Campus Articles || DBS & *SCAPE || DBS & *SCAPE Financial Literacy # 1
How to choose a credit card
Students and fresh graduates can look out for credit cards tailored specially for young, vibrant lifestyles which may include benefits such as:
- Annual fee waiver for the first year or two.
- Faster and more convenient mode of payment where you can simply “wave and pay” at participating merchant outlets for purchases of $100 and below.
- Daily commute turns hassle free with the integration of ez-link into your credit card.
- Card offerings that are relevant to your lifestyle to best utilise their offers. This also makes accumulation of points easier for redemption of rewards.
It is best to choose a credit card which is from the same bank as your savings account, because it makes credit card bill payments easy, since you can simply transfer funds. You can also pay your bill via internet banking, mobile banking, GIRO, AXS and ATMs. DBS has over 700 AXS stations and 1,000+ ATMs, which makes payments even easier.
Read the fine print
Before applying, make sure you read the fine print so that you are fully aware of the fees, interest and charges that might be imposed on you.
Some credit cards offer initial low interest rates as an incentive, while higher rates may kick in after a certain period of time. The effective interest rates for credit cards is 24% per annum across the industry, unless there are promotional rates.
Understand your limit
Students will only get a maximum credit limit of up to $500 (ie. with the POSB Multitude Card), while fresh graduates who apply for credit cards will need to have a minimum annual income of $30,000, which gives you a credit limit of up to 4 times* your monthly income.
* subject to approval
What is a debit card?
Similar to a credit card, a debit card is more convenient than the normal ATM card, as it’s signature-based, and you can even use them overseas.
Unlike a credit card however, a debit card helps you to spend within your means, as the card is linked to your deposit account. You can also track your expenditures in your monthly bank account statement.
If you have a POSB/DBS debit card, you can even get a 0.3% cashback* on your purchases, as well as a host of dining and shopping privileges.
* Cashback is not valid for NETS purchases, bill payments and overseas transactions.