Can someone explain to me the benefits of credit cards
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Hi all.
Forgive my ignorance ar. I don't know anything about credit cards. I must be calculating something wrong or missing something.
I called DBS to asked about loan and credit card. I wanted to buy a new computer, laptop, sofa and some smaller furnitures. I thought of borrowing $5000-$7000
I am quite a money consious person. Everyone I know all owns a credit card. I only have a debit card. I don't understand. I am currently earning $20,000-$25,000 annually. No car. No house installments. Only got M1 SP S&CC Bills. All other entertainment. Cash. Haha. No debts currently.
The minimum amount paid per month for credit card is $50 or 3% which ever is higher. The outstanding amount is charged at 25% per annum. Wah lao. I know so many people use credit cards but I am sure they understand 25% is a lot. If I use to buy $1000 item I pay $50. The remaining is $950. After interest 25% it has become 25% x $950 = $237.50. That means I still got $1187.50 outstanding. Siao bo.
If I loan $1000 and pay annually. The interest is 10%. I pay finish in one year. Total cost to me is $1100. siao...
I must be calculating something wrong. I must be missing something. Can someone explain the benefits/purpose of credit card? A detailed mathematical explantion is much appreciated! Thank you!.
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Don use future money.got money then buy.bank r like o$p$.
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buy now pay later
can pay by instalments (like furniture, electronics)
no other benefits
in fact, u are in debt
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you are too small to understand all these.
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Basically, you are taking a loan from a bank every time you use a credit card. The loaned amount goes directly to the shop. Then you have to pay back the loan with interest.
On my part, I don't have a credit card even though I am already 30 years old and earn a decent wage.
Instead, I have two debit cards (one Visa, one Mastercard). This makes sure that I can only spend the money that I already have.
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And TS is only calculating using simple interest...
Have to calculate using compound interest, which of course will be higher, depending on when u finish paying...
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You're better off taking a loan, and pay installments, not taking a loan off a credit card, and pay installments.
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some banks got discounts to use their cards. IT is harder to rob you if you dont carry ready cash / atm
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cannot advice chiu cos i dont have cc one
i pay cash or use net only
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MoneySENSE - A National Financial Education Programme
MoneySENSE is a national financial education programme launched by Mr. Lee Hsien Loong, then Deputy Prime Minister and Chairman of the MAS on 16 October 2003. MoneySENSE brings together industry and public sector initiatives to enhance the basic financial literacy of consumers.
The MoneySENSE programme covers 3 tiers of financial literacy:- Tier I - Basic Money Management - which covers skills in budgeting and saving, and provides tips on the responsible use of credit;
- Tier II - Financial Planning - to equip Singaporeans with the skills and knowledge to plan for their long-term financial needs; and
- Tier III - Investment
Know-How - which imparts knowledge about the different
investment products and skills for investing.
MoneySENSE is a national financial education programme launched by Mr. Lee Hsien Loong, then Deputy Prime Minister and Chairman of the MAS on 16 October 2003. MoneySENSE brings together industry and public sector initiatives to enhance the basic financial literacy of consumers.
Since its launch in October 2003, MoneySENSE has published over 253 educational articles in the media, organised talks, seminars and workshops that have attracted over 93,000 participants as well as issued 29 consumer guides with a total circulation exceeding 2.2 million.
MoneySENSE has also disseminated financial tips and messages in interesting ways such as a series of games at the inaugural MoneySENSE 2006 Roadshow which attracted over 89,000 visitors, organised a MoneySENSE-CPF inter-polytechnic financial education outreach that saw over 33,000 visitors, and subsequent roadshows at the Institute of Technical Education and various locations. In addition, MoneySENSE commissioned TV shows “Dollar and Sense” and “Mind Your Money” which saw over 1.1 million viewers, and various radio programmes with total listenership exceeding 1 million.
The MoneySENSE programme covers 3 tiers of financial literacy:
- Tier I - Basic Money Management - which covers skills in budgeting and saving, and provides tips on the responsible use of credit;
- Tier II - Financial Planning - to equip Singaporeans with the skills and knowledge to plan for their long-term financial needs; and
- Tier III - Investment Know-How - which imparts knowledge about the different investment products and skills for investing.
MoneySENSE is spearheaded by the public-sector Financial Education Steering Committee (FESC). The FESC provides strategic direction and oversees financial education programmes in Singapore. It comprises representatives from the Ministry of Social and Family Development, Ministry of Education, Ministry of Manpower, Central Provident Fund Board, Monetary Authority of Singapore, National Library Board and People's Association.
The FESC works closely with the MoneySENSE Industry Working Group (MIWG) to implement MoneySENSE programmes. The MIWG comprises the Association of Banks in Singapore, the Association of Financial Advisers (Singapore), the Consumers Association of Singapore, the Financial Planning Association of Singapore, the General Insurance Association of Singapore, the Insurance and Financial Practitioners Association of Singapore, the Investment Management Association of Singapore, the Life Insurance Association of Singapore and Singapore Exchange Ltd. -
Credit Card: http://en.wikipedia.org/wiki/Credit_card
Hire-purchase: http://en.wikipedia.org/wiki/Hire_purchase
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Credit card is a "debt trap" if you dun know how to manage it. Help you to settle your bills oversea when you dun carry cash with you.
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then come back to SG then u know die
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www.creditbureau.com.sg
Every month, payment performance data is uploaded by the Banking and Finance industry to Credit Bureau Singapore (CBS).
Data relating to your loan payment performance is collated on your credit file and may be used by Banks and Finance companies as part of the assessment process for any new loans you may apply for, or for a review of your existing loans.
Your Credit Bureau file is an indication of your financial health. This is very important to the lenders as they assess the risk involved in granting credit.
You should therefore know what’s on your credit file and periodically check to see what new data has been uploaded.
How Do I Get A Copy Of My Credit File?
You can request a copy of your credit file on-line, at any of the 62 SingPost branches, at the Credit Bureau office, at CrimsonLogic Service Bureaus or at CASE office.
A transaction fee of $6 plus GST applies
You can request for a copy of your credit report at any of the following offices:-
1. Online
2. SingPost
62 SingPost Branches Islandwide
3. Credit Bureau(Singapore) Office
72 Anson Road, #11-03,
Anson House, Singapore 079911
Hotline: 6565 6363
Download Application Form
4. CrimsonLogic Service Bureau
133 New Bridge Road, Chinatown Point #19-01/02, Singapore 059413
Tel: (65) 6538 9507
1, Supreme Court Lane, Level 1, Supreme Court Building, Singapore 178879
Tel: (65) 6337 9164
5. CASE Office
170 Ghim Moh Road, #05-01, Ulu Pandan Community Building, Singapore 279621
Hotline: 6 1000 315
Your credit report is a record of your credit payment history compiled from different credit providers.
As most lenders will check your credit file to assess your credit worthiness prior to making a decision, a good credit repayment history will make it easier for you to obtain credit and to qualify for loans.
By reviewing your credit report regularly, it allows you to be aware of any information that is uploaded on your credit file.
The other advantage of monitoring your credit file is that it protects against possible fraudulent use of your personal details to obtain credit.
CBS’ ‘My Credit Monitor’ service checks your report daily and notifies you by email when key changes are detected. Early detection is key to minimising the damage that ID theft can have on your credit.
You can subscribe to ‘My Credit Monitor ’ service at any Singapore Post branch or visit the CBS office to make an application.
Your credit report also helps credit providers to make faster and more objective lending decisions. By providing credit data to its members (credit providers) under authorised conditions, CBS helps them to determine whether or not the person applying for credit is a good credit risk. In doing this, lenders can make better lending decisions quickly and objectively.
This will also contribute to a more competitive credit marketplace among the credit providers. With the Bureau in place, responsible customers can expect faster and more competitive services from the credit providers.
1. Pay your bills on time As far as possible, strive to pay up in full and on time.
Late or missed payments will certainly lower your credit worthiness. Therefore, be sure to check your bills to see when payments are due. Late fees and interest penalties add up quickly and make it hard to pay the balance. Payment history is an important factor in determining your credit worthiness. Since recent history carries more weight than what happened five years ago, getting in the habit of making on-time payments is an incredibly powerful way to improve your credit worthiness.
2. Pay down your debts and consider charging less
Lenders like to see plenty of breathing room between the amount of debt reported on your credit cards and your total credit limits. The more debt you pay off, the wider that gap and the better your credit worthiness. When you pay the full balance on your bill each month, you are taking advantage of an interest-free loan from the card issuer. If you make only the minimum payment on a significant balance, it can take years to pay off the full debt. If you are unable to meet the payment deadlines, let your financial institution know and the reasons why.
3. Limit the number of credit cards you own
Avoid multiple sources of credit. It is more manageable to keep track of 2 credit cards than 10. Opening a new credit line may reduce your credit worthiness, especially if you do not have a long and favorable credit history.
4. Cancel any unused cards
If you have many credit card accounts but are only using a few, it is a good idea to close out the unused ones. However, it is advisable to keep the cards that you have had the longest and cancel the new ones as a long record of prompt payments will improve your credit worthiness.
5. Stay out of bankruptcy if you can
Bankruptcy is the most catastrophic impediment to your good credit reputation -- far worse than delinquencies, loans or collections. Its impact, however, is dependent on how many defaults you made on your credit before you filed.
6. Don’t be afraid of credit counselling
Most of us want to pay our bills on time and as agreed. However, there could be unforeseen circumstances such as loss of employment, business failure etc, which makes it impossible to settle the minimum payments on the due dates stipulated by the bank. If you’re overloaded with high-interest debt and are in danger of falling behind on your payments -- or you already have -- consider working with a nonprofit agency such as Credit Counselling Singapore to set up a debt repayment plan. They can help you to reschedule payments with the creditors, negotiate lower interest rates and help you pay off your bills within a few years.
7. Get your credit report
Your credit report is a record of your credit payment history compiled from different credit providers. As most lenders will check your credit file to assess your credit worthiness prior to making a decision, a good credit repayment history will make it easier for you to obtain credit and to qualify for loans. By reviewing your credit report regularly, it allows you to be aware any information that is uploaded on your credit file. The other advantage of monitoring your credit file is that it protects against possible fraudulent use of your personal details to obtain credit.
8. Know the differences between Debit Card and Credit Card
When you charge a purchase on your credit card, you have a minimum of 30 days to pay the bill. If you do so, it will be to your benefit as you’re taking advantage of the card issuer’s money as a no-interest loan, provided you pay the balance in full each month. On the other hand, when you charge a purchase on a debit card, your bank will deduct your deposit account immediately. If you do not have sufficient funds in your bank account, the transaction will not be accepted.
9. Don’t close accounts if you still have debt remaining on them
Closing accounts before they are fully paid can hurt your credit worthiness. If you are planning on not using a certain credit card anymore, you should wait to close it until after you have paid it off. In order to keep yourself from charging, simply cut up the card into pieces and keep it in a drawer.
10. Don’t apply for lots of credit at once
People are bombarded with new credit card offers all the time. While it may be OK to sign up for a new credit card here and there, it is a bad idea to sign up for several at once. This sends a signal to creditors that you are desperate for credit and are a risk to loan to. Resist the urge to sign up for many credit cards at once and don’t overextend yourself.
Credit is an integral part of everyday modern life. From buying movie tickets, to paying for a meal at a restaurant or buying a car, credit is used. The most common use of credit is through credit cards. Knowing how to use credit wisely is a critical part of managing your finances and key to your financial health.
Advantages of using Credit:
Able to buy need items now
Don’t have to carry cash
Creates a record of purchases
More convenient than writing cheques
Consolidates bills into one payment
Disadvantages of using Credit:
Interest (higher cost of items)
May require additional fees
Financial difficulties may arise if one loses track of how much has been spent each month
Increased impulse buying may occur -
So long you can pay your credit card bills you are ok otherwise the "blood suckers" will go after you. Think wisely before you use your credit cards.
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notebk less than 1k can get already. compewter i help you buy and build with OEM OS less than 1k also. what sofa and furniture you lacknow at home? dont look at your some excess cash in bank accoutn then wonder what they can be used for. one day when you really need them then you will appreciate the savings you did back then.
your friend all got CC their problem. why you wanna conpy their problem and add it into your own?
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My friend, you need 30k per annum to get approved for credit card.
Too much debt no good for you.
But u can use it to get rebates when shopping spending, etc.
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All of chiu so rich have credit card.
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hanor hanor
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They say you need minimum 30k per annum to apply for lowest end card, but believe me, none of them check those credentials on your payslip, they just need it for paperwork cover.
They let your applications slip thru because they need their commissions.
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I think some credit cards got discounts for some shops....so using the cards will pay lesser prices. Plus got insurance coverage if you pay your airline ticket with those cards...Don't know still have that or not?
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offer discount so u will shop more spend more
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Originally posted by FireIce:
offer discount so u will shop more spend more
That's the whole idea isn't it? Supporting the economy by buying more stuffs ! Hahaha!
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In the past, only the rich have credit cards....now almost every working people will have credit cards...consumers are being tempted to spend more than what they can afford. I think that's the downside about credit cards. The good side is the convenience of not carrying cash when shopping.