What's the advantage of getting a credit card? Fresh grad who is new to personal finance here?

Hi guys. I'm a fresh grad, drawing less than $2000 take-home salary each month and spend $900-$1000 a month (including giving my family allowance).

Frankly I've never considered getting a credit card, but am now thinking of getting a DBS/POSB one to hit the DBS Multiplier criteria. 1) Saw that the annual fee is ~$192/year which is quite a big sum for me. Why do everyone get credit cards then? 2) Given my low salary, are there any DBS / POSB cards you know that may suit me?

Discussion (16)

What are your thoughts?

Learn how to style your text

Zhen

28 Oct 2019

Hi, may I know which card did you apply for in the end?

Save

Gerard Ong

07 Jun 2019

Tax Manager at Ernst & Young

Apart from cashback and/ or miles, another benefit is that you only have to pay for your purchases about 1+ month after the actual expenditure. This means that the money that would have been spent gets to sit in your bank account for that one extra month. And earn interest! For free!

Credit cards usually have their first 1-2 years of annual fees automatically waived. After which, you can call in for case-by-case waiver. As long as you can pay your credit card bills on time, there are no costs to using one, but plenty of benefits.

Save

View 4 replies

Gabriel Tham

07 Jun 2019

Tag Team Member at Kenichi Tag Team

Credit card got many rewards and rebates. Annual fee is easily waived for POSB DBS by just calling the hotline.

Low salary can get credit card, they will just lower your credit limit. Just make sure to always pay your bills on time.

Save

View 3 replies

Elsa Goh

07 Jun 2019

Just get dbs debit. They are currently having 5% cashback on contactless transactions with minimum spend of $400. Dbs's only credit card that is similar is dbs live fresh, and that one has a lot of odd criteria and caps.

Save