Should You Spend On Your Credit Card Or Debit Card ?

Credit cards offer you fast access to cash that is not yours and this is similar to borrowing money. Only that you don’t have to go through the personal loan application process used when taking out a personal loan from moneylenders. Also, debit cards only help you avoid the long queues at the ATM.

Actually, you are using your cash, with some occasional perks. With this in mind, which of the 2 would you rather use for your spending?

Let’s take a look at the two cards and what each has to offer you.

Eligibility Criteria

You will require to meet specific criteria when getting credit cards. In Singapore, an applicant is required to have a monthly salary of about $2,000 to get a credit card. Even then, past conditions, like bankruptcy, can disqualify you from getting a card. But talk to your moneylender to confirm that you meet the requirements.

What about when getting a debit card?

For you to qualify for a debit card, you only need to have a bank account. Actually, most banks provide ATM cards which act like debit cards, hence one is given automatically. This is simple since you only go to the tellers and request for one; it’s possible to have one on the spot.

Purchasing Power

Credit cards allow you to make purchases until when you reach the credit limit. This limit differs depending on your salary, credit history, and even promotional gimmickry. Given that your credit standing is good, your limit will be at least double your salary. Many credit cards offer higher than this. You can also write your moneylender asking for a higher limit, which they might authorize.

Debit cards, shift between preventing your purchase power, or not have an effect. There is a daily limit for the transactions allowable using the card, usually between $2000 to $5000. When you hold more in your bank account, you may not use it. When your balance is less than this, a debit card will not impact your buying power.


Debit card immediately approves transactions, while a credit card offers you the chance to block payment. Meaning that credit cards are ideal if you got scammed, or bought products that are defective.

What can you do in such a situation? You only need to call your moneylender to block that payment. But with debit cards, you will have directly put the funds in the seller’s pocket. You might need a police report to get it back.

Credit cards have liability limits which mean when someone makes a purchase using your lost Visa, you will not pay the entire amount. You will only pay for the liability. Debit cards will offer protection through their set daily limits. With this in mind which card will work best for you?

Discounts and Rewards

Debit and credit cards both offer discounts and rewards. But for the bigger part, the debit card will not afford you more freebies and discounts than what credit cards can. The rewards offered on debit cards are mostly in the form of small payment rebates (frequently under 1%). You might also get fidgety small bonuses, for instance, VIP parking slot at specified malls, or get a dollar discount on your next burger.

On the flip side, Credit cards will get you some rewards points (this can be redeemed for a wide range of things), cash back, frequent flyer miles, dining privileges, entertainment, among others. Keeping this in mind, make sure that your way the positives and negatives that each card will afford you. Consider getting a card that helps you save.


Managing without using a credit or debit card compares to cycling to work: outwardly you can boast of how healthy this keeps you, while inwardly you are cursing for the inconvenience.

What can you do when you are considering whether to get a debit or credit card? So what if you are fed up of being unable to make purchases online. Or when you have to borrow from someone a card for downloading some apps, even for the free ones.

What if you are done making frequent trips to an ATM. Even in such a circumstance, of the two( credit and debit cards), which plastic money should you consider? Be sure to find out more about the two cards forms to help you make informed decisions.

Interest Rates and Fees

Most debit cards do not have any fees. So, does that mean that you will not incur any charges and interests on your debit card? There are a few debit cards that will charge you transaction fees, particularly when you use them while in a foreign country. During the application process for your card, you may set up an overdraft option. This means that it starts drawing funds from another account at after your current gets empty.

Of course, this will come with a specific fee accompanying such transactions, this is based on your bank. What about credit cards, what charges and interests do they attract? These have more charges in fees, starting with annual fees to late payment costs. This cards will charge interest.


It just happens that some people cannot be trusted in their use of credit cards. For instance, when you are a parent, giving your teen a credit card can be a more dangerous move.

How can you teach your child how to spend wisely? Is a debit card good for them? How can you ensure that you offer them an allowance and avoid them bankrupting you?

Getting your teen a debit card might be the way to go. And you will not have to worry about them overspending. Provided you have some measure put in place like a limit of the amount they can borrow. Of course, once the amount in the account is exhausted their purchasing power is taken away. Use a debit card when you cannot check your spending.

The Bottom Line

Those people who are able to check their spending will make the most of the deals offered on credit cards for most of their purchases. To ensure the less disciplined spenders are within their means, a debit card will do the trick. It will also protect the economical ones from fees too.

Line Of Credit: What You Need To Know About It

In our daily life, there are some terminologies that you will encounter that might not be that significant to you. Yet, they will have an impact in the way you interpret them. Let’s take for instance the word “line of credit”. You will come across such a terminology when talking about debts, loans, money lending, etc. This word may already seem familiar to you, however, what really is known about it.

The credit line is, in reality, an arrangement made between you the borrower and your licensed moneylender as your loan provider. This arrangement will define the maximum existing balance that your lender is prepared to have you maintain. Meaning that a borrower should never go beyond the set maximum balance. They, however, are free to draw down from the line of credit at any time they wish to do so. This will sound rather easy for many borrowers.

One major benefit that borrowers get to enjoy from the line of credit is, different from any normal personal loan, the rate of interest attached with it is not generally charged on the remaining line of credit. The line of credit will also offer more flexibility compared to the regular personal loan. This is so in that you can access a loan on the credit line at any moment you feel the need for some extra funds. Look for the money lender singapore.

The process of on the line of credit is fairly easy in approach. To start with, once you opt to borrow using a line of credit. You will be required to pay only the rates of interest only on the sum that you have actually borrowed. This means, that no matter the available credit line balance or even the whole amount you have at your disposal to borrow. You will only need to consider the actual credit amount you have taken out against the line of credit.

For instance, when the agreed sum between you and your licensed moneylender totals $20,000. Then it means you are advantaged to borrow an amount equal to or as less. Depending on the amount you want but up to a specified amount limit. Let’s say you have incurred $5,000 line of credit, then the amount you will be paying is only interest charged on that credit amount. Additionally, you will still be able to access the accessible $15, 000 that you can borrow.

Also based on the agreement made, the line of credit can come into 2 distinct forms: unsecured and secured. The secured credit line is actually guaranteed using property or an asset. These items serve as a guarantee for the loan amount you have borrowed. Thus the asset and property can promptly be taken over by your moneylender. But only when a borrower fails to make his repayments.

On the other hand, unsecured credit lines, just as with credit cards, do not require any guarantee by use of any physical assets. Since no collateral is needed for the loan amount borrowed.

Eligibility For The Line Of Credit

You need to be aged 21 years and above

Singaporeans and Singapore Residents: You need to have yearly earnings of S$20,000 and more

For Foreigner: You will require having yearly earnings of S$45,000 and more

Benefits of the line of credit

You can borrow to a total of 6x your monthly salary

The maximum credit limit accessible totals 6x your salary for each month.

It is an easy way to manage an account

You can access your money through Mobile and online banking, ATM, and cheque.

You only get to pay interest on the amount you use only

You only will pay minimum rates of interest on the existing amount at month-end (the interest are incurred on daily basis).

The minimum repayments for each month are affordable

The minimum payments are as low as 3 percent or S$50 each month, depending on the one that is higher.

These Are Some Examples Of Line Of Credit:

Demand Line of Credit

This is another form of a line of credit that, from its name, is only applicable upon the demand. This credit is mostly used to finance margin accounts. It is also popular with personal loans that do not have a fixed term of maturity. The demand lines of credit make it possible for you to take out a specific sum of money each day or based on-demand.

Credit Card Lines Of Credit

By itself, a credit card is a general expression of what lines of credit are all about. This is a revolving loan which allows a borrower to have access to cash up to a set and agreed upon maximum limit.

With this, you can acquire certain loan amounts to the line of credit. Then as soon as you pay for the credit line, you still can use the card again and at anytime. This provided that you avoid maxing out the set limit on your credit card.

Overdraft Line of Credit

This is a form of credit line that is generally accessible by a borrower using their checking account. The overdraft line of credit can help a borrower take out a small loan. This often when you have used more money than is in your account.

Export packing line of credit

This line of credit applies when provided a borrowing facility which will assist exporters they can use it to finance the marketing costs of their trade good by packing as well as transporting the goods ahead of their getting shipped.

Through knowing these important insights will actually impact your understanding of line of credit. As well as what they are all about. Even then you will need to consider several main elements which pertain to it. This will ensure that in future, it will not be hard for you to understand what the meaning behind it is.


The line of credit arrangement defines the maximum existing balance that a lender can let you access without you maxing it. Different from a normal personal loan, the rates attached to a line of credit are generally charged on the amount you use from your line of credit. Importantly only use the amount you need and ensure you repay it in full.

Why You Need To Keep An Eye On Your Credit Score

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When your credit score is lower than you would like it to be, chances are such a score is as a result of some little financial mistake or even an oversight you may have made some time ago.

Not all people that have bad credit have a low credit score brought about by something they did. Though at times, other people’s unlawful activity may affect your credit rating. It is therefore advisable that you protect your credit rating to help prevent becoming a victim of fraudulent acts.

Any unexplained adjustments to your credit score may be signalling fraud, however, regular checks on your credit reports will help you prevent financial losses. Through the countless money scams taking place these days, it is better for you to be safe than be sorry. Being a victim of financial scam will not only cause immediate problems like a monetary loss, it could affect your credit rating as well, as a result creating long-lasting financial problems for you.

There are some tips that will assist in keeping you and your credit rating safe from online as well as financial predators:

Why Credit Rating Is Important

Once you have applied for an unsecured loan facility (a personal loan or a credit card) from the banks or licensed money lender singapore, always ensure to check that an update is carried out on your credit record by your money lender.

Since your credit report holds all sorts of helpful and important information – like the history of the missed payments, or even the likelihood of you being overleveraged, and certainly, the credit score. It plays a key part in determining if you will have your loan request approved for your moneylender personal loan or maybe the credit card you want.

Even if you do not want a loan at this time, a time may come when you will need some urgent cash, for example, to pay for wedding expenses, or to deal with medical emergencies. When it comes to credit cards, you could change your mind as soon as you realize that you will be saving a lot of money a year.

In addition, there are some specific professions (particularly in the finance industry or public service) that require their candidates to hold good credit scores and history. As a result, there are numerous reasons why you should ensure your credit history is in a good status.

However, there is one more way in which a person’s credit score is essential. And this is in most situations often disregarded. Since the data in your credit history changes every time there is a personal loan or a credit card loan request made using your names, the credit rating can also be used to alert you whenever you have become a victim of financial fraud or even other illegal activities.

What You Could Do To Protect Your Credit Rating

A malicious person or a fraudster is only able to affect your credit history when they can access it, generally through stealing your identity. For that reason, you need to always exercise good habits to help safeguard yourself.

Ensure that you always keep safe sensitive information like personal particulars, both online and offline. Make certain that you dispose of documents such as bank statements as well as bills appropriately (you can use a shredder when you would like to be double sure) and never share your personal data through unsafe channels (like during phone calls that are unverified, or over the net and also social media).

Always keep your account numbers as well as PIN numbers safe. Ensure you cover your PIN and account numbers every time you are using debit at a store. Do decline to give your PIN to anyone. Also, avoid noting down your account and PIN numbers simply because you do not know when such information might get to malicious people.

When applications for credit cards are sent to you in the mail, and they are “pre-approved”, tear up these applications and the enclosed letters before you discard them. This isn’t being paranoid. It’s taking caution since identity thieves at times go through garbage as they search hoping to find these forms. This way they will fill them out and thus steal your identity.

Do not buy items online from companies you don’t trust or even from a corporation that doesn’t have an encryption technology plus an excellent privacy policy

As earlier mentioned that your credit history can be an additional tool you could use to protect you against identity theft plus all the consequences that will arise from it. For instance, when you notice that your credit score has been downgraded for no apparent reason or when you notice that there are a number of requests for your credit record all of a sudden, or you might get marked for late repayment when you don’t hold any debt, then you are sure to know that something is amiss.

This is what you should do: confirm your credit history regularly for any inconsistencies, and make sure to report any mistrustful activities immediately. When you dispute any unwanted financial actions as soon as you notice them, you stand a chance of bringing to an end those illegal acts.

How The Singaporean Credit Bureau Can Assist In Keeping You Safe

You don’t have to fanatically check your credit history each week. But there lies the setback – it may be easy to forget checking your reports if we were the ones to do so ourselves. Life gets busy or even the task just slips our mind. It is for this reasons that the Credit Bureau (CBS) offers a monitoring service on your credit report. This service ensures that your records are untarnished by no one else and prevent identity theft.

  • Each time a lender updates a transaction on your credit history, you receive an email alert to this regard. It also alerts you when a loan request is made using your name.
  • By safeguarding your credit information and personal finance it makes it easy for you to access all your records from home, thus putting your mind at ease.
  • It ensures the uploaded information onto your file is correct thus managing your credit reputation


What Is A Debt Consolidation Plan And How Does It Work In Singapore


The guide gives an explanation on everything you need to be familiar with regarding debt consolidation in Singapore. The guide further gives how the debt consolidation loan Singapore will help you repay multiple unsecured loan debts.

It is challenging for an individual to keep up with behind schedule payments on a particular credit card. It even gets worse when you find yourself deeper in debt with a number of creditors. A borrower will have very many payments and due dates to keep up with and the continuous constant reminder about the pending balance simply add further to the pressure. The further behind you are in the payments the larger your loan debt becomes.

Under such not so easy conditions, Singaporean debt consolidation plans will be of assistance for a borrower to getting the much-needed solution.

What A Debt Consolidation Plan Is

A debt consolidation plan is a debt management tool which was announced on the 17th January 2017 by the Association of Banks in Singapore (ABS). This plan was designed purposely for Permanent residents in Singapore and Singaporeans who were juggling a number of high-interest rate unsecured loan debts. These borrowers were also having difficulties meeting the monthly payments.

As the name suggests, a Debt Consolidation Plan allows a borrower to put together all credit cards debts they have and personal loans into one loan which comes with lower rates of interest. The new consolidated loan is afterwards to be repaid in regular monthly contributions. The debt consolidation loan Singapore, like a personal monthly instalment loan, runs for a time of up to ten years.

Debt Consolidation Plan is intended for unsecured loan facilities like personal loans, credit lines, and credit cards. On the other hand, there are specific types of unsecured loans that do not qualify to be consolidated. These loan types include renovation loans, education loans, credit services for business ventures and joint accounts.

How A Debt Consolidation Plan Works

Let’s use the case of Luke, who has a salary of S$4,000 and presently has an outstanding loan balance of S$36,000 between 3 credit cards and one personal loan all from different banking institutions.


Luke is hardly able to make the minimum repayments, which totals S$1,250 each month- this is almost half his earning for each month.

At the given rate, Luke is paying about S$8,549 in interest fees alone each year. Since the interest on the credit card loan compounds onto the outstanding balance, he is going to take a rather long time till he repays the debts completely.

A DCP will merge all the unsecured loans into one loan. In effect, the bank offering the DCP will be buying out Luke’s remaining balances and fees and other charges payable from the loan and credit cards. This is regardless whether they are from different banks. The accounts will thereof be closed or suspended temporarily.

Luke will now need to make payments to the bank offering the DCP until the debt is fully repaid. Assuming Luke is able to access a DCP from HSBC payable in over 8 years, and an interest of 10% per year. Below is how much he will be contributing each month, compared to the current commitments.


Through a DCP, Luke will only need to pay S$300 each month for his consolidated debts. When he can make monthly payments on time, he will be free from all the loans in 8 years and be able to save thousands of dollars based on the interest rates applied.

How Much You Can Borrow From The Debt Consolidation Plan

In general, banks allow an individual to borrow a Debt Consolidation Plan that is equal to the sum total of the outstanding balance they owe. This includes any fees and charges that the debt loan may have accrued as shown in the borrower’s accounts statement.

There are situations when your accepted DCP loan amount is not enough to cover all your outstanding debt balances. When this happens, you will then be responsible for the reimbursement of the pending balance directly to the institution you took the loan from.

The first Debt Consolidation Plan you get will make available an allowance of extra 5% on top of the sum total of Debt Consolidation Plan. This will contribute positively to your being able to handle incidental charges. The charges may have been incurred from the moment your Debt Consolidation Plan was authorized until the moment you repay back the Debt Consolidation Plan loan amount. A 5% allowance is provided and paid directly to the institutions you have taken loans from, and it is not deposited into your current or savings account. Should there be a sum of money left over from the allowance of 5%, the surplus amount is then credited or refunded back to you.

A number of financial institutions offer further complimentary services aimed at helping you make payments regardless of unforeseen events. For example, the Debt Consolidation Plan from Citibank provides free insurance which is intended to guarantee the repayment of the outstanding debt loan amounting to S$160,000. The insurance is applicable should the borrower suffer complete permanent disablement or an accidental death. The insurance will also come in handy in covering the minimum repayment amount owed each month for a period of up to six months. This applies in case you get retrenched or you unintentionally lose your job.

How You Can Get A Debt Consolidation Plan In Singapore

Debt consolidation loan Singapore is only made available to Singapore citizens or Permanent Residents.

In order for you to qualify for a Debt Consolidation loan Plan; you need to be salaried with a yearly take home of an amount from $30,000 to S$120,000. You also need to have outstanding loan balances which are interest- bearing on the unsecured credit services totalling a minimum 12 times the salary you earn each month.

You are also allowed to have only one active Debt Consolidation Plan at any given moment. After the first three months, you can then refinance the existing Debt Consolidation Plan by taking a second DCP from a participating financial institution. This is convenient for you when you find a financial institution that offers lower rates of interest in the market.

It is also essential to take note that when you enrol in an active Debt Consolidation Plan; you are not allowed to make an application for a new loan or a credit card. This you can access once your outstanding loan debt is lower than eight times your salary for each month. This is aimed at keeping you focused on paying up your outstanding debts.

Where You Can Obtain The Debt Consolidation Plan In Singapore

The debt consolidations plans are at present accessible at 14 financial institutions that are taking part in Singapore. These financial institutions include ANZ; CIMB; HSBC; Bank of China; Citibank; DBS; Industrial and Commercial Bank of China; Maybank; Standard Chartered, UOB, American Express and OCBC.

You are able to apply for a Debt Consolidation Plan from the financial institution of your picking. This is possible even when you do not have an account with them as yet. It is essential to take note that each of the financial institutions has its own conditions, provisions and interest rates for the Debt Consolidation Plan they offer to borrowers. It is proposed for potential borrowers to compare the plans offered before deciding on a particular financial institution of choice. This will ensure that you are signing a repayment plan and ideal rates of interest that addresses your financial position.

Before you can apply for a Debt Consolidation Plan, ensure you have the below-listed documents ready:

  • You need to have the most current report on your credit status
  • You will be required to have the most recent income documents
  • You need to have a copy of your valid identification card (both copies of the front and back)
  • You should also have the most current unsecured loan and credit card statements
  • Ensure you have a confirmation letter showing all the unbilled balances of the unsecured credit card loans and the instalments repayment plans.

Above all, a debt consolidation plan is a very convenient and useful tool for handling multiple high-interest rate debts that you may owe. When you have a number of personal loans and credit card bills, a Debt Consolidation Plan will be helpful in repaying these debts off. This will leave you with only one payment for each month, therefore, saving you lots of money with the lower rates of interest charged.


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