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.

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.