will start having steady income every month, which means you will have more purchasing power. It is very easy to lose track of your spending, satisfying your wants instead of your needs and going broke by the end of the month. But if you get a credit card along with your first job, you can track your spending much better. Your monthly statements will tell you exactly how much you have been spending and where. It will help you create a better budget that you can allot for various aspects of your living such as groceries, dining, shopping etc.
Knowing how much you will have to repay on your credit card every month will teach you to stick to the budget you have created and not overspend. This is because you may not be able to afford high debt and overspending on your credit card with your first job. And if you fail to keep up with your payments, you know that your debt will snowball. It will help you keep yourself in check.
Upon getting your first job, you will also have a lot of responsibilities, especially if you have moved out of your home. Various utility bills such as cable bill, telephone/mobile bills, electricity bills etc. will start piling up month-on-month. It is easy to miss one or more payments for various reasons. To avoid doing that most credit cards give you the option of consolidating all your recurring bill payments onto your card and making a single payment every month. This allows you to become more organized with managing your recurring bill payments. Without owning a credit card, you may find it overwhelming to manage a lot of separate bill payments and you may even end up missing payments.
Now that you have started earning, there may be several points in your life and career that will require you to take financial assistance through various lines of credit. The best rates and deals are offered to those who have a good credit history and credit score. You can build your credit history at the start of your career by getting a credit card. Now that you have a job, it will be relatively easy for you to get a credit card. So once you get your card, start paying your bills in time and in full if possible. If not, then always pay more than the minimum due. This will help you build a credit history and a good credit score. This is because when you start your first job, you may not have many open lines of credit that can tank your credit score. So getting a credit card now can be very useful.
Getting your first job and moving out of your home is a huge life changing step. Don’t you miss your parents reminding you of everything you need to get done that day? There is no substitute for that feeling but credit card text and email reminders are the closest you will come to it. Signing up for these reminders can help save a lot of time because you don’t have to login to your account each time you want to check your payment due dates, you will instead get reminders when the due dates are nearing.
Credit cards are not always about payments and debt. They are also about promotions and rewards. Depending on which type of credit card you own, you may earn reward points, cash back, cash rebate and air miles on your eligible purchases. Therefore, you are not just spending on your credit card, you are also getting back some of it. So after you are done making all your payments and done with your work for the day, go out and treat yourself and also let your credit card treat you back.
Tip: Which credit card you should get the moment you get a job
You may not be eligible for all credit cards the moment you get a job. Most credit cards have a minimum income criteria that you must meet. However, if this is your first job, the MANHATTAN S$500 Credit Card offered by Standard Chartered can be a good option for you for the reasons below:
You can do your own research, look into credit card options that are suited for your needs and lifestyle and pick one. Credit cards are only dangerous when you don’t use them right. But they can do wonders to make your life easier when you use them for the right reasons and purposes.