Secured Credit Cards Singapore | Guide to Secured Credit Cards
Credit Cards
by Priyadarshini
26 February 2021
Owning a credit card comes with a lot of perks and facilities like discounts and concessions on petrol, dining out, online shopping, air miles, groceries, and even public transport. However, not everyone qualifies for a credit card. Credit cards have a minimum annual income requirement and credit rating is crucial for approval. In this blog, we tell you all about secured credit cards in Singapore.
Why is a Secured Credit Cards in Singapore helpful?
A secured credit card can help you rebuild your credit score while the 12-month cycle in your credit report resets. This is assuming that your bad credit history is due to non-payment of credit card bills on time. Such instances will lead to building a bad credit score on your profile. When you pay your bills timely for a secured credit card, it sends signals to the credit bureau that you are potentially a non-defaulter on loans which in turn will improve your credit score. Also, you can enjoy a wide range of perks and discounts for your daily necessities and even for a leisurely experience. A secured credit card also relieves you from the pain of carrying cash and maybe sometimes run short on cash.
How to apply for Secured Credit Cards in Singapore?
To apply for a secured credit card, you can pledge a fixed deposit amount of S$10,000 as collateral with the bank that will issue you the card. The credit limit of your card will be exactly the amount of your fixed deposit. For example, if you have pledged S$10,000 as your fixed deposit then the credit limit on your card will be S$10,000. Please note that you will not be able to withdraw your fixed deposit amount as long as you own the secured credit card. If you do want to withdraw the fixed deposit, then you need to terminate your secured credit card and inform the issuing bank to release the withheld amount of the fixed deposit. The processing time for you to receive the money-back can take up to 30 days or more.
Choose to Get a Supplementary Card
If someone in your family is working and you are not, then you can get a supplementary credit card. Most credit cards offer supplementary cards for family members that allow you to enjoy the same discounts and perks. The main applicant is also benefitted from promotions and rewards. Whatever amount is spent on the supplementary card is included in the minimum spend. Please be mindful of using the supplementary card in a financially responsible manner.
Here are some free-of-charge supplementary cards –
- Citi Premier Miles Visa – New customers get 45,000 welcome air miles. For local spending, you can get up to 1.2 miles for S$1. For all foreign currency spends including retail and online you can get up to 2 miles for S$1. This card is great for collecting air miles.
- Standard Chartered Unlimited Cashback Card – You can get up to 1.5% cashback on eligible spends and there is an unlimited cashback cap. There is also no minimum spend per month.
- HSBC Revolution – You can get 10 reward points for every SGD spend. You can also earn 4 air miles for every SGD spend. There is also no minimum spend per month on this card.
