Nowadays, almost everyone who qualifies for a credit card owns at least one. There are many different types of credit cards in the market designed to suit different consumers. Most cards are tailored to target a particular lifestyle or spending behaviour, where banks usually partner with country clubs, interests groups or varsity alumni to offer a specific range of consumer benefits. For example IKEA Friends VISA card, which is a tie-up between OCBC bank and IKEA, offers special treatment at IKEA and provides solutions to home-related problems; The Choice Card, a tie-up between HSBC and Cold Storage Group of stores allows shoppers to shop for everyday items while earning rewards points from HSBC.

Imagine, there are more than 5 million credit cards in Singapore and more than half a million are issued each year. Therefore, choosing the right credit card can be a daunting task. However, it is important to choose the right card so that you can enjoy attractive rewards and discounts on your purchases. Owning a credit card is a big responsibility and overspending can damage your credit rating and land yourself in deep debt trouble.

Minimum Income Requirement
Card issuers often assess and qualify card applicants by their annual income range. Usually the minimum income requirement is S$30,000 for a standard card, S$45,000 for a gold card, and likely to be above S$60,000 for foreigners.

Interest Rate
This is the percentage (per unit of time) charged by a bank or financial institution for the use of their money. This interest rate is charged to the balance unpaid if the bill has not be cleared within the grace period. For people who are not that disciplined about paying off their credit cards in full and on time every month, they need to look out for a low interest credit card, which could offer them significant savings.

Balance Transfer Rates
These are introductory interest rates upon moving an unpaid balance from one open credit account to another. Balance transfers to a credit account with a lower interest rate should offer more savings. However, some credit card issuers charge a fee to transfer balances.

Handling/Processing Fees
Some issuers charge a fee when the card is used to obtain a cash advance, when bill payments are late, or when the credit limit is exceeded. Some issuers may charge a flat fee every month whether the card is used or not.

Card Benefits
Issuers may offer additional benefits, some with an associated cost, such as insurance, credit card protection, discounts, rebates and special merchandise offers. Look closely at all costs, benefits and rewards to decide if these options would be beneficial. Some credit cards offer programs that reward you for using their credit card for purchases. For example, frequent flyer programs, offer flyer points as well as discounts on the air tickets by the affiliated airline. Cash back credit cards give you cash back or credit toward additional purchases. You will receive a small percentage of cash back for the purchases you make with that card.

Customer Service
Many issuers have 24-hour, toll-free hotlines that offer customer service. For easy access to services, look out for exclusive service hotlines or concierge services offered by some premium cards.

Finally, you may wish to visit Qotion.com to compare the various features of different credit cards before you decide on which credit card to go for.

To find out more, you may also visit the banks and financial institutions’ homepage. Here are the direct links to the banks’ and financial institutions’ credit cards page.

American Express
Citibank
DBS/ POSB
Diners Club International
HSBC
Maybank
OCBC
Standard Chartered
UOB

For your information, you may go to Shopping Malls Directory to find out the location of banks in Singapore malls.