How to Compare, Apply for, & Use Your First Singapore Credit Card

Responsible credit card usage and spending habits enable you to get the most out of your purchases. Using a credit card allows you to gain from every purchase through benefits like points and cashbacks you wouldn’t otherwise get with transactions.

Proper and responsible use of credit cards (i.e., repaying credit card bills promptly) allows you to build your credit score. The better your score is, the easier it gets for you to apply for loans in the future.

Getting a credit card is an excellent choice for consumers who wish to earn rewards for their purchases. Some cards provide cashbacks, rewards points, or mileage points for everyday purchases, while others offer significant discounts and flexible payment options.

A credit card issuer will give you a maximum credit limit that you aren't allowed to spend beyond, i.e. a credit limit of $20,000. Now, this may seem exciting as your purchasing power has now increased by $20,000. However, observe responsible spending. Only spend what you can afford to pay in cash when the bill arrives.

Credit cards allow you to enjoy online or in-store shopping without the hassle of cash. You can purchase anything within your credit limit with just a swipe or tap of your credit card. You'll also receive monthly statements to help you keep track of your expenditure.

Are you a frequent traveler? Do you dine in often? Evaluating your lifestyle and understanding your spending habits will help you choose the right card that will best complement your needs.

A lot of credit cards offer special bonuses when a new user meets a specific requirement. For instance, receive 85,000 air miles when you spend $4,000 in the first 3 months. Consider this: can you comfortably spend this amount in this time frame? If not, you won’t be getting any of the bonus at all.

You can find credit cards that offer fixed percentages for their rewards program, and even offer higher percentages for specific categories like 5% cashback for gas transactions

There are credit cards that require an annual membership fee. Evaluate for yourself if it’s worth paying, considering that it probably comes with several perks you can maximize to offset the cost. It’s also good to note that you can contact your bank to have the annual fee waived. Your bank will check your credit card usage and payment history before waiving the fee. So, make it a habit to always pay in full and on time.

This refers to the interest rate you have to pay if you have balance outstanding. Some credit cards offer low promotional APR initially, which then eventually rises after you’ve had the card for a year or more. Thankfully, you won’t have to worry about APR if you’re punctual in fully paying your credit card every month. Always pay in full to avoid racking up interest. Merely paying the minimum amount and rolling over your balance to the next month effectively negates the rewards or cash back you've earned since you will be paying high-interest rates.

Visit your chosen bank’s website or head to the nearest branch near you to sign up. You can also check out if they have other channels for application, such as affiliate sites and aggregators like MoneySmart. Take note of the necessary documents and prepare them for submission.

Complete the questionnaire or application form to help the bank or service provider evaluate your financial standing and eligibility.

Submit the documents. Different banks may require different sets of required documents, but the basic requirements they usually ask to submit are as follows: A copy of your NRIC/FIN or Passport, Proof of income (e.g. latest computerised payslip, Income Tax Notice, CPF statements), and Proof of billing.

Prepare yourself for the verification process, which may be made via a phone call.

Wait for your application to be processed and approved. Once approved, your credit line will be opened, and a letter enclosed with your new credit card will be delivered.

Activate the credit card either through a verification SMS or phone call, or using your bank’s website, mobile app, or ATM.

This is the most accessible credit card payment mode, especially when you already have a savings account under the same bank. Online banking allows you to make same-day transactions, so you don’t have to worry about late charges when you make last-minute payments.

For those who often make the mistake of paying bills late, consider automating payments from your savings account using GIRO (General Interbank Recurring Order), an electronic payment service. You can set a minimum or full amount of GIRO deductions before the due date.

If your savings account is parked under a different bank from your credit card's, you can use AXS to pay your credit card bills. You can make payments at AXS stations, online through the AXS e-Station website, or using the AXS m-Station mobile app.