Get Credit Cards Approved | Apply for Credit Cards in Singapore
Credit Cardsby Priyadarshini 3 February 2023
Was your most recent credit card application turned down? Here are four possible reasons why your application was denied by the bank. In this blog, we tell you how to get credit cards approved in Singapore.
Having a credit card in one’s wallet provided the owner the impression of having a high social status. Today, 73% of Singaporeans carry at least one credit card in their wallet. In fact, approximately 10% of Singaporeans own more than six credit cards.
Why do you need credit cards?
There is no secret to tell, nor is it rocket science to comprehend the advantages of credit cards. Its incentives, cashback offers, fuel savings, insurance perks, travel, and other benefits are undeniably appealing. People are also more likely to shop online, with credit cards accounting for 68% of online purchases.
Even though banks are desperate to offer credit card services to individuals, your credit card application may be rejected for no apparent reason.
Get Credit Cards Approved in Singapore
So, in that case, what should you do? Of course, either of the following:
If you’re applying for a new card, avoid the blunders listed below.
If your card application is denied, correct the errors and reapply.
So, here are some common blunders and reasons why financial organizations refuse to provide you with a credit card.
Get Credit Cards Approved in Singapore
Applying for many credit cards at the same time
This is one of the most typical blunders made by new applicants. When applying for credit cards, many consumers send multiple applications to various financial institutions at the same time. Different cards have different rewards, and you’d naturally want to make use of all of them. One card may provide significant savings for shopping, while the other may provide thrilling mileage accrual. Who isn’t going to acquire all of these cards?
When you apply for a credit card, the bank will call a credit agency to collect your credit score. This is to guarantee that you have kept proper financial records and do not have a large debt to pay. If you apply for multiple credit cards in a short period of time, the banks may believe you are overextending yourself and decline your applications.
So, what should you do now?
The good news is that your credit score will likely improve with time. So, before reapplying for a credit card, be patient and wait a few months. In addition, never apply for a loan and a credit card in the same month.
Utilizing your whole credit limit
Banks may grant you a large credit limit, but it is not advisable to use it entirely. You pay your debts on time and never miss a payment; hence, your payment history demonstrates your legitimacy. However, if you always utilize your whole credit limit, the bank will be hesitant to issue you another credit card. The ideal strategy is to limit your credit card spending to under 40%.
Balance your expenses if you already have many credit cards. Don’t just keep using one credit card till it reaches its limit while the others sit in your wallet unused. It’s a good thing you pay your bills on time. However, every time you exceed 50% of your credit limit, your credit score suffers.
What is the best course of action?
Try not to spend more than 30% of your credit limit. Also, make sure to pay your bills on schedule. If you are in need, use your other credit cards. Wait a few months for your credit score to improve before applying for another card.
Failure to fulfill the minimum salary requirement
This is the first and most crucial prerequisite for issuing a credit card. If you do not meet the minimal salary criterion, no bank will issue you a credit card. In Singapore, the minimum yearly wage required to obtain a credit card is S$30,000. Even if your salary is somewhat less than S$30,000, your application will very certainly be refused. So, make sure you can demonstrate to the banks that you earn enough money and are eligible for a credit card.
There are credit cards available for low-income people; however, keep in mind that the points and benefits offered by these cards aren’t exactly outstanding.
Ineligibility for Age
Banks will not only verify your income, but they will also verify your age. If you are too young, the bank will most likely decline your request. It is, after all, a legal matter.
Practice moderation and restraint to secure a successful credit card application. There should be no reason for your credit card application to be rejected if you have been a good debtor and meet the minimum age and wage standards.
Home Loan | Education Loan | Personal Loan | Car Loan | Travel Insurance | Lifestyle | Real Estate | Credit Cards