Best Credit Cards For Young Adults In Singapore (2024)
With younger Singaporeans taking up more debt these days and embracing the “Buy Now Pay Later” (BNPL) option whenever available, owning credit cards can be a tricky situation for the younger generation.
According to Aurobindo Ghosh, a Singapore Management University (SMU) assistant professor and the director of the Citi Foundation-SMU Financial Literacy Programme for Young Adults, younger Singaporeans have a higher risk of “getting into more debt than previous generations”, so this makes the decision of applying for the right credit cards even more important for the young adults in Singapore.
If you’re amongst the Gen Z and younger millennials here, or a parent/guardian who’s looking for the right credit card for your young adult, we’re here to help with some recommendations and tips.
Best Credit Cards Perks For Young Adults
| Credit Card | Benefits | Annual income requirement | Minimum spend requirement |
|---|---|---|---|
| HSBC Revolution Card |
|
| None |
| Standard Chartered Smart Credit Card |
|
| None |
| OCBC Frank Credit Card |
|
| S$800 per month |
| DBS Live Fresh Student Card |
|
| S$600 per month |
| UOB EVOL Card |
|
| S$600 per month |
| Citi SMRT Card |
|
| S$500 per month |
| KrisFlyer UOB Card |
|
| S$500 per year on Singapore Airlines flights to get bonus miles |
| Maybank Platinum Visa Card | Up to 3.33% cash rebates on all local and foreign spend |
| S$600 per month |
| Citi Rewards | 10X Points for every $1 spent on shopping and online purchases, including food delivery and groceries |
| S$500 per month |
*All information above is accurate at the time of writing as of 18 August 2023. All promotional details are subject to change as per the respective banks’ discretion.
Apply for the Best Credit Cards for Young Adults in Singapore (2024)
HSBC Revolution Credit Card
- on Online Spend and Contactless Payments
- S$1 = 10X Points
- on All Other Spend
- S$1 = 1X Point
- for every 10 Points
- Earn 4 Miles
Get a Hinomi Q1 Ergonomic Chair (worth S$499) or a Samsung 27-inch Smart Monitor M5 (worth S$432) or an Apple AirPods 3rd Gen + S$50 Cash (worth S$313.80) or S$150 Cash via PayNow when you apply and spend a min. of S$500 from Card Account Opening Date to the end of the following calendar month. T&Cs apply.
Standard Chartered Smart Credit Card
- Cashback from Netflix, Spotify, fast food joints and more. *T&Cs apply.
- 6%*
- Annual Fee
- S$0
- Minimum Spend
- S$0
Get a Sony LinkBuds S Earbuds (worth S$309) or a Lenovo Tab M10 Gen 3 (worth S$299.01) or up to S$230 Cash via PayNow when you apply and meet the relevant spend criteria! T&Cs apply.
OCBC Frank Card
- Cash Back
- Up to 10%
- Cash Back Cap per month
- S$100
- Min. Spend per month on Total Purchases
- S$800
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DBS Live Fresh Card
- on Shopping & Transport Spend
- Up to 6% Cashback
- Min. Spend
- S$800
- Cashback Cap
- Up to S$70
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Citibank SMRT Card
- Cash Back on Eligible Spend
- 5%
- Cash Back Cap per year
- S$600
- Min. Spend per month
- S$500
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KrisFlyer UOB Credit Card
- on Singapore Airlines, Scoot, KrisShop, Kris+ purchases
- S$1 = 3 Miles
- on dining, food delivery, online shopping, online travel, and transport spend
- S$1 = 3 Miles
- on all other spend
- S$1 = 1.2 Miles
[Amazing April Promotion | CASH BONUS]
Stand a chance to get an Apple 14-inch MacBook Pro (M3 Chip, 2023) (worth S$2,320.25) when you apply through MoneySmart! T&Cs apply.
PLUS get up to 31,000 miles plus first year annual fee waived for new-to-UOB credit card customers who successfully apply for an eligible KrisFlyer UOB Credit Card and spend a min. of S$2,000 within 60 days of the card approval date on their card. T&Cs apply.
Citi Rewards Card
- on Online & Shopping Purchases
- S$1= 10X Points
- for all other purchases
- S$1= 1X Point
- Rewards Conversion
- 10X Points = 4 Miles
[FASTER GIFT REDEMPTION | GIVEAWAY]
Get a Sony WH-1000XM5 Wireless Noise Cancelling Headphones (worth S$589) or an Apple iPad (9th Gen), 64GB (worth S$508.30) or S$420 Lendlease E-Vouchers (can be used at 313@somerset, Jem, Parkway Parade, PLQ) or S$300 Cash via PayNow, in as fast as 6 weeks from meeting the S$500 spend criteria!
PLUS stand a chance to get a Rolex Submariner 124060 (worth S$15,521) or an Apple iPhone 15 Pro, 128GB (worth S$1,664.25) or a Sony PlayStation®5 (SLIM) Digital Edition (worth S$669) when you apply through MoneySmart! T&Cs apply.
Is Owning One Or Multiple Credit Cards Better For Young Adults?
Here are some factors to consider when deciding whether to have one or multiple credit cards:
Financial responsibility
Having multiple credit cards can potentially lead to overspending and accumulating debt if not managed responsibly. It's important for young adults to assess their ability to handle credit responsibly before considering multiple cards.
It is also important to take into account how credit utilisation and other factors affect your credit score as having more than one credit card could complicate budgeting and tracking expenses. If you're organized and can manage multiple accounts effectively, it might not be an issue. To learn more about this, you can listen to one of CNA’s MoneyTalks episodes featuring tips from Abel Lee, our MoneySmart General Manager.
Credit score and history
By just managing one credit card will help you to focus solely on building a positive credit history and improving your credit score. On the other hand, having multiple cards may affect your credit score differently, depending on how high your spending is every month and how timely you pay off your bills or how many times you incur late payment fees. Having a longer credit history with a single credit card can be beneficial in the long run. If you keep switching or closing cards, it could potentially affect your credit history.
Rewards and benefits
As different credit cards offer different types of rewards such as cashback, air miles or other benefits on specific categories like dining, travel, or shopping, having multiple cards might help you maximise rewards in different areas.
For example, if you travel a lot for your studies or work abroad, a credit card that gives bonus air miles or frequent flyer air miles benefits for your air ticket purchases will help you save some money in the long run as you may be able to redeem those air miles for a free flight or flight booking discounts in the future.
Credit limit and utilisation ratio
Applying for multiple credit cards could potentially increase your total available credit limit. This can be advantageous in terms of credit utilisation ratio, but it also comes with the risk of overspending.
A lower credit utilization ratio is generally seen as favorable and can positively impact your credit score, and by having multiple credit cards which will most likely increase your total available credit, can lower your credit utilisation ratio (only if your spending remains the same).
For instance, if you have two credit cards with a total credit limit of $20,000 and you're using $2,000, your credit utilisation ratio is 10%. On the other hand, if you had only one card with a $10,000 limit and still used $2,000, your credit utilisation ratio would be 20%.
Tips On Choosing Best Credit Cards For Young Adults
From understanding your needs and financial goals, to maximising the rewards that you can get out of your credit card, it is safer to start with one credit card first to learn how to manage your finances effectively and avoid getting overwhelmed, but it still boils down to how well you can afford to pay off the bills while still maintaining a healthy financial status.
Evaluate your spending
Evaluating your spending habits when choosing a credit card is important because different credit cards offer various rewards, benefits, and features that cater to specific spending patterns. By understanding your spending habits and needs, you can select a credit card that maximises your rewards and benefits, ultimately saving you money.
Find out which rewards you value most
Credit cards often offer rewards in the form of cashback, points, or miles for specific spending categories. For example, some cards may offer higher rewards for dining, groceries, travel, or online shopping. By knowing where you spend the most, you can pick a card or multiple cards that reward you the most in those areas.
Note the fees and charges
Consider the annual fee associated with the credit card you’re considering and make sure that the rewards you'll receive outweigh the cost of the annual fee. Some cards offer a waiver of the annual fee, which helps you make some savings. If you don't spend much in the categories that the card rewards, it might not be worth paying the annual fee.
Compare and research
After you’ve determined what kind of reward currency you value most and can get most out of your spending habits, you’ll need to compare between the cards which are available in that particular category or categories i.e. cashback, air miles, petrol discounts, dining privileges, etc. You may use a comparison tool such as MoneySmart’s Best Credit Cards page to find the card that suits your spending habits the most.
Some credit cards impose spending caps or minimum requirements to earn rewards. Try to estimate whether you're likely to reach these thresholds based on your current spending habits. If your expenses are higher, you might prefer a card or multiple cards with no caps or higher limits.
About the Author
Frequently Asked Questions
Is having a credit card or none better for young adults?
- This depends on your spending habits locally and/or abroad as a fresh graduate. If you are going for rewards points to redeem for attractive perks such as air miles for your next airfare or dining and shopping vouchers or other tech gadgets, then using credit cards which are linked to reward programmes would be better. On the other hand, if you just want to withdraw amounts of cash, a savings account with a debit card may suffice as it relieves you of the hassle of carrying large amounts of cash with you as you travel.
Will I be able to use most credit cards internationally when I travel?
- Yes and no. This depends on which credit card networks your credit cards are tagged to i.e. Visa, MasterCard, American Express, UnionPay, etc., as some are accepted globally while others are only regionally accepted. For cards which are tagged on Visa, Mastercard and American Express, and Discover networks, they are widely accepted globally. Certain networks like UnionPay have an extensive presence, but they are accepted by fewer merchants around the world.
How can I check credit card foreign exchange rate and currency transaction charges?
- You’ll be able to check these charges in the terms and conditions of your credit card documents or your credit card bills. As the majority of the banks in Singapore do not really state the credit card foreign exchange rates and currency transaction charges upfront, you’ll have to take extra effort to find out these aspects. Many of the Help Centre and FAQs sections of the banks’ websites do provide information on these charges as well.
Is there a credit card with no foreign transaction fee?
- No, currently no credit cards in singapore offer the benefit of no foreign transaction fee charges. However, there are some credit cards which offer waivers of your foreign transaction fees, but you’ll have to call in or email or log into your account with your credit card issuing bank to request for it.
What if I can’t make my repayments on time?
- Most credit cards will charge a late payment charge and additional interest will be calculated on a daily basis at the most updated EIR determined by your credit card issuing bank at the point of your late payment.