Credit cards come with a host of attributes and advantages – a fantastic purpose why credit cards are a common phenomenon. If you are hunting to apply for a credit card anytime quickly, here are 10 issues you absolutely will need to know. These points will give you a greater understanding of how credit cards work and what you can anticipate from them.

Annual fees on credit cards

All credit cards presented by banks (at least a big percentage of them), come with an annual charge. The annual charge mainly varies from one particular card to a further, even in the case of cards supplied by the identical bank. Usually, Premier cards that supply far better positive aspects than normal cards come with a larger annual charge.

While the Major card pretty much undoubtedly comes with an annual fee, supplementary cards also come with an annual charge in most instances. Sometimes, the annual charge on the supplementary card is waived for the first year or so – this is to preserve the card more competitive and in-demand. Specific banks waive the annual fee on the major card as properly – for the 1st year, or first two years, or longer.

Annual price of interest

All transactions you make making use of your credit card attract a certain price of interest identified as the annual percentage rate of interest (APR). The interest rate is dependent on the bank that is offering the card and the form of card. fe-acc18 ru for most credit cards is Singapore is among 23% p.a. and 30% p.a.

Banks let for an interest cost-free period of about 21 days from the release of the statement (once more, this depends on the bank and the sort of card) and do not charge an interest if the amount is repaid in full inside this interest cost-free window. If the amount is not paid ahead of the end of the interest cost-free period, interest charges will accordingly hold applicable.

Money advance charges

Credit cards allow clients to make emergency cash withdrawals from ATMs. These money advances carry a handling charge of about five%-6% of the withdrawn amount, apart from interest charges that fall in the variety amongst 23% and 28% p.a. Interest on cash advances is computed on a everyday basis at a compounding rate until the amount is repaid in complete. Cash advances are generally a risky phenomenon, largely contemplating the high interest charges. So if you withdraw money applying your credit card, it is advisable that you repay the quantity in full at the earliest.

Minimum monthly payments

As a credit card customer, you are needed to spend a minimum quantity every single month – or the complete amount if that’s feasible – amounting to 3% of the total monthly outstanding balance. Minimum payments require to be created 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 pending minimum payments from preceding months, late payment charges, cash advance charges, and overlimit costs, if they hold applicable.

Late payment charges

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

Overlimit fees

Overlimit costs hold applicable and are levied by the bank if the allocated credit limit is exceeded. Overlimit costs can range involving S$40 and S$60 for credit cards in Singapore.

Cashbacks and reward points

An aspect that tends to make credit-cards a quite exciting phenomenon is the reward points/cashbacks that can be earned on purchases. Unique cards are structured differently and let you to earn either cashbacks or reward points or each, on your purchases. Some cards enable you to earn reward points on groceries, even though some other let you earn cashbacks or reward points on air ticket bookings, retail purchases, etc. Cashbacks and reward points are capabilities that are specific to particular credit cards and the extent of benefits depends on the kind of card and the bank providing the distinct card. Reward points earned on purchases can be converted into exciting vouchers, discounts and appealing buying/retail obtain/on-line bargains from the card’s rewards catalogue.

Balance transfers

Specific credit cards let you to transfer your whole credit card balance to that distinct credit card account, enabling you to consolidate your debt. Balance transfer credit cards come with an interest free period of 6 months – 1 year, based on the card you’ve applied for. In the case of balance transfer cards, banks charge a processing charge and could also charge an interest (unlikely in a majority of situations). After the interest free period (six months – 1 year depending on the card), regular interest charges on the card are applicable for transactions and money advances.

Air miles programmes in Singapore

Specific credit cards (largely premium credit cards) supplied by some banks in Singapore allow you to earn air miles by converting your reward points earned on purchases applying the card. Generally, air miles cards come with a greater annual fee owing to their premium nature. As a consumer of a premium credit card, you can accumulate adequate air mile points to entirely offset your next holiday!