Importance of Credit Cards | Apply for Credit Cards in Singapore

Bank Accounts | Credit Cards

Why having a Credit Card is important?

Credit Card – A major innovation of modern-day banking, their usage is quite widespread all over the world. We can safely say, it is a modern-day necessity like a mobile phone, maybe slightly short on priority. Worldly survival becomes challenging if you don’t own a credit card. You may require money to pay at any given point of time when you may or may not have enough cash. Then credit care comes to your rescue. So, what is a credit card?

As the name suggests, a credit card is a plastic money, which gives you access to that money which you don’t have. The access is not for any amount of money, but there are certain set parameters like it maybe two to four times of your monthly income. Suppose your income is $2000 Singapore Dollars, you would be able to spend somewhere between $4000 – $1000 in a month.

Factors you must keep in Mind 

You may have heard that credit card usage is risky. It may be true to some extent for which you need to watch out for. It may be a double-edged sword, if used properly it will save you and if not, it may ruin you financially. You need to be very careful about its users so that you don’t set your foot on the plastic road to bankruptcy.

Any traces of irresponsible behaviour in their usage may spell doom on your finances. Credit cards are the most accepted mode of payment world over but Singapore tops the charts in their usage. People love to shop, wine & dine, watch movies, pay utility bills, MRT passes, flight tickets, grocery shopping and many such activities with their credit card. The processing fee is a bit higher but so are the reward points. This way it is a win-win situation for both banks as well as customers. Who doesn’t love cash back or movie tickets or concert passes or even a complimentary dessert when you go for dining in a nice restaurant?

Besides, it also helps in building your credit history which helps when you are need of a loan. If all your payments are on the track like you pay the entire amount before the due date, you are a risk-free creditor of the bank. With credit card usage and timely repayment, your risk-profile is good for the bank, but if it is not then you may be in trouble when you look for credit from the bank.

So, watch out while using a credit card, for this big boon for your financial life.


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