Is it wise to pay bills with credit card?
-
Originally posted by the Bear:
always pay your credit card bills full..
if they want to take advantage of you, you can do the same to them but it requires discipline...
then you can earn shitloads of points and whatever it is...
however, if you cannot be disciplined, never ever go near credit cards
if we pay them more than we owe
then the bank have to pay us interest?
-
Delinquency rate for credit cards has fallen over past 10 years
By Millet Enriquez | Posted: 12 October 2012 2022 hrs
Singaporeans may be charging a higher amount of credit on their cards on average every month, but the Credit Bureau Singapore (CBS) has said the number of accounts with missed payments have dropped in the past 10 years.
This is due to low unemployment levels and responsible lending policies.
While the monthly credit card balance per consumer - which consists of charged amount and rollovers - rose 54 per cent from S$3,275 in 2002 to S$5,034 in 2012, the percentage of credit cards with overdue payments fell to 2.07 per cent of credit cardholders this year.
That is compared to 2.4 per cent a decade ago.
The average monthly default rate in the past eight years was also at a low of 0.06 per cent.
The bureau, which celebrates its 10th anniversary this year, is set to introduce an SMS alert system by end-November to inform customers on fraudulent use of their identity for loan applications. This is to enhance its credit monitoring system.
CBS is also expanding its data provider base by including non-banking institutions like telecom and utility companies to gather customer data which can be used for credit assessment.
William Lim, executive director of the Credit Bureau Singapore, said: "This is what we normally call alternative data, the non-traditional source of data. It helps the new markets entrants, the consumers who have no credit history to have a credit history, so that the lenders can have better visibility in terms of their credit performance in the past. So if I am a new graduate coming onto the job market, there is actually no history that I would have with CBS."
CBS is also exploring cross-border exchange of data with credit bureaus in other countries.
Mr Lim said: "We believe that in a current situation where the workforce is very mobile, that can be beneficial to consumers as well as to lenders alike. So it is something that is on the table."
In his keynote speech, Minister of State for Trade and Industry Teo Ser Luck, who was guest of honour at the CBS 10th anniversary seminar on Friday, said Singapore ranked eighth in the world in terms of credit access, citing the Doing Business 2012 report by the World Bank.
He also noted the role of a strong credit bureau in a country's financial infrastructure and overall economic growth.
Set up by The Association of Banks in Singapore and Infocredit Holdings in 2002, CBS helps financial services firms in their risk management by providing credit data.
From an initial 10 members, the bureau now has 28.
It provides over one million credit reports to members each month - up from over 8,000 monthly a decade ago.
Its credit card base has also grown to over 1.4 million from only 747,091 in 2002.
- CNA/ms -
of course! I use my posb everyday credit card to pay bills, get points that I can use to get vouchers and items. Money out, and some money in.