Your guide to credit card applications in Singapore
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PUBLISHED ONFebruary 25, 2022 9:27 AMByTan Mae BrendaTan Boon Hun
Perhaps, this could be your first time applying for a credit card in Singapore. With the array of credit card options available in the market, you could be spoilt for choice.
To simplify the process for you, we have come up with a guide to applying for credit cards in Singapore. Read on to find out more about the different types of cards available, credit card terms, and use our credit card comparison in Singapore to find the best card to fund your expenses.
Why you should apply for a credit card
With the flexibility to buy now and pay later, having a credit card to fund your expenses definitely brings you a wide range of benefits.
Get rewarded while spending
Everyone loves getting rewards while spending. Depending on the type of credit card that you apply for, the rewards you stand to enjoy will vary. Typically, most credit card companies offer the following rewards:
- Cashback
- Air Miles
- Reward Points
Cashback, or rebates, can be accumulated in your card which can be used to offset your next bill, allowing you to save while spending!
For credit cards that allow you to earn air miles for every dollar you spend, such miles can be used to redeem air tickets and upgrades for your next travel trip.
As for cards that allow you to collect reward points, such points can be used to redeem vouchers or products from participating merchants. From dining to petrol rewards available for redemption, you can be sure to find one that attracts you!
Higher spending limit
As opposed to debit cards, credit cards offer you a greater spending limit. No longer confined to drawing down from your bank account, you will be issued a maximum card limit which is essentially a limit that you are not allowed to spend beyond. As such, you will be able to purchase anything that is within your credit limit with a simple tap on your credit card.
While this may sound exciting, it is imperative that you spend responsibly. Only then will you be able to build your credit score, eventually helping you to secure loans and apply for some credit cards in the future.
Minimum criteria to apply for credit cards in Singapore
For the majority of banks in Singapore, the minimum age requirement to apply to be the main cardholder for a credit card is 21. However, there are also credit cards designed for students that are available in the market. For such cards, the minimum age requirement is typically 18.
Of course, do check the terms and conditions for the card before applying.
According to the Monetary Authority of Singapore, credit card companies may only issue a card if the Singaporean individual meets the minimum requirements below.
| Up to 55 years old | Above 55 years old | |
|---|---|---|
| Annual Income Includes non-employment income |
$30,000 | $15,000 |
| Total Net Personal Assets | >$2 million | >$750,000 |
| Total Net Financial Assets | >$1 million | $30,000 |
For foreigners looking to apply for a credit card in Singapore, credit card companies often require that the minimum salary be $40,000.
Apart from the minimum requirements above, the Monetary Authority of Singapore has also stipulated credit limits.
| Up to 55 years old | |
|---|---|
| Annual Income | Regulatory Credit Limit |
| ≥$30,000 to <$120,000 | Up to four months’ income |
| ≥$120,000 (or net personal assets exceeding $2 million, or net financial assets exceeding $1 million) |
No regulatory limit |
| Above 55 years old | ||
|---|---|---|
| Net Personal Assets | Annual Income | Regulatory Credit Limit |
| S$750,000 - S$2m | ≤$15,000 | Up to $2,500 |
| ≤S$2m | >$15,000 to <$30,000 | Up to two months’ income |
| ≤S$2m | ≥$30,000 to <$120,000 | Up to four months’ income |
| Any | ≥$120,000 | No regulatory limit |
| [embed]None[/embed] | Any | No regulatory limit |
Credit card terms explained
For those new to credit cards, the terms used may scare you. To ensure that you understand the terms used by your credit card company, below is a table that summarises the definition of the terms most commonly used.
| Term | Definition | |
|---|---|---|
| Annual Fee | Annual membership fee | |
| Annual Percentage Rate (APR) | Yearly interest rate that you are charged on purchases if you have a balance on your credit card | |
| Basic Cardmember | The person at whose request one or more supplementary cards have been issued by the company to supplementary card members | |
| Cash Advance | Short term loan offered by your credit card issuer | |
| Credit Limit | Maximum amount allowed to be charged on your credit card | |
| Credit Score | A number reflecting consumer's creditworthiness. The higher the score, the better a borrower looks to potential lenders. It is dependent on your credit history - number of open accounts, total levels of debt, and repayment history |
|
| Finance Charge | Interest and other fees when you are unable to pay the full amount back within the grace period | |
Which type of credit card is the best for you
Depending on your lifestyle and expenses, different cards will benefit you to different degrees. As such, before deciding on your credit card, do take time to analyse your spending habits and lifestyle in order maximise your savings and rewards.
Cashback credit cards
Essentially, a cashback credit card allows you to earn rebates while spending. A handful of credit cards offer a flat-rate cashback on all purchases such as the American Express True Cashback Card.
On the other hand, there are others who offer higher percentages of cashback depending on your expense such as the Citi Cash Back Card . Such cashback, or rebates, will be reflected in your statement and can be redeemed at participating merchants to offset the cost of your next purchase.
Air Miles credit cards
For avid travellers, air miles credit cards are the best cards for you! As countries reopen their borders, travel will definitely resume, albeit not to pre-covid levels. An air miles credit card will allow you to earn miles for each dollar spent.
For instance, the American Express Singapore Airlines KrisFlyer Card with a mile conversion rate of 2 miles per S$1 spend on SingaporeAir online & app, SilkAir, KrisShop in-flight & online, 2 miles per $1 spend in foreign currency overseas in June & December only, and 3.1 miles per S$1 spend on Grab transactions.
Functioning as a form of loyalty benefit, it rewards customers for spending more using their credit card as the more one spends, the more miles they accumulate. Such miles can be used to redeem products, tickets, and upgrades on your flight.
Student-friendly credit cards
Catering to the younger audience with lower budgets, student-friendly credit cards typically have low fixed fees and credit limits as well as no income requirement.
Take the Citi Clear Card for instance. With a low annual fee of $29.96, waived in the first year, and eligible for those aged 18 and above, it is an affordable option for students looking to own a credit card. Coupled with an absence of a minimum income requirement and a $500 credit limit, it prevents them from spending beyond their capacity.
Evidently, there are student-friendly options available. However, there are alternatives such as a debit card that is linked to your checking account. Hence, do explore your options first before making a decision.
Visa vs Mastercard vs American Express
The majority of electronic payments in Singapore are done via Visa, Mastercard, and American Express. Yet, only American Express issues debit and credit cards.
Between Visa and Mastercard , there is really no significant difference. Both Visa and Mastercard have similar rates of acceptance in Singapore and overseas as most merchants, offline and online, accept both modes of payment.
However, the main difference lies in its loyalty program. Mastercard generally offers more payment network-wide promotions as well as a better set of benefits for those with higher tier cards.
As for American Express, a key differentiating factor is its benefits. Because it is a credit card issuer, they are able to collaborate with merchants to provide you with better deals, especially in the dining and travel categories. That said, this is only the case should you qualify for their membership.
Credit card comparison across Singapore - find the best one for yourself
To help you find the best credit card for your lifestyle and needs, we have listed our top picks for the following categories.
Best cashback credit card in Singapore
UOB One Credit Card: Highest Flat Rebate Card
| Apply Now Apply Now |
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UOB One Card . Cardholders earn 5 per cent rebate on all purchases if they spend $2k/month for three months in a row), boosted to 10 per cent on Grab transactions and 6 per cent on recurring bills. This quarterly system is beneficial for those with stable spending, but people with lower spend–or who are inconsistent from month to month–will earn somewhat less. Spending $1k/month or $500k/month for the quarter earns 3.33 per cent rebate, up to $100/quarter or $50/quarter respectively. Nonetheless, all cardholders can benefit from UOB SMART$ Rebate Programme, which supplement cashback with additional savings and discounts. If you have a consistent budget, you may be able to maximise earnings on all spend with. Cardholders earn 5 per cent rebate on all purchases if they spend $2k/month for three months in a row), boosted to 10 per cent on Grab transactions and 6 per cent on recurring bills. This quarterly system is beneficial for those with stable spending, but people with lower spend–or who are inconsistent from month to month–will earn somewhat less. Spending $1k/month or $500k/month for the quarter earns 3.33 per cent rebate, up to $100/quarter or $50/quarter respectively. Nonetheless, all cardholders can benefit from UOB SMART$ Rebate Programme, which supplement cashback with additional savings and discounts. |
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| Apply Now Apply Now |
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UOB One Card . Cardholders earn 5 per cent rebate on all purchases if they spend $2k/month for three months in a row), boosted to 10 per cent on Grab transactions and 6 per cent on recurring bills. This quarterly system is beneficial for those with stable spending, but people with lower spend–or who are inconsistent from month to month – will earn somewhat less. Spending $1k/month or $500k/month for the quarter earns 3.33 per cent rebate, up to $100/quarter or $50/quarter respectively. Nonetheless, all cardholders can benefit from UOB SMART$ Rebate Programme, which supplement cashback with additional savings and discounts. If you have a consistent budget, you may be able to maximise earnings on all spend with. Cardholders earn 5 per cent rebate on all purchases if they spend $2k/month for three months in a row), boosted to 10 per cent on Grab transactions and 6 per cent on recurring bills. This quarterly system is beneficial for those with stable spending, but people with lower spend–or who are inconsistent from month to month–will earn somewhat less. Spending $1k/month or $500k/month for the quarter earns 3.33 per cent rebate, up to $100/quarter or $50/quarter respectively. Nonetheless, all cardholders can benefit from UOB SMART$ Rebate Programme, which supplement cashback with additional savings and discounts. |
Best miles credit card in Singapore
DBS Altitude Visa Card: Affordable Perks w/ Fee-Waiver
| Apply Now Apply Now |
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DBS Altitude Visa Card stands out as one of the most affordable travel cards that offers both high miles rates as well as luxury perks. Cardholders enjoy 1.2 miles per S$1 local spend, two miles overseas, and three miles for online travel bookings–and miles earned never expire. Even better, consumers receive two free lounge visits annually plus dining and golfing privileges. Cardholders even receive comprehensive free travel insurance. The already reasonable $192.6 fee is waived with $25k annual spend, making DBS Altitude Visa a great card for average travellers seeking affordable perks stands out as one of the most affordable travel cards that offers both high miles rates as well as luxury perks. Cardholders enjoy 1.2 miles per $1 local spend, two miles overseas, and three miles for online travel bookings–and miles earned never expire. Even better, consumers receive two free lounge visits annually plus dining and golfing privileges. Cardholders even receive comprehensive free travel insurance. The already reasonable S$192.6 fee is waived with S$25k annual spend, making DBS Altitude Visa a great card for average travellers seeking affordable perks. |
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| Apply Now Apply Now |
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DBS Altitude Visa Card stands out as one of the most affordable travel cards that offers both high miles rates as well as luxury perks. Cardholders enjoy 1.2 miles per $1 local spend, two miles overseas, and three miles for online travel bookings–and miles earned never expire. Even better, consumers receive two free lounge visits annually plus dining and golfing privileges. Cardholders even receive comprehensive free travel insurance. The already reasonable $192.6 fee is waived with $25k annual spend, making DBS Altitude Visa a great card for average travellers seeking affordable perks stands out as one of the most affordable travel cards that offers both high miles rates as well as luxury perks. Cardholders enjoy 1.2 miles per $1 local spend, two miles overseas, and three miles for online travel bookings–and miles earned never expire. Even better, consumers receive two free lounge visits annually plus dining and golfing privileges. Cardholders even receive comprehensive free travel insurance. The already reasonable $192.6 fee is waived with $25k annual spend, making DBS Altitude Visa a great card for average travellers seeking affordable perks. |
Best Student-Friendly Credit Card in Singapore
OCBC Frank Card: No-Fee Rebates for Online Spend
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OCBC Frank Card, which offers 6 per cent on FX, online, and mobile contactless spend. Cardholders can earn an additional rate of 0.3 per cent on all other purchases with no minimum spend requirement. Eligible online spend is quite comprehensive, ranging from online retail to travel bookings and more. The $600 minimum spend requirement is one of the lowest on the market, and consumers who spend $10k annually also earn an annual fee-waiver. These features make OCBC Frank Card especially accessible, and a great option for young adults with lower budgets who still want to earn at high rates. Young adults seeking access to high rebates after just $600 spend might want to check out, which offers 6 per cent on FX, online, and mobile contactless spend. Cardholders can earn an additional rate of 0.3 per cent on all other purchases with no minimum spend requirement. Eligible online spend is quite comprehensive, ranging from online retail to travel bookings and more. The $600 minimum spend requirement is one of the lowest on the market, and consumers who spend $10k annually also earn an annual fee-waiver. These features make OCBC Frank Card especially accessible, and a great option for young adults with lower budgets who still want to earn at high rates. |
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OCBC Frank Card, which offers 6per cent on FX, online, and mobile contactless spend. Cardholders can earn an additional rate of 0.3per cent on all other purchases with no minimum spend requirement. Eligible online spend is quite comprehensive, ranging from online retail to travel bookings and more. The $600 minimum spend requirement is one of the lowest on the market, and consumers who spend $10k annually also earn an annual fee-waiver. These features make OCBC Frank Card especially accessible, and a great option for young adults with lower budgets who still want to earn at high rates. Young adults seeking access to high rebates after just $600 spend might want to check out, which offers 6 per cent on FX, online, and mobile contactless spend. Cardholders can earn an additional rate of 0.3 per cent on all other purchases with no minimum spend requirement. Eligible online spend is quite comprehensive, ranging from online retail to travel bookings and more. The $600 minimum spend requirement is one of the lowest on the market, and consumers who spend $10k annually also earn an annual fee-waiver. These features make OCBC Frank Card especially accessible, and a great option for young adults with lower budgets who still want to earn at high rates. |
To find out more about the best credit cards, check out our comprehensive review on the best credit cards for the various categories !
How to apply for a credit card in Singapore
1. Credit card application
You may apply via ‘Apply Now’ on the individual review page on the ValueChampion site. Alternatively, head over to your chosen bank’s branch near you or their website to apply for your card.
Do read the terms and conditions before signing up.
2. Check your eligibility
Fill in the application form to assist the bank in evaluating your credit rating as well as eligibility.
3. Submit documents
Depending on the bank that you have applied to, the required documents will vary. Typically, banks will require that you submit a copy of the following:
Singaporeans
- NRIC/FIN (Front and Back)
Salaried employee
- Latest 12 months’ CPF statement
- Latest Income Tax Notice of Assessment
- Latest Computerised Payslip
Self employed
- Latest Income Tax Notice of Assessment
- Latest Bank Statement
Foreigners
- Valid passport
- Employment Pass (Front and Back)
- Resident Proof (Utility Bill, Telephone Bill)
- Latest Income Tax Notice of Assessment
- Latest Computerised Payslip
4. Wait for approval
Sit back and wait for your credit card application to be processed and approved. Typically, it will take 10 to 14 business days. Once it has been approved, you will receive a letter with your credit card.
5. Activate your card
In the letter enclosing your new credit card, there should be a guide to assist you in activating your card via a phone call or verification SMS. Alternatively, you may use your bank’s website or mobile application to do so.
Tired of checking every bank’s website to find the perfect credit card that suits your lifestyle? We have made it easier for you by compiling the best cards for each category!
This article was first published in ValueChampion.