No minimum pay needed for new credit card
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July 20, 2007
I am totally against this when finally the benificaries are the banks with their interest collections and fees collections from both the users and retailers. I prefer that my children learn to spend what they "have" and not what they "will have".
Let students have $500 credit card?
YES
'WHY not?' This was the response of eight parents out of 40 polled, who said that in an increasingly cashless society, teenagers can be trained to use credit responsibly, starting with a credit card with a $500 limit.
After all, $500 is 'a small sum', said Mr Don Tan, 53, a businessman who gives his two teenage children $700 each in pocket money every month.
The credit card would be useful in case of an emergency or when the children are travelling overseas, said Ms Pauline Goh, a secretary in her 50s.
The new card appealed to 10 students who liked the convenience of being able to buy bigger-ticket items without having to lug wads of cash or waiting for their next allowance. They also expected the card to offer privileges or discounts at restaurants or shopping malls, which debit cards lack.
'If there were discounts at, say, HMV or McDonald's for the $500 credit card, that could be an incentive for me to apply for one,' said Ms Cherry Tan, 19.
'For every student there who defaults on a credit card payment, there are many more who are responsible borrowers.'
UNDERGRAD EDWIN LEE, on the no-minimum-income card situation in the US
'These kids would have a higher risk of default since they are clearly borrowing beyond their means.'
ENGINEER RICHARD TEO, who felt the $500 card could attract those who may not have enough in their savings accounts
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Two sides of the issue
The practice of offering credit cards with no minimum income requirement is already prevalent in the United States, said Mr Edwin Lee, 24, who is studying there. 'For every student there who defaults on a credit card payment, there are many more who are responsible borrowers,' he said.
Indeed, a Credit Bureau of Singapore study showed that the proportion of credit card holders here aged between 21 and 29 who missed at least one payment last year was 6.6 per cent, lower than the overall national average of 8.14 per cent.
Bankers also said that holders of the $500 card would have their spending monitored closely, and their cards would be blocked instantly if they did not pay up the minimum balance on time.
NO
GETTING a credit card with a $500 limit was a definite 'no go' for Glen Chew, 24, a student at the Singapore Management University (SMU).
'I prefer to spend within my means, especially since my parents are not well off,' he said. 'But I may be one of the minority among youths who think credit cards - even if they are capped with a $500 limit - encourage overspending habits.'
Mr Chew would have been surprised to find that he was one of 25 young people who said they were not keen on plastic. Many felt their needs were being met by debit or supplementary cards.
Parents also preferred their kids to use such cards as their spending could be tracked easily.
The $500 credit card, by contrast, may encourage 'irresponsible spending', said accountant Tan Lee Wen, 46.
Another parent, engineer Richard Teo, 48, felt the $500 card could attract mainly those who do not have a supplementary card and also may not have enough in their savings accounts.
'These kids would have a higher risk of default since they are clearly borrowing beyond their means,' he said.
Parents also voiced concerns that their children may get a black mark on their credit history if they were careless. IT executive Angie Fang, 51, said: 'My son can be quite a scatterbrain. What if he loses the card and forgets to cancel it for months, only to find a big bill?'
Mr Mohamed Salim, a financial adviser at First Principle Advisory and a father of three children, said young people need to be trained to spend within limits and 'to earn the money they spend'. -
Tell me again why we are telling parents how to handle their own kids?
Whatever happens between the parents and the kids is their own business. Why the heck are we dictating what is right and not? -
the economy is stagnant..its one way of making people to spend..
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This is entirely stupid
I've seen tons of teens not being able to pay their handphone bills on time and now the bank wants to issue credit card and claiming it's to encourage fiancially wise savings? -
Why do they not make it for 21 and above?
Since 21 is the age of 'majority' here and contracts are henceforth legally binding.
21 is the magical age when we can start to do everything we want, as long as we accept the responsibilities with it.
Kids nowadays are different from back then. I think they're less prudent, and seeing that kid who wants to buy a $399 shirt.. it really makes me wonder if its such a good idea after all.
Not to mention that the rates are higher as compared to other credit cards..
On the other hand, its not so bad for people who just starting working, and want a credit card for the many purposes it offers, like buying movie tickets online, ebay items, books, etc.
I'm thinking of getting it, especially since there's a citibank 'payment booth' on every MRT station, and because i know i can control how much i spend.
The kids though, should put more thought onto this.. -
I hear people say 500 only mah...not alot of money..
But 500 x 10 banks = 5000 already... -
Lj la, most studetns avergale allowances between 200-300.
500 credit limit? the interest will snowball andthe parents will have to step in to pay for them. -
Dont see the point of such a card when debit cards are available.
I think this card just want to make money from young adults and teenagers who cant make their payment. -
Evil Evil Evil.....
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Credit card companies should set minimum sum limit. this is to prevent youths (maybe school going kids) who are not earning an income
to apply for the cards. credit cards allow for buy now and pay later and youths get carried away with buying without realising the amount
of $$ they have chalked up in their cards.
In my humble opinion, they should set a min income for applicants. -
ahhhhhh
i wanna get 1 also~~~~~
but i no job
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this one dun need job what.Originally posted by shinta:ahhhhhh
i wanna get 1 also~~~~~
but i no job
but i think you're overage.
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what?Originally posted by stellazio:this one dun need job what.
but i think you're overage.
above 18 nia what hw come citibank no email me to tell me about clear card?
maybe they think i got debit card dun need credit card liao
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i think there's pro n cons to this CC.
we have to see it both sides lor..
of cos it will not be good for students to apply it now n sign and let their parents pay for it while their kids happily spend future money
but think abt those working young adults who don't earn 30k annually... it will be a good card for them...
however, i still don't encourage students applying for this UNLESS THEY EARN THEMSELVES!!!! -
Parents are saving now for their retirement, paying off mortgage for the house. Businessmen is now targetting the young people. This is a commerical tactic to encourage the teenagers to spend more. Consumerism, spending future money, the ugly side of capitalism, but the bank would not wait for the future, it will ended up parents paying the money.
Has the government said anything? no. Do we need the government to approve? technically no.
But IF, the parents have no control over their children, the children have no control over how they spend money, then the family is dead. And IF we need MAS to come in to PREVENT the families from getting into trouble, then we are just giving the anti PAP more reasons to start new threads to tekan PAP.
How family spend their money is really none of government's business. But broken families, troubled families can become social problem. Many parents do not or cannot handle their children, they let the government do the job. Many children ignore their aged parents, they want the government to handle aging populations. What should the government do?
I ask this: In Singapore, how responsible are the parents in bringing up their children, and do the children feel accountable for their actions? in this case, spending money. Are you the parents or the children? dont tell me about PAP.
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Actually it can work both ways. But then again its highly unlikely, as there is already a growing trend of Working Adults being in severe credit debt. What about teenagers? With good parental guidance, they might learn to handle money better, but in my opinion, this is the exception, not the norm.
Didn't govt set up the "Credit Bureau" due to the rising number of credit card debts in Singapore among working adults?? Now giving credit to kids.... disaster in the brewing. Maybe its due to the dip in the retail sector. Money not moving.
Basically I stop shopping already, unless I really need shopping. My own part to counter the GST. Like not eating sharks fin, I do my part, however small.
Due the rising costs everywhere, there are many people (me included) who have the mindset.
"In the war of cash retention between retailers and consumers. Your insecurities and desires fall prey. If you fall for an advertisement or good marketing, you lose the battle."
I tend to use this line, and I work in an advertising/media agency, always kenna frown upon. -
I dont really agree.Originally posted by aHGer^83:i think there's pro n cons to this CC.
we have to see it both sides lor..
of cos it will not be good for students to apply it now n sign and let their parents pay for it while their kids happily spend future money
but think abt those working young adults who don't earn 30k annually... it will be a good card for them...
however, i still don't encourage students applying for this UNLESS THEY EARN THEMSELVES!!!!
Debit cards are good enough to cover the needs for these group of young adults.
All the banks can do its to attach limited credit facility ($500-$1000) to these debit cards should the card holders need cash for emergencies (ie, business travels, etc) -
hanor hanorOriginally posted by Mid9Sun:I dont really agree.
Debit cards are good enough to cover the for these group of young adults
All the banks can do its to attach limited credit facility ($500-$1000) to these debit cards should the card holders needs cash for emergencies (ie, business travels, etc)
den i dun need to bring so many cards
not that i have many cards -
yeah loh ..the banks really overkill...I applied for a card recent for their priority taxi booking facility and they sent me 3 cards instead....Originally posted by shinta:hanor hanor
den i dun need to bring so many cards
not that i have many cards
wtf -
Well, I think the govt should not interfere. We should have a laissez-faire economy, with minimal govt intervention.(Yes I know, we are for from it at the moment)
Then again, parents should be prudent about this. And also, if such a service was frowned upon, then there would not be profitable for the banks to market such a product.
Its sad that alot of people in Singapore fail to see beyond their own comfort zones, and this fail to grasp the POWER OF THE CONSUMER. The Boston Tea Party should be taught in History books in schools, IMO. The power of the united consumer can bring down any multinational corporation to its knees, a very valuable lesson learnt from the Boston tea party. -
Originally posted by Jontst78:
besides the parents and the bank, the youngsters have the responsibility too, in fact, theirs the largest share of the responsibilities. And there are many of such youngsters and kids in this forum.
Well, I think the govt should not interfere. We should have a laissez-faire economy, with minimal govt intervention.(Yes I know, we are for from it at the moment)
Then again, parents should be prudent about this. And also, if such a service was frowned upon, then there would not be profitable for the banks to market such a product.
Its sad that alot of people in Singapore fail to see beyond their own comfort zones, and this fail to grasp the [b]POWER OF THE CONSUMER. The Boston Tea Party should be taught in History books in schools, IMO. The power of the united consumer can bring down any multinational corporation to its knees, a very valuable lesson learnt from the Boston tea party.[/b] 
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er... this is a credit card lei...Originally posted by Mid9Sun:I dont really agree.
Debit cards are good enough to cover the needs for these group of young adults.
All the banks can do its to attach limited credit facility ($500-$1000) to these debit cards should the card holders need cash for emergencies (ie, business travels, etc)
debit card is good enuff for students tho... -
Any many of them are not exactly smart or mature as I observedOriginally posted by sgdiehard:And there are many of such youngsters and kids in this forum. -
Whats big deal abt credit card leh???Originally posted by aHGer^83:er... this is a credit card lei...
debit card is good enuff for students tho... -
If they are half as smart and mature as expected, then there is no problem giving them credit cards with no credit limits.Originally posted by Mid9Sun:Any many of them are not exactly smart or mature as I observed