If you’re a young adult in Singapore, getting your first credit card can be a daunting experience. With so many options available, it’s hard to know where to start. However, having a credit card can be a great way to build your credit history, earn rewards and cashback, and enjoy other benefits. In this article, we’ll take a look at some of the best credit cards for young adults in Singapore.
When choosing your first credit card, it’s important to consider your spending habits and lifestyle. Do you spend a lot on dining and entertainment? Are you a frequent traveller? Do you prefer to shop online or in-store? By understanding your spending habits, you can choose a credit card that offers rewards and benefits that suit you.
We’ve researched and compiled a list of the top credit cards for young adults in Singapore. We’ll review the benefits of each card and help you choose the one that’s right for you. Additionally, we’ll provide tips on how to maximise your rewards and savings, understand fees and charges, and practice smart credit card habits. By the end of this article, you’ll be equipped with the knowledge you need to make an informed decision about your first credit card.
Key Takeaways
- Choosing the right credit card is important and should be based on your spending habits and lifestyle.
- There are many credit cards available for young adults in Singapore, each with their own unique benefits and rewards.
- Maximising your rewards and savings, understanding fees and charges, and practicing smart credit card habits can help you get the most out of your credit card.
Choosing Your First Credit Card
When it comes to choosing your first credit card, it’s important to understand the basics of credit cards and evaluate the features that will benefit you the most. Here are some things to consider:
Understanding Credit Cards
A credit card is a financial tool that allows you to borrow money from a bank or financial institution to make purchases. You can use your credit card to pay for goods and services, and you’ll be required to pay back the amount you borrowed, plus interest.
It’s important to understand that using a credit card responsibly can help you build a good credit score, which is important for future financial endeavors such as getting a loan or mortgage. On the other hand, not using a credit card responsibly can negatively impact your credit score.
Evaluating Credit Card Features
When evaluating credit card features, consider what benefits you the most. For example, if you’re a frequent traveler, a credit card with travel rewards may be a good option. If you’re looking to save money, a credit card with cashback rewards may be more beneficial.
Other features to consider include the annual fee, interest rate, and credit limit. Make sure to read the terms and conditions of the credit card carefully to understand what you’re signing up for.
Income and Age Considerations
To apply for a credit card in Singapore, you must be at least 21 years old. However, some credit cards may have a minimum age requirement of 18 years old.
Additionally, your income will play a factor in determining your credit limit and eligibility for certain credit cards. Make sure to provide accurate information about your income when applying for a credit card.
It’s important to note that the Monetary Authority of Singapore (MAS) has regulations in place to ensure responsible lending practices by financial institutions. This means that credit card applications will be evaluated to ensure that the borrower can afford to repay the amount borrowed.
When choosing your first credit card, take the time to evaluate your options and find a card that suits your needs and financial situation. Remember to use your credit card responsibly to build a good credit score and avoid financial troubles.
Top Credit Cards for Young Adults in Singapore
When it comes to finding the best credit cards for young adults in Singapore, there are several options to choose from. Here are some of the top credit cards that you might want to consider:
DBS Live Fresh Student Card
The DBS Live Fresh Student Card is a great option for students who are looking for a credit card that offers cashback on their daily spending. With this card, you can earn up to 5% cashback on online and contactless transactions, as well as on dining and entertainment expenses. Additionally, you can enjoy exclusive discounts and deals on various lifestyle and entertainment options.
CIMB AWSM Card
The CIMB AWSM Card is another great option for young adults who are looking for a credit card that offers cashback on their daily spending. With this card, you can earn up to 1% cashback on all retail spend, as well as up to 2% cashback on dining and entertainment expenses. Additionally, you can enjoy exclusive deals and discounts on various lifestyle and entertainment options.
OCBC FRANK Card
The OCBC FRANK Card is a popular choice among young adults who are looking for a credit card that offers cashback on their daily spending. With this card, you can enjoy up to 6% cashback on online purchases, as well as up to 5% cashback on entertainment and dining expenses. Additionally, you can enjoy exclusive deals and discounts on various lifestyle and entertainment options.
Maybank eVibes Card
The Maybank eVibes Card is designed specifically for young adults who are starting out on their financial journey. With this card, you can enjoy up to 8% cashback on all online and contactless transactions, as well as up to 1% cashback on all other retail spend. Additionally, you can enjoy exclusive deals and discounts on various lifestyle and entertainment options.
Overall, these credit cards offer great benefits and rewards for young adults in Singapore who are looking to make the most of their spending. Whether you are a student or a young professional, these credit cards can help you save money and enjoy exclusive deals and discounts on various lifestyle and entertainment options. So, why not consider applying for one today?
Maximising Rewards and Savings
When choosing a credit card as a young adult, it’s important to consider how you can maximise your rewards and savings. Here are some of the best options for cashback, miles, and lifestyle benefits.
Cashback and Rebates
If you’re looking for a credit card that offers cashback or rebates, the HSBC Revolution Credit Card is a great option. You can earn up to 5% cashback on dining, entertainment, and online purchases, and up to 2% cashback on all other spending. Plus, there’s no minimum spend required to enjoy these benefits.
Another option is the Citi Cash Back Card, which offers up to 8% cashback on dining, groceries, and petrol. You can also earn up to 6% cashback on your online shopping and up to 0.25% cashback on all other spending.
Miles and Travel Perks
If you’re a frequent traveller, consider getting a credit card that offers miles and travel perks. The American Express Singapore Airlines KrisFlyer Credit Card is a great option for earning KrisFlyer miles, which can be redeemed for flights, upgrades, and other travel-related expenses. You can earn up to 1.1 KrisFlyer miles for every $1 spent, and enjoy perks like complimentary travel insurance and airport lounge access.
Another option is the Citi PremierMiles Card, which offers up to 1.2 Citi Miles for every $1 spent locally, and up to 2 Citi Miles for every $1 spent overseas. You can redeem your miles for flights, hotel stays, and other travel-related expenses, and enjoy perks like complimentary travel insurance and airport lounge access.
Lifestyle and Entertainment Benefits
If you enjoy spending on lifestyle and entertainment expenses, consider getting a credit card that offers benefits in these areas. The OCBC FRANK Credit Card is a great option, offering up to 6% cashback on online shopping, up to 5% cashback on entertainment expenses, and up to 3% cashback on groceries. You can also customise your card design to suit your personality.
Another option is the UOB YOLO Credit Card, which offers up to 8% cashback on dining, entertainment, and online shopping. You can also enjoy perks like free Grab rides and discounts on travel and lifestyle expenses.
By choosing a credit card that offers rewards, cashback, miles, or lifestyle benefits, you can maximise your savings and enjoy more of the things you love.
Understanding Fees and Charges
As a young adult, it is important to understand the fees and charges associated with credit cards. This will help you make informed decisions and avoid unnecessary expenses.
Annual Fees and Waivers
One of the most important fees to consider is the annual fee. Some credit cards have no annual fee, while others charge a fee that can range from £30 to £500. If you’re just starting out, you may want to consider a credit card with no annual fee to avoid unnecessary expenses.
However, some credit cards offer benefits that can outweigh the annual fee, such as cashback or rewards points. It’s important to read the terms and conditions carefully to understand what benefits are offered and whether they are worth the annual fee.
Many credit cards also offer fee waivers for the first year or for customers who meet certain spending requirements. Be sure to check if you are eligible for a fee waiver before signing up for a credit card.
Foreign Transaction Fees
If you plan to use your credit card for overseas transactions, it’s important to be aware of foreign transaction fees. These fees can range from 2% to 5% of the transaction amount and can add up quickly.
Fortunately, some credit cards offer no foreign transaction fees, making them a good choice for frequent travellers. Be sure to check the terms and conditions carefully to understand whether foreign transaction fees apply and how much they are.
In summary, understanding the fees and charges associated with credit cards is important for young adults. Consider the annual fee and whether it is worth the benefits offered, and be aware of foreign transaction fees if you plan to use your credit card overseas. By being informed and making smart choices, you can avoid unnecessary expenses and make the most of your credit card.
Smart Credit Card Practices
Using a credit card can be a great way to manage your finances and earn rewards, but it’s important to use it responsibly. Here are some smart credit card practices to keep in mind:
Managing Spending Habits
One of the biggest advantages of using a credit card is that it can help you track your spending. However, it’s important to make sure you’re not overspending. Create a budget and stick to it, and use your credit card only for purchases you can afford to pay back.
When using your credit card, try to limit your spending to essential items, such as groceries, dining, petrol, and telco bills. Avoid using your credit card for loans or other non-essential purchases, as this can lead to debt and overspending.
Avoiding Debt and Overspending
One of the biggest dangers of using a credit card is overspending and accumulating debt. To avoid this, make sure you pay your credit card bill on time and in full each month. This will help you avoid interest charges and late fees, and also help you build a good credit score.
If you do find yourself in debt, don’t panic. Contact your credit card company and work out a repayment plan. You may also want to consider a balance transfer to a card with a lower interest rate.
Credit Card Benefits
Many credit cards offer rewards and benefits, such as cashback, air miles, and discounts on purchases. However, it’s important to read the terms and conditions carefully and make sure you understand how to earn and redeem these rewards.
When choosing a credit card, look for one that offers benefits that are relevant to your lifestyle and spending habits. For example, if you frequently dine out, look for a card that offers dining discounts or cashback on restaurant purchases.
Remember, using a credit card can be a great way to manage your finances and earn rewards, but it’s important to use it responsibly. By following these smart credit card practices, you can avoid debt and overspending and enjoy the benefits of your credit card.
Frequently Asked Questions
What’s the most suitable credit card for university students in Singapore?
If you’re a university student in Singapore, you may want to consider credit cards that offer cashback rewards for everyday spending such as dining, groceries, and transport. You can also look for cards that have no annual fees or low minimum income requirements. Some popular options include the DBS Live Fresh Student Card, the OCBC Frank Card, and the UOB YOLO Card.
How can a young adult obtain their first credit card in Singapore?
To obtain your first credit card in Singapore, you must be at least 21 years old and have a minimum income of $30,000 per year. You can apply for a credit card online or in-person at a bank branch. You’ll need to provide proof of income, identification, and other personal information.
Which credit cards offer the best rewards for young adults in Singapore?
Credit cards that offer rewards for dining, shopping, and travel are popular among young adults in Singapore. Some of the best options include the Citi Cashback Card, the HSBC Revolution Card, and the American Express True Cashback Card. These cards offer cashback rewards, air miles, and other perks that can help you save money.
Are there any credit cards tailored specifically for young professionals starting out in Singapore?
Yes, there are credit cards tailored specifically for young professionals starting out in Singapore. These cards may offer cashback rewards, air miles, or other perks that can help you save money. Some popular options include the OCBC 365 Card, the Standard Chartered Unlimited Card, and the Maybank Family & Friends Card.
What should be considered when choosing a first credit card as a young adult in Singapore?
When choosing your first credit card as a young adult in Singapore, you should consider the rewards offered, the annual fees, the interest rates, and the minimum income requirements. You should also consider your spending habits and choose a card that offers rewards for the things you spend money on most often.
How does one build a credit score with a starter credit card in Singapore?
To build a credit score with a starter credit card in Singapore, you should use the card regularly and make timely payments. You should also keep your credit utilization low and avoid carrying a balance from month to month. Over time, your credit score will improve as you establish a positive credit history.