Credit cards come with a host of features and benefits – a fantastic purpose why credit cards are a well known phenomenon. If you are searching to apply for a credit card anytime soon, right here are ten points you absolutely will need to know. These points will give you a better understanding of how credit cards perform and what you can anticipate from them.

Annual fees on credit cards

All credit cards supplied by banks (at least a major percentage of them), come with an annual charge. The annual charge mostly varies from one card to a further, even in the case of cards supplied by the identical bank. Commonly, Premier cards that offer you superior benefits than standard cards come with a higher annual charge.

When the Main card just about surely comes with an annual fee, supplementary cards also come with an annual charge in most circumstances. From time to time, the annual fee on the supplementary card is waived for the 1st year or so – this is to keep the card much more competitive and in-demand. Certain banks waive the annual charge on the principal card as nicely – for the initially year, or 1st two years, or longer.

Annual rate of interest

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

Banks let for an interest free of charge period of about 21 days from the release of the statement (once more, this depends on the bank and the variety of card) and never charge an interest if the quantity is repaid in full within this interest absolutely free window. If the amount isn’t paid before the finish of the interest absolutely free period, interest charges will accordingly hold applicable.

Money advance charges

Credit cards allow buyers to make emergency money withdrawals from ATMs. These cash advances carry a handling charge of about 5%-6% of the withdrawn amount, besides interest charges that fall in the range involving 23% and 28% p.a. Interest on money advances is computed on a everyday basis at a compounding price till the quantity is repaid in complete. Cash advances are usually a risky phenomenon, mainly considering the higher interest charges. So if you withdraw revenue using your credit card, it is advisable that you repay the amount in complete at the earliest.

Minimum month-to-month payments

As a credit card client, you are needed to pay a minimum quantity every month – or the whole quantity if that is achievable – amounting to 3% of the total month-to-month outstanding balance. Minimum payments need 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 involve pending minimum payments from preceding months, late payment charges, cash advance charges, and overlimit charges, if they hold applicable.

Late payment charges

If the minimum quantity isn’t paid by the payment due date, banks levy a specific charge, commonly referred to as the late payment charge. The late payment charge for credit cards in Singapore can be anywhere in the range involving S$40 and S$80, based on the bank supplying the card.

Overlimit charges

Overlimit charges hold applicable and are levied by the bank if the allocated credit limit is exceeded. Overlimit fees can variety in between S$40 and S$60 for credit cards in Singapore.

Cashbacks and reward points

An aspect that makes credit-cards a pretty fascinating phenomenon is the reward points/cashbacks that can be earned on purchases. Various cards are structured differently and let you to earn either cashbacks or reward points or both, on your purchases. Some cards permit you to earn reward points on groceries, while some other let you earn cashbacks or reward points on air ticket bookings, retail purchases, and so forth. Cashbacks and reward points are characteristics that are specific to specific credit cards and the extent of benefits depends on the type of card and the bank providing the specific card. Reward points earned on purchases can be converted into fascinating vouchers, discounts and desirable purchasing/retail obtain/on the web deals from the card’s rewards catalogue.

Balance transfers

Certain credit cards allow you to transfer your complete credit card balance to that distinct credit card account, enabling you to consolidate your debt. Balance transfer credit cards come with an interest cost-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 fee and may also charge an interest (unlikely in a majority of situations). Immediately after the interest free period (6 months – 1 year depending on the card), typical interest charges on the card are applicable for transactions and money advances.

Air miles programmes in Singapore

Particular credit cards (largely premium credit cards) provided by some banks in Singapore let you to earn air miles by converting your reward points earned on purchases employing the card. Typically, air miles cards come with a greater annual charge owing to their premium nature. As a consumer of a premium credit card, you can accumulate enough air mile points to absolutely offset your subsequent vacation!