Is getting an OCBC Credit Card Essential these days?
Having a credit card is almost typical for people nowadays. Online payments are normalised in nearly all establishments. But getting a credit card has its pros and cons.
A credit card is becoming essential as time goes by. You may be having a lot of questions about getting a credit card like:
Is having a credit card necessary these days?
Am I financially ready for a credit card?
What are the risks and conditions of having a credit card?
Read further to get tips and facts before getting a credit card.
Credit cards can help you build your credit score.
Your credit card issuer will record all your transactions using your credit card. If you pay on time, this is a great way to build your credit score. In addition, credit cards will give you the flexibility to pay your balance each month.
Your credit score is essential. If you plan to get a loan in the future, all financial institutions will refer to your credit score. It will help them determine whether you’re a high-risk borrower or not.
A solid credit history is a significant edge for future financial transactions. First, however, you should make sure to pay your monthly payments on time.
Failure to pay your monthly dues will negatively affect your credit score. Always remember that approval of loans dramatically depends on your credit score.
You might want to rethink every purchase when you have your credit card. Also, make sure to keep your credit score clean to avoid future problems.
Credit Cards give you more protection.
Having a credit card is safer than carrying a bunch of cash around. If ever you lose your credit card, you can quickly call and block your card.
Most banks also offer a lot of types of fraud protection. A credit card will make you feel safe with all your transactions, as banks have multiple ways to confirm your transaction before pushing it through.
Credit cards also offer extended warranties and purchase protection. If items purchased through the credit card are damaged, you can dispute the charge easily. There are a lot of benefits that are enclosed depending on the credit card you apply for.
Enjoy cashback rewards.
One of the best features of having a credit card is having rebates and cashback. This said cashback could be accumulated and converted into cash. You can also use these for travel points.
Using a rewards type of credit card can help you save more for other purchases. However, this might be tempting. Make sure that you only spend according to your lifestyle.
For example, you might earn $500 cash if you spend $3,000 in the first three months after getting your credit card. After that, you can spend it on essential things or save them for future uses.
Having a credit card is excellent for emergencies.
Emergencies are inevitable these days. Your credit card is a meaningful way to pay anything when there are emergencies. Credit cards can serve as a financial cushion whenever needed. Having a credit card will surely give you convenience in your everyday life.
Use your credit card everywhere.
Credit cards are the most convenient payment mode wherever you go. Most credit cards can cater for purchases even outside the country. So you can have a vacation anywhere without worrying about carrying so much cash.
Use credit cards from convenience stores to high-end malls, even for hotels and parks. Credit cards are more convenient for online shopping, especially during these pandemic times. Moreover, most transactions are made online, even for buying goods and services. In short, using credit cards is the cashless way we buy.
But despite all these pros of having a credit card, there are still points to keep in mind before finally deciding to get one.
Two Mindful Points About Getting A Credit Card
Annual fees
Annual fees are commonly waived for the first year but will be charged to you the following year. You can avoid annual fees if you stick to cash transactions. Also, there would be an interest charged if you are unable to pay within the monthly due.
Spend habits
When you finally have your credit card, will you be able to resist the temptation of splurging? Having a credit card may be dangerous to your financial standing. Swiping your credit card can lead to unnecessary purchases. If you cannot pay for your debts, your credit score will get lower. You might be unable to borrow loans for more critical causes.
Think thoroughly before getting a credit card. Talk with a financial specialist if you are truly ready for the financial obligations that a credit card can bear.
Getting An OCBC Credit Cards Singapore
Types of credit cards that OCBC offers
There are a lot of types of credit cards that you can choose from. OCBC will also give you health and wellness deals with HealthPass. HealthPass is a daily health app made by OCBC. This app lets you choose from over 150 general practitioners available for telehealth and in-clinic visits. Here are the options that you might consider when you get a credit card through OCBC
OCBC 365 Credit Card
This type of credit card that OCBC offers is the one that you can use for your everyday purchases. Cashbacks are applicable for both local and international purchases.
Earn 6% cashback on dining and online food delivery. For groceries, travel, land transport and utilities, you can earn up to 3% cashback. For fuel, you can earn up to 5% cashback.
Who is eligible for this type of credit card? The minimum age should be 21 years old. The annual income required should be $30,000 and above for Singaporeans and Singapore PRs. For foreigners, the annual income should be $45,000 and above.
What are the fees included in OCBC 365? For the principal card, fees are waived for the first two years. After that, however, there will be a minimum spend requirement to waive the annual fee.
For example, your annual fees will be waived if you spend $10,000 within a year. For the succeeding years, a fee of $192.60 annually. If you choose to have a supplementary card, the annual cost of the card is $96.30.
OCBC 90°N Card
This credit card type is perfect for people who travel a lot, whether for business or recreation. This card will be your travel companion, rewarding you with more travel points for every spend.
Travel points do not expire and can be redeemed easily. Also, there would be no conversion fees. You can also get up to 2.1% cash rebates from your earned Travel$. You can also use this card for online shopping and groceries.
OCBC Titanium Rewards Credit Card
Titanium Rewards Credit Card is the perfect credit card for you if you are fond of online shopping. This type of credit card will give you a lot of awards as you spend.
You can earn 50 OCBC$ for every S$5 spent on eligible online and retail purchases. You can also earn rewards wherever you go. So, whether you shop online or in stores, locally or overseas, you will be able to earn rewards.
You are also entitled to e-Commerce Protection, which protects you from the delivery of defective goods.
Who is eligible for this type of credit card?
You should be 21 years old and above. If you are a Singaporean or Singapore PR, your annual income must be at least $30,000. If you are a foreigner, your annual income must be at least S$ 45,000.
OCBC Cashflo Credit Card
OCBC Cashflo Credit Card is the first auto-instalment card. With this type of credit card, you can enjoy monthly cash rebates of up to $100. In addition, you can earn 0.5% cash rebates if your monthly bill is less than S$ 1,000.
This credit card will automatically split your payments into three or six-month instalment periods. So, for example, if your transactions are between $100 and $1,000, you can split your cost within three months.
If your transactions are equal to or greater than S$ 1,000, you can pay for your transactions within six months. But you will need to pay a processing fee of 1%. You can enjoy 0% interest despite splitting your payments into instalments.
You can apply for this credit card online via MyInfo. Worry less about the annual fee as it is waived for the first two years. You will be charged an annual fee of $160.50 for the succeeding years.
If you want to get a supplementary card, annual fees for the said card are also waived for the first two years. Then, the supplementary card will be charged S$80.25 for the annual fee for the succeeding years.
Make sure to pay your dues on time. OCBC charges a fee of S$ 100 for late payments. If you want your annual fees to be waived, you should spend a minimum of S$ 10,000 annually. But you might end up paying more, trying to waive the annual fees. Avoid unnecessary purchases when you get a credit card.
What credit card fits your spending habit?
There are many options when you choose to get a credit card. The question is, will you be able to maintain having a credit card? Are you financially ready for a credit card? Having a credit card may be convenient. However, you must be smart enough to control the urge to splurge using your credit card.
You must be mentally ready to purchase what is needed. A credit card can make you purchase things outside your purchasing power. If you are responsible enough to manage your finances, here are more options that you can consider. Let us compare the different types of credit cards for each bank.
Citi Cash Back + Mastercard and Standard Chartered Unlimited Cashback Credit Card have no minimum spending required and no cap on cashback earned. However, this credit card has a slightly high annual interest rate. Annual fees are waived for the first year and to be collected the following year. The said annual interest rate is 26.90%. You are also entitled to pay $192.60 of the principal fee annually.
CIMB Visa Signature, CIMB World Mastercard and HSBC Revolution Credit Card have the same rates for annual fees. The annual fee for these credit cards is 25.90%. The interest-free period ranges from 20-23 days. The minimum monthly repayment is 3% or S$ 50, whichever is higher.
These cards are also among the best options for applying for your principal credit card. These cards will not charge you for an annual principal fee or supplementary annual fee.
There are a lot of options in the market available. The best option for a credit card is up to you. Make sure that getting a credit card will help you beneficially. Always ask about the terms and conditions incorporated in your chosen credit card.
What are the needed documents when you apply for a credit card?
For Singaporeans and Singapore PRs, you can apply via MyInfo. Other documents needed are utility or telephone bills. Also, be ready with your Income Tax Notice of Assessment. Bring also your latest original computerised payslip.
Overall, there are a bunch of options that you can consider in getting a credit card. Having a credit card will benefit you if you use it wisely. Remember not to overspend, as it may weaken your purchasing power.
Also, be cautious of the promos that will make you waive your annual fees. Your annual fees may be waived, but you will end up spending more than what you are capable of.
Lastly, remember that failing to pay your credit card debts will affect your credit score. This is because banks and lending institutions are very much aware of your records and credit score.
Always resist the urge to spend more than what you can. A credit card is useful as long as it is used correctly.
If you think credit cards aren’t that essential for you, yet you need extra money for emergencies, get a low-interest personal loan from trusted licensed moneylenders.
Money lending entities provide instant cash loans to people who need them immediately. In addition, there are online loan services you can benefit from. Fewer documents are needed and don’t require any collateral. It’s one of the best alternatives whenever you need cash for emergencies.