Asked by Anonymous
Asked on 15 Oct 2018
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?
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.
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16 Oct 2018
Hi, may I know which card did you apply for in the end?
Honestly, you may not qualify for a credit card at the moment based on your current salary range. Minimum to qualify is S$30,000 annual income, or S$2.5k a month gross, or S$2k take home, which is above the amount you mentioned. No harm trying to apply for one though.
For annual fees, these can typically be waived, and I do that for all my cards. Unless you took up DBS Altitude card, which gives you 10k miles if you pay the annual membership fee. I do the same for my Citibank Premiermiles.
As per the type of card that may be suitable for you, it'll depend on what you are using the card to accumulate for - miles or cashback. DBS Altitude for miles, and perhaps POSB Everyday card if you prefer cashback. You can put your telco and utility bills on this card, and it offers some good cashback at Watsons and Sheng Siong.
notes on getting a cc
only buy what you can afford
pay off your bills monthly
why get one
higher interest rates on Dbs multiplier
you need one for hotel check- in
other perks such as lounge access
cc perks such as holiday spens promos
Credit cards are useful for getting cashback, rebates, deals, rewards etc., depending on which credit card you're using. However, it is truly useful only if you can control your spending and pay your bills on time. Otherwise, you might end up with a credit card debt which has high interest and late payment fees. Most credit cards require a minimum annual income of $30,000. So maybe you can consider the CIMB AWSM Credit Card and change to another card as you progress in your career in the future.
It has no annual fees and gives you 1% cashback on Dining & Entertainment, Telecommunications (Starhub/M1/Singtel/Circles.Life) and Online Shopping. If you sign up before 31 December, you can get a free Wave House Sentosa 1 hour FlowRider (worth S$40) and $30 credit if you spend at least $100 within 2 months from the date of your card activation. Check out the CIMB Awesome (AWSM) Credit Card here - https://www.cimbbank.com.sg/en/personal/products/cards/credit-cards/cimb-awsm-card.html
In any case, I believe that it's possible to ask for waiver of the annual fees
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.
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16 Oct 2018
Spending cash has zero benefits unless the sales has additional tax on non cash payments.
E.g.: sim lim Square.
However most cash else modes have benefits including credit cards.
POSB everyday has simple cash back rebates which you can off set credit card bills.
The amount may be tiny but it is still a flat discount.
Food for thought if you now need to spend more.
This card is just an example, you have to do your own research.
Tldr: cash has zero benefits, usually.
Non cash usually have benefits.
Just do not get a benefit that does not suit you, e.g.: miles but you do not fly.
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.
16 Oct 2018