If you’re in need of quick cash, a cash advance can be a helpful solution to tide you over. DBS is a popular bank in Singapore, and they offer cash advance services to their customers. A cash advance allows you to withdraw cash from your credit card, and the amount you can withdraw is usually a percentage of your credit limit.
DBS offers cash advance services to their credit card customers, and there is no minimum withdrawal amount. You can withdraw up to S$3,000 per day from a DBS/POSB ATM, and a transaction fee of 8% or S$15 (whichever is greater) applies to each cash advance transaction. The finance charge imposed on cash advances is 28.5% p.a. on the amount withdrawn, and it is chargeable on a daily basis from the withdrawal date until full payment is received.
If you’re considering applying for a DBS cash advance, it’s important to understand the fees and charges involved. You should also have a plan in place for managing your cash advance, as the high interest rates can quickly add up. However, if used responsibly, a cash advance can be a helpful tool for managing unexpected expenses.
Key Takeaways
- DBS offers cash advance services to their credit card customers, with a maximum withdrawal amount of S$3,000 per day.
- A transaction fee of 8% or S$15 applies to each cash advance transaction, and the finance charge imposed on cash advances is 28.5% p.a.
- It’s important to have a plan in place for managing your cash advance and to use it responsibly to avoid accumulating high interest rates.
Understanding DBS Cash Advance
If you’re looking for a quick cash solution, DBS Cash Advance is an option worth considering. Here’s everything you need to know about DBS Cash Advance in Singapore.
What Is a Cash Advance?
A cash advance is a feature on your credit card that allows you to withdraw cash up to your available credit limit. It’s a short-term loan that comes with a high-interest rate and fees. DBS Cash Advance is available to DBS/POSB credit cardholders and DBS Cashline account holders.
How DBS Cash Advance Works
DBS Cash Advance allows you to withdraw cash from your credit card or Cashline account up to your available credit limit. The withdrawal limit is capped at S$5,000, and the maximum withdrawal amount from a DBS/POSB ATM is S$3,000 per day.
When you withdraw cash using DBS Cash Advance, you’ll be charged an 8% transaction fee or S$15, whichever is greater, for each cash advance transaction. Additionally, a finance charge of effective interest rate 28% p.a. (subject to compounding if the charges are not repaid in full) on the amount withdrawn is chargeable on a daily basis from the date of withdrawal until receipt of full payment.
It’s important to note that the prevailing interest rate for DBS Cash Advance is high, so it’s advisable to repay the amount withdrawn as soon as possible to avoid paying more in interest charges.
In summary, DBS Cash Advance can be a useful option for those in need of quick cash. However, it’s essential to understand the high-interest rates and fees associated with this service and to use it only when necessary.
Applying for a DBS Cash Advance
If you are a DBS customer in Singapore, you may be eligible to apply for a cash advance. This feature allows you to withdraw cash from your credit card, up to your available credit limit. Here’s what you need to know about applying for a DBS cash advance.
Eligibility and Requirements
To be eligible for a DBS cash advance, you must be a DBS customer with a credit card. You must also have an available credit limit on your card. Additionally, you must be at least 21 years old and have a valid NRIC or passport.
The Application Process
The application process for a DBS cash advance is straightforward. Here are the steps you need to follow:
- Log in to your DBS iBanking account or visit a DBS/POSB branch.
- Select the credit card you want to use for the cash advance.
- Choose the amount of cash you want to withdraw, up to your available credit limit.
- Review the terms and conditions and the fees associated with the cash advance.
- Submit your application.
Once you have submitted your application, you will receive an approval-in-principle within minutes. If your application is approved, the funds will be disbursed to your designated account within 3-5 business days.
It’s important to note that cash advances come with high fees and interest rates. DBS Singapore charges a cash advance fee of 8% on the amount withdrawn per transaction, subject to a minimum of $15 per transaction. The finance charge imposed on cash advance is 28.5% p.a. on the amount withdrawn and is chargeable on a daily basis from the withdrawal date until full payment is made. Therefore, it’s recommended that you only use cash advances as a last resort and consider other options first.
Managing Your Cash Advance
Repayment Strategies
Managing your cash advance is essential to maintaining a healthy financial standing. Once you have withdrawn cash using your DBS credit card or DBS Cashline, you will be charged a transaction fee of 8% or S$15, whichever is greater. In addition, a finance charge of effective interest rate 28% p.a. on the amount withdrawn is chargeable on a daily basis from the date of withdrawal until receipt of full payment.
To avoid paying unnecessary interest charges, it is important to repay your cash advance as soon as possible. You can do this by making a payment towards your outstanding balance on or before the billing cycle due date. By paying the minimum charge, you can avoid late payment charges and keep your account in good standing.
Another repayment strategy is to pay more than the minimum charge. This will help you reduce your outstanding balance and the amount of interest you are charged. You can also consider using your savings to repay your cash advance, especially if you have a high-interest savings account.
Avoiding Common Pitfalls
One common pitfall when it comes to cash advances is withdrawing more than you can afford to repay. It is important to only withdraw what you need and can afford to repay. This will help you avoid falling into debt and damaging your credit score.
Another pitfall is not paying your cash advance on time. Late payments can result in additional charges and negatively impact your credit score. To avoid this, it is important to make payments on time and in full.
In conclusion, managing your cash advance requires careful planning and discipline. By following these repayment strategies and avoiding common pitfalls, you can maintain a healthy financial standing and avoid unnecessary charges. Remember to only withdraw what you need and can afford to repay, and always make payments on time and in full.
Fees and Charges
Understanding the Fees
If you’re considering a cash advance from DBS Singapore, it’s important to understand the fees and charges associated with this type of transaction. First, you’ll be charged a cash advance fee of 8% on the amount withdrawn per transaction, subject to a minimum of S$15 per transaction. In addition, there is a finance charge imposed on cash advances at an interest rate of 28.5% p.a. on the amount withdrawn, which is chargeable on a daily basis from the withdrawal date until full payment is received.
It’s worth noting that the minimum finance charge applicable on your card account is S$2.50. This means that even if you only withdraw a small amount, you’ll still be charged this minimum fee.
Calculating Your Costs
To get a better idea of the costs associated with a cash advance from DBS Singapore, let’s look at an example. If you withdraw S$1,000, you’ll be charged a cash advance fee of S$80 (8% of S$1,000). In addition, the finance charge imposed on this amount is S$7.67 per day (28.5% p.a. divided by 365 days), which means that if you take 10 days to repay the full amount, you’ll be charged an additional S$76.70 in finance charges.
Overall, if you take 10 days to repay a S$1,000 cash advance, you’ll be charged a total of S$156.70 (S$80 cash advance fee + S$76.70 finance charge).
It’s important to keep in mind that these fees and charges can add up quickly, especially if you’re not able to repay the full amount quickly. As such, it’s recommended that you only use a cash advance as a last resort and that you repay the full amount as soon as possible to avoid incurring additional fees.
In summary, if you’re considering a cash advance from DBS Singapore, be sure to carefully review the fees and charges associated with this type of transaction. By understanding the costs involved, you can make an informed decision and avoid any surprises down the line.
Getting the Most from Your DBS Cash Advance
If you are in need of quick funds for unexpected expenses or emergencies, a DBS Cash Advance can help you get the cash you need immediately. Here are some tips to help you make the most of your cash advance:
Maximising Benefits
When you use your DBS Cash Advance, you can enjoy several benefits. Firstly, you can withdraw cash up to your available credit card limit. Secondly, there is no minimum cash advance withdrawal amount, so you can withdraw the exact amount you need. Finally, you can withdraw cash from any DBS/POSB ATM in Singapore.
To maximise the benefits of your cash advance, it is important to use it wisely. Only withdraw the amount you need and can afford to repay. Remember, interest is accrued daily at 22.9% p.a., so the longer you take to repay your cash advance, the more interest you will accumulate.
When to Use a Cash Advance
A cash advance should only be used as a last resort. It is not a long-term solution for your financial needs and should only be used for short-term borrowing. For example, if you need to pay for unexpected car repairs or medical bills, a cash advance can help you get the funds you need immediately.
However, if you need funds for a longer period of time, it is better to consider other options such as a personal loan or a credit line. These options offer lower interest rates and longer repayment periods, making them more suitable for long-term borrowing.
In conclusion, a DBS Cash Advance can be a useful tool for short-term borrowing. By using it wisely and only when necessary, you can make the most of its benefits and avoid accumulating unnecessary debt.
Frequently Asked Questions
What are the eligibility criteria for obtaining a cash advance with DBS?
To obtain a cash advance with DBS, you must have a DBS credit card or a DBS Cashline account. Additionally, you must have available credit or funds in your Cashline account.
How can I find out the fees associated with a cash advance from DBS?
The fees associated with a cash advance from DBS can be found on the DBS website or by contacting DBS customer service. Typically, there is a cash advance fee of 8% on the amount withdrawn per transaction, subject to a minimum of S$15 per transaction, and a finance charge of 28.5% p.a. on the amount withdrawn.
Is there a possibility to get a waiver for my DBS cash advance fee?
Waivers for cash advance fees are not typically available from DBS. However, if you have a good credit history with DBS, you may be able to negotiate with them for a waiver or reduction of fees.
What’s the maximum amount I can advance from my DBS credit line?
The maximum amount you can advance from your DBS credit line will depend on your credit limit and available credit. To find out your available credit, you can check your DBS credit card or Cashline account balance.
How can I use the DBS cash advance calculator to estimate my costs?
The DBS cash advance calculator can be found on the DBS website. To use it, input the amount you wish to advance and the number of months you will take to repay the advance. The calculator will then estimate your monthly repayment amount and the total amount of interest you will pay.
What are the steps to withdraw cash using my DBS credit card?
To withdraw cash using your DBS credit card, you can visit any DBS or POSB ATM and follow the instructions on the screen. Alternatively, you can use your credit card at any merchant who accepts credit card cash advances. Keep in mind that cash advances are an expensive way to borrow money and should only be used in emergencies.