Credit cards have a lot of benefits and features – a reason why credit cards are a phenomenon that is popular. If you are looking to apply for a credit card anytime soon, here are. These tips will give you a better understanding of how credit cards work and what you can expect from them.
Annual charges on credit cards
All credit cards offered by banks at least a significant proportion of them, include an annual fee. The fee changes from one card to another in the event of cards offered by the bank. Premier cards that provide benefits than cards have a higher fee.
Annual rate of interest
All transactions you make using your credit card attract a specific rate of interest called the yearly percentage rate of interest APR. The rate of interest is determined by the bank that is supplying the card and the sort of card. The rate of interest for most credit cards is Singapore is between 23 percent p.a.
Cash advance fees
Credit cards allow customers to create emergency cash withdrawals. These cash advances carry a handling charge of approximately 5%-6% of the withdrawn amount, besides interest rates which fall in the range between 23% and 28% p.a.
Minimum monthly payments
As a credit card customer, you are expected to pay a minimum sum each month – or the amount if that is possible – amounting to 3 percent of the outstanding balance.
Late payment fees
If the amount is not covered by the payment due date, a fee, commonly referred to be levied by banks.
Over limit fees
Fees hold applicable and are levied by the lender if the credit limit is exceeded. Fees can vary between s$ 60 and s$ 40 for singapore credit card.
Cash backs and reward points
An aspect which makes credit-cards a phenomenon that is exciting is. Various cards have been structured and make it possible for you to earn reward points or cash backs or both.
Certain credit cards enable you to move your credit card balance to that credit card account. Balance transfer credit cards arrive with an interest free period of 6 months – 1 year, depending on the card you have applied for.
Air miles programmers in Singapore
Certain credit cards mainly premium credit cards offered by some banks in Singapore let you earn air miles by converting your reward points earned on purchases using the card.
Your credit rating is a projection of how well you have managed your debt. It takes documents and your payment patterns instances of late payments, credit over limits history of obligations, etc. A high credit score is critical to getting loan software and credit card applications accepted.