Things to Know Before Getting Your First Credit Card | Singapore

Bank Accounts | Credit Cards

Scared using a Credit Card?

With so many stories floating all over about credit card frauds and improper usage of credit cards, many of you may shudder using credit cards. Don’t be scared, you can use your credit card by knowing properly what that colourful plastic card holds for you.

If you are using it at a merchant’s outlet, it is relatively easier, you need to swipe the card and enter PIN number and check the amount you shopped for properly.

But if you are using for online transactions, you need to be slightly more careful.

For this you need to know the following information:

• Your credit card number
• Your credit card expiry date
• Your credit card CVV (security code)

A secure website will also use 2-factor authentication (2FA). This means that they will send a code via SMS to your registered mobile phone. Make sure the bank has your latest mobile phone number because it can take up to one working day for the bank to update your mobile phone number.

CVV security code

It is a 3-digit number at the back of your Visa or MasterCard, next to the space where your signature needs to be. It’s the equivalent of your signature for online transactions, so keep it safe and don’t share it with anyone or on unsecured websites or even on phone.

What if your online transaction is declined? You thought maybe you have overshot your credit limit. But you find out that this is not the case. Check with your bank about the reason for the decline. They will be able to notify that if there is some fraud involved.

Or there may be a problem with the credit card chip, or if you’re using it overseas, the magnetic strip. If this is the case, you should be able to ask your bank for a replacement card, for which you don’t have to pay anything.

Finally, don’t forget to read your monthly statement carefully, which includes all your credit card transactions for that month, as well as some other information including the due date, minimum payment and account balance.

It may have some surprises for you which may land you in a soup.