Credit cards come with a host of features and benefits – there is a good reason that credit cards are a popular event. If you want to apply for a credit card at any time.
Here are 10 things you definitely need to know before getting your first credit. These focuses will give you a superior comprehension of how Mastercards work and what you can anticipate from them.
But earlier I want to inform you that if you want to make a credit card online then you can generate it from ccgen. Apart from this, you can check every detail of any bank from JPMorgan Chase Routing Number 322271627.
Now let’s get started,
The Top 10 things to do before getting your first credit card are:
The annual fee on credit card
All credit card offered by banks, accompany a yearly charge. The annual fee varies from one card to another, even in the case of cards offered by the same bank. Generally, Premier cards that offer better benefits than normal cards come with a higher annual fee.
While the essential card in all likelihood accompanies a yearly charge, valuable cards additionally accompany a yearly expense by and large. Sometimes, the annual fee on a supplementary card is waived for the first year.
This is to keep the card more competitive and demanding. Some banks also waive annual fees on the primary card for the first year, or for the first two years or longer.
The annual rate of interest
All transactions that you use on your credit card attract a fixed rate of interest, known as the annual interest rate. The rate of interest is dependent on the bank offering the card and the type of card.
The interest rate for most credit cards is between Singapore 23% p.a. And 30% p.a. Banks allow for an interest-free period of about 21 days from the issuance of the statement and no interest is charged on repaying the amount within this interest-free window. If the amount is not paid before the end of the interest-free period, interest charges will apply accordingly.
Cash Advance Fee
Credit Card empowers clients to make crisis money withdrawals from ATMs. These cash advances carry a handling charge of about 5% –6% of the withdrawal amount, plus interest charges that fall in the range of 23% to 28%.
Interest on cash advances is calculated on a daily basis at a compounded rate until the amount is fully repaid. Cash advances are usually a risky event, mostly considering high-interest fees. So if you withdraw money using your credit card, it is advised that you pay the amount as soon as possible.
Minimum monthly payment
As a credit card customer, you must pay a minimum amount each month – or the entire amount if possible – 3% of the total monthly balance. If the late payment fee is to be avoided, the minimum payment needs to be made from the payment due date.
The minimum payment on your credit card’s monthly statement may include pending minimum payments from previous months, late payment fees, cash advance fees, and excessive fees if they apply.
Late payment fee
If a minimum amount is not paid by the payment due date, banks charge a fixed fee, commonly known as a late payment fee. Late payment fees for credit cards in Singapore can be anywhere in the range between S $ 40 and S $ 80, depending on the bank offering the card.
The over-limit fee is applicable and levied if it exceeds the credit limit allotted by the bank. The initial fee for a credit card in Singapore can be between S $ 40 and S $ 60.
Cashback and Reward Points
One aspect that makes credit cards a very exciting phenomenon is the rewards points/cashback that can be earned on purchases. Different cards are structured differently and allow you to earn cash back or reward points or both on your purchase.
Some cards allow you to earn reward points on groceries, while some others earn you cash back or reward points on air ticket booking, retail purchases, and more. Cashback and reward points are specific to certain credit cards and the extent of profit depends.
On the kind of card and the bank offering the specific card. Reward points earned on purchases can be converted from the card’s reward catalogue to exciting vouchers, discounts and attractive shopping/retail shopping / online deals.
Some credit cards allow you to transfer your entire credit card balance to that particular credit card account, allowing you to consolidate your debt. Balance transfer credit cards come with an interest-free period of 6 months to 1 year depending on the card you have applied for.
On account of equilibrium move cards, banks charge a handling expense and may likewise charge revenue. After the interest-free period, the normal interest charges on the card apply for transactions and cash advances.
Air mile program in Singapore
Some credit cards offered by some banks in Singapore allow you to earn air miles by converting your reward points earned on purchases using the card.
Typically, air miles cards come with high annual fees due to their premium nature. As a premium credit card customer, you can accumulate enough air miles points to fully offset your next holiday!
In short, your credit score is a projection of how well you have managed your debt in the past. It takes your payment pattern into account and records instances of late payments, credit overleaps, loan defaults, regular/timely payment history, etc., and gives banks an estimate of how you can handle a loan in the future. Can be so good. A good credit score is important for approving loan applications and credit card applications.
If you are considering applying for a credit card, then the above points will work for you. These aspects will give you a broader understanding of how credit cards work in Singapore, it gives you a better idea of what to expect. This will work even if you are not happy with your current card and want to switch to another credit card as well.