If you’re looking to build or rebuild your credit history in Singapore, a secured credit card from United Overseas Bank (UOB) may be a good option for you. A secured credit card requires a cash deposit as collateral, which reduces the risk for the credit card issuer and can increase your chances of approval, even if you have a poor credit score.
UOB is one of the leading issuers of secured credit cards in Singapore, offering a range of options to suit different needs and budgets. With a UOB secured credit card, you can enjoy many of the same benefits as a traditional credit card, such as cashback rewards, discounts, and exclusive perks. Plus, by using your card responsibly and making timely payments, you can improve your credit score over time.
To help you get started, we’ve put together this guide on UOB secured credit cards in Singapore. We’ll cover everything from understanding how secured credit cards work to applying for a UOB secured credit card and managing your card effectively. We’ll also highlight some of the additional features and benefits of UOB credit cards, as well as answer some frequently asked questions.
Understanding UOB Secured Credit Cards
If you’re looking to build or rebuild your credit score, UOB Secured Credit Cards might be the perfect solution for you. Here’s what you need to know about them.
What is a Secured Credit Card?
A secured credit card requires a collateral, often in the form of a fixed deposit, to be pledged as security against the credit limit. This collateral acts as a safety net for the bank, and in case you are unable to pay your credit card bills, the bank can use the collateral to recover the outstanding amount.
UOB Secured Credit Cards work in the same way. You’ll need to pledge a fixed deposit as collateral, which will determine your credit limit. The amount of the fixed deposit will be equivalent to your credit limit. For example, if you pledge a fixed deposit of $10,000, your credit limit will also be $10,000.
Benefits of UOB Secured Credit Cards
One of the main benefits of UOB Secured Credit Cards is that they can help you improve your credit score. As long as you make timely payments and keep your credit utilization low, your credit score will gradually improve over time.
Another benefit is that UOB Secured Credit Cards offer the same perks and privileges as regular credit cards. You can earn rewards points, cashback, and other benefits when you use your card for purchases.
Moreover, UOB Secured Credit Cards offer a lower interest rate compared to regular credit cards. This is because the bank has a lower risk of default since you’ve pledged a collateral.
Finally, approval for UOB Secured Credit Cards is relatively easy. Since you’re pledging a collateral, the bank doesn’t have to check your credit score or income. As long as you have the fixed deposit, you’re likely to get approved.
In summary, UOB Secured Credit Cards can be a great option for those looking to build or rebuild their credit score. By pledging a collateral, you’ll have access to the same perks and privileges as regular credit cards, while also enjoying a lower interest rate.
Applying for a UOB Secured Credit Card
If you have bad credit or no credit history, a secured credit card from UOB could be a great option for you. With a secured credit card, you need to make a deposit upfront, which serves as collateral. This deposit is usually equal to your credit limit, and it reduces the risk for the bank, which is why they are more likely to approve your application.
Eligibility and Requirements
To be eligible for a UOB secured credit card, you must be at least 21 years old and have a fixed deposit account with UOB. The minimum deposit amount is $10,000, and you will need to keep this deposit for the duration of your credit card usage. If you are a foreigner, you will need to have a valid work permit and earn at least $30,000 per year.
The Application Process
The application process for a UOB secured credit card is quite straightforward. You can apply online through the UOB website or visit a UOB branch. If you are an existing UOB customer, you can apply through your UOB Personal Internet Banking or UOB TMRW account.
When you apply online, you will need to provide some basic information, such as your name, NRIC/FIN, and contact details. You will also need to indicate the amount of your fixed deposit and the desired credit limit. Once you submit your application, you will receive an instant decision.
Documents Needed for Application
To apply for a UOB secured credit card, you will need to provide the following documents:
- A copy of your NRIC/FIN
- A copy of your work permit (if you are a foreigner)
- A copy of your fixed deposit certificate
- Proof of income (for foreigners)
If you apply online, you can use MyInfo and SingPass authentication to retrieve some of your personal information, such as your name and NRIC/FIN, which will speed up the application process.
Overall, a UOB secured credit card can be a great way to rebuild your credit score and gain access to credit. Just make sure you understand the terms and conditions of the card, including the interest rate and fees, before you apply.
Maximising Rewards and Savings
When it comes to maximising your rewards and savings, UOB has got you covered. With their secured credit card, you can earn miles and cashback, enjoy exclusive dining and shopping privileges, and utilise UOB’s unique Uni$ programme.
Earning Miles and Cashback
With UOB’s secured credit card, you can earn miles and cashback on your everyday purchases. Earn up to 3 miles per $1 spent on your preferred category and up to 1.5 miles per $1 spent on all other categories. Additionally, enjoy up to 10% cashback on your daily essentials such as groceries, petrol, and utilities.