Best Credit Cards in Singapore 2023

 Best Credit Cards in Singapore 2023

How do Credit Cards Work?

Credit cards enable users to make purchases and 'borrow' up to a credit limit - so technically the user is spending using the bank or credit card providers' funds of which the amount has to be repaid by the user within the allotted time period or a user will risk incurring late fees and charges. So responsible use and due diligence are required in order to avoid incurring debts.

Compare and Find the Best Credit Cards for You

Find the best credit card in Singapore here. Picking the most suitable credit card for you might seem a daunting task with the many different providers providing a wide array of types of credit cards from cashback cards, rewards cards, air miles cards, and everything in between. Find out what some of the most popular types of credit cards have to offer and how they might be suitable for you. 

Earn Air Miles with Credit Cards

Air miles credit cards offer an excellent way to earn rewards and save money on flights. The best air miles credit cards offer cardholders a high miles per dollar spend ratio (mpd), generous reward programs, and travel perks which include complimentary travel insurance and lounge access to make your travels a much more convenient and cost-saving affair. So, if you are someone who travels quite regularly, an air miles card will probably provide you with the most value due to the abundance of travel-related perks and benefits available for you to enjoy - just ensure you take note of the terms and conditions, such as blackout dates, interest rates and fees.

Enjoy rebates with Cashback Credit Cards

Cashback credit cards offer rewards in the form of cash rebates to the cardholders upon making a valid transaction. To find the cashback credit card that best suits your lifestyle and spending habit, ensures that you do research on the different types of restrictions for earning cash rebates so you can get the most value out of the perks and benefits. Things to look at include, the different types of categories you transact with on your credit cards, the different caps on cashback earned, and any minimum spend amount.

Accumulate Points with Rewards Credit Cards

Rewards credit cards allow users to earn points for every dollar spent which can be redeemed for perks and benefits such as cashback, merchandise or to help you cover of part of your travel expense. These usually come with certain restrictions so ensure you are fully aware of them so you can redeem your rewards without any issues or disappointment.

Choosing the Most Suitable Credit Card for Your Lifestyle

Here are some of the things to consider when choosing the most suitable credit card for you!

Identifying a credit card most suitable for your spending habits

When choosing a credit card it is important to take into account the minimum spending requirements needed to be eligible for certain rewards or benefits so you won't be required to change your lifestyle or spending habits. Some cards may have minimum spending requirements which you might not be able to meet hence disqualifying you from that specific benefit. Conversely, if you regularly spend an amount that is significantly higher than the minimum requirement, you might lose out on the benefits you can earn due to caps on benefits, air miles, and cashback earned - if this is the case then you might want to find a card with higher caps on rewards to ensure that you benefit with every single dollar you spend.

You can also read the following articles on the different types of credit cards for different spending types and how to best utilize them:

• Find The Best Cashback Credit Card
• Which Mastercard Credit Card Is The Best?
• Find Out Which Is The Best Credit Cards To Pay Your Utilities And Bills
• Look For The Best Credit Cards That Can Be Used As Your Ezlink Card For Public Transport
• Find The Best Credit Cards For Booking Flight Tickets And Hotels With
• The Best Credit Cards For Insurance Premiums
• Find The Best Credit Cards For Groceries
• Find The Best Credit Cards For Online Shopping Payments
• The Best Credit Cards With No Minimum Spend
• Best Credit Cards For Fuel Promotions
• Find Out How To Shop On Taobao With Your Credit Card
• Find The Best Credit Card Signup Promotions
• Read More The Best Credit Cards For Overseas use
• Best Credit Card Promotions In Singapore

Finding out how to maximize the credit card rewards and benefits for your lifestyle

In order to maximize the rewards you earn, choose a credit card that aligns with your spending habits so you get to enjoy rewards or benefits that are relevant to you without having to make adjustments to your lifestyle. If you are a frequent traveler, then perhaps you should look for a card with amazing travel-related rewards and benefits along with a high miles-per-dollar spend rate or if you regularly drive your vehicle to and fro from work then perhaps a card with petrol-related offers will bring you more value. Additionally, look for opportunities to earn extra rewards by combining credit card benefits with other loyalty programs or promotions. For example, some credit cards offer extra rewards for using their card with certain partners or for signing up for a new service. By being strategic and taking advantage of credit card rewards and benefits that align with your lifestyle, you can maximize your savings and get the most out of your credit card.

Understand the credit card terms and conditions

It is important to review and understand the terms and conditions of a credit card when choosing the most suitable cards for your needs. Look at the interest rates, fees, rewards programs, and minimum spend requirements of each card to check if it aligns with your lifestyle and budget. On top of that, look for any limitations and restrictions such as expiry dates, fees, penalties, and exclusions.

Besides knowing the terms and conditions, you can also find out about credit cards through reviews. If you’re looking for product specifications on credit card features, perks, and benefits, here are some of the more popular credit cards for you to familiarize yourself with before applying for one.

• Find Out More About The UOB One Card
• Find Out More About The POSB Everyday Card
• Find Out More About The UOB Absolute Cashback Card
• Find Out More About The UOB Lady's Card
• Find Out More About The UOB 365 Card
• Find Out More About The Citi Cash Back Card
• Find Out More About The Citi Prestige Card
• Find Out More About The HSBC Advance Credit Card
• Find Out More About The DBS Esso Card
• Find Out More About The DBS Live Fresh Cashback Card
• Find Out More About The DBS Woman's Card
• Find Out More About The UOB EVOL Card
• How To Enjoy Rewards With Your Credit Card When Using Buy Now Pay Later Services
• Find The Best American Express Credit Cards
• Read More About The Citi Lazada Card
• Find Out More About The GrabPay Mastercard

Seedly’s Credit Card Guides

Still have questions about credit cards? Apart from user reviews on the plethora of credit cards offered, check out these ultimate guides about all things credit cards! No matter your spending habits, these guides are an excellent segue into the world of credit cards. 

• Here’s Why You Should Own at Least 1 Credit Card in Singapore
• Introduction to Cashback Credit Cards: What You Need to Know And Which is Best?
• Best Cashback Credit Card 2022
• Best Cashback Credit Cards in Singapore With No Minimum Spend
• How to Get Credit Card Rewards for Paying Your Insurance, Mortage, Taxes, And More
• Best Cashback Credit Cards in Singapore With No Minimum Spend
• Guide to Visa Credit Card Surcharge Fee
• Ultimate AMEX Credit Card Comparison: Which Should You Own And Hacks to Maximise Rewards
• Best Credit Card for Students
• The Ultimate Cheatsheet: Best Credit Cards for Working Adults
• Best Grocery Credit Cards in Singapore
• Best Credit Cards for MRT/Bus Rides

Other Fees to Consider When Choosing a Credit Card

Apart from the annual fees, there are other fees you need to be aware of which include credit card transaction fees, cash advance fees, and balance transfer fees in order to avoid unwanted or unforeseen charges that might affect your personal finances.

Credit Card Transaction Fees

Credit card transaction fees are charges that merchants pay for accepting credit card payments from customers. These charges vary depending on the credit cards used and the merchants where the transactions happen. Most cards in Singapore typically charge around 3% for overseas transactions and these charges are then passed on to the customers by the merchants while some prefer to absorb the charges.

Cash Advance Fees

Cash advance fees are charges handed out by credit card providers when a cardholder withdraws cash from an ATM or a bank using a credit card. The fees are typically a percentage of the cash advance amount which ranges from 5% to 8%, plus interest charges. It is recommended that Cash Advances be used only as a last resort due to the high cost of the fees it incurs.

Balance Transfer Fees

Balance transfer fees are one-time charges that are incurred when a cardholder transfers outstanding balances from one credit card to another. This fee is typically a percentage ranging from 1% to 5% of the total amount transferred. Whilst balance transfer can be a useful way to consolidate your debts and to take advantage of lower interest rates, a cardholder has to understand and take into consideration the fees that come along with it.

How to Apply for a Credit Card

Step 1: Choose to apply for your credit card online or in-person

Choose whether you want to apply for a credit card online or in person. Applying online is a much more convenient process but any queries you might have with regards to the application might not be answered immediately - and can be dependent on the availability of content on the providers' website or on the efficiency of the providers' customer service. However, applying it in person gives you the advantage of being able to speak to a representative to iron out any issues and you might even get your card immediately upon application.

Step 2: Collect and prepare the required documents

You will have to prepare all the necessary documents for the application of credit cards. These documents include:

• Your proof of identity
• Proof of income
• For non-Singaporeans/PR, you will require to prepare your relevant work passes

Do prepare all these beforehand and ensure the accuracy of said documents for a smooth application.

Step 3: Completing the application form

Fill up the credit card application form as accurately as possible or you might risk getting your application delayed, or even worse, rejected. This is especially true for your personal, employment, and income information. This is also the time for you to review and understand the terms and conditions of the credit card you are applying for.

Step 4: Wait for your confirmation and approval of your application

After your application has been submitted, you now have to wait for confirmation and approval which can take a few days. You should refrain from submitting multiple applications as you risk affecting your credit score. Upon confirmation and approval, you will receive a notification after which your credit card will be mailed to you. All you need to do now is to activate the credit card and you are ready to use it.

Understanding the Minimum Payment for Credit Cards

Being aware of the minimum payments for credit cards will help you avoid unnecessary penalties and the accumulation of debts.

Is it recommended to only pay the minimum balance?

It is not recommended for a cardholder to only pay the minimum balance on a credit card as it might result in high-interest charges and long-term debt accumulation making it even more difficult to settle the balance in full. It is best practice to pay either the full amount or as much as your finances allow it so the debt won't snowball.

Can paying only the minimum balance affect your credit score?

Consistently paying only the minimum balance can harm your credit score as it can indicate a higher risk of default and increase your credit utilization ratio both of which negatively affect your credit score. So whenever possible, pay your credit card bills in full or pay as much as you possibly can.

How to increase our credit card limit

You can request a credit card limit if you are frequently spending close to your or up to your limit but it is subject to factors such as your credit history and your payment behaviour. Here are the steps on how to increase your credit card limit.

Step 1: Find out your current credit card limit

In order to increase your credit card limit, first you have to find out your current credit card limit. You can do that by checking your latest credit card statement, logging in to your online banking account, or contacting your credit card provider's customer service.

Step 2:Review your credit score and payment history

Next, you need to do is to review your credit score and payment history. You can do this by obtaining a free credit report from the Credit Bureau Singapore website. If your credit card provider sees that you have a good credit score it means you have a good track record of paying your bills on time and you are more likely to be granted your request for a credit limit increase.

Step 3: Prepare all the necessary documents

To apply for a credit score, you will need to present a few documents such as your identification, proof of income, and employment details. Do check with your credit card provider for the exact list of documents you require to avoid any unnecessary delays.

Step 4: Await a response from the credit card provider

After you have completed the application for a credit card limit increase, all of you have to do next is to await a response from the credit card providers. This process will usually take a few days to a week to complete. If everything is in order, then you should be able to start to enjoy your new credit limit - but of course, please do so responsibly and spend within your means to avoid falling into debt traps.

Difference Between Visa, Mastercard and Amex Credit Cards

Visa, Mastercard, and American Express (Amex) are the three major credit card networks in Singapore, with each providing certain differences in the services and offers they provide as well as in the credit cards they issue. Here are some of the differences that are worth noting:

Acceptance

Visa and Mastercard are generally more widely accepted by merchants compared to Amex credit cards both in Singapore and abroad. What this means is Amex cardholders will not have the same degree of accessibility when it comes to making payments with their credit cards.

Rewards and Perks

Each network offers different rewards programs, perks, and benefits. In general, out of the three cards, American Express credit cards tend to offer more exclusive deals whilst Visa and Mastercard tend to offer rewards programs that are more widely accessible.

Fees

The fees associated with the credit cards of each network may vary so be sure to do a review of the terms and conditions of each card before applying in order to access the suitability of a network's card with regard to your lifestyle and spending habits.

Frequently Asked Questions about Credit Cards

Differences Between Debit Cards and Credit Cards

A credit card allows you to borrow money up to a credit limit while a debit card is linked directly to your bank account. What this means is when you use a credit card you are essentially lending money from the bank to pay for your transactions or in other words, you are spending the bank's money which you will have to settle after a set period of time whilst with a debit card the funds are from your bank account meaning the money is yours. Credit cards, however, provide cardholders with much better offers and benefit in order to encourage usage of the cards.

Differences Between Debit Cards and Credit Cards

A credit card allows you to borrow money up to a credit limit while a debit card is linked directly to your bank account. What this means is when you use a credit card you are essentially lending money from the bank to pay for your transactions or in other words, you are spending the bank's money which you will have to settle after a set period of time whilst with a debit card the funds are from your bank account meaning the money is yours. Credit cards, however, provide cardholders with much better offers and benefit in order to encourage usage of the cards.

Tips for Preventing Credit Card Fraud

To prevent credit card fraud, a cardholder should regularly monitor your credit card account statement and carry out measures to avoid the loss of your card, and be aware of any credit card fraud or scams going on out there. It is generally a good idea to keep your personal data as confidential as possible. However, if you suspect that you are a victim of credit card fraud, do not hesitate to call your credit card provider for assistance and for a swift resolution.

How to Manage Your Credit Card Statement

To manage your credit card statement, you should regularly review it and track your spending. If you spot any errors, be sure to contact the credit card provider's customer service hotline to dispute those charges. Regular tracking also keeps you up-to-date on your financial situation so you will be better prepared to pay your credit card bills on time