What is a Credit Card?
A credit card is a card issued by a financial company which enables the cardholder to borrow funds. Credit cards are one of the basic financial essentials we all need for our daily needs and expenses. The funds may be used as payment for the amount of goods and services. Financial companies issue credit cards in some conditions that the cardholder will pay back the original, borrowed amount plus any additional agreed-upon charges it may.
Top Factors Affecting Credit Card Eligibility
You may be excited in applying for your first credit card but before you apply for a credit card, you need to make sure that you are eligible for one. Yes, anyone can apply for a credit card in Singapore, but Singaporeans may have varied eligibility requirements compared to ‘outsiders’ or foreigners.
Is there an age requirement and how about the minimum income requirement?
Well, to have a credit card your age should be at least 21 years old and an annual income of at least $30,000 a year to $50,000 for main cardholders. Take note! Some credit card companies require an earning at least $50,000 a year to qualify as a main cardholder.
Will my residential status affect on my application?
Most financial companies have different income criteria for permanent residents/citizens of Singapore and foreigners. Typically, foreigners have to comply to a much higher income limit in order to be eligible to get a credit card in Singapore. Unfortunately, on the other hand, some financial companies just don’t offer credit cards to foreigners altogether.
Want to get a credit card as a foreigner in Singapore?
Most primary banks in Singapore let you apply for a credit card when you are a foreigner with a legitimate pass. But the kinds of cards accessible and the requirements you need to meet before you can follow might also range based totally on the kind of visa you hold, your earnings and other individual details.
The credit card application requirements that you need to meet as a foreigner vary between exceptional banks and providers. So, it’s an appropriate thinking to discuss your individual circumstances with your chosen issuer earlier than you apply for a card. Taking this step will give you the most correct information viable and extend your possibilities of approval for your chosen card.
Type of Occupation
The banks are also examining the job or type of occupation of the applicant. Whether the applicant is self-employed, salaried, student, or a business owner it can considerably affect the decision to approve a credit card. Still, banks prefer salaried individuals, or those with a demonstrated source of income.
Existing Relationship with Bank
Of course banks tend to approve giving credit cards to individuals they already know or its background details in the bank. Future applicants and cardholders should try and build up a good relationship with the bank in question for increase the chance of credit card approval.
Number of Credit Cards Already Own
Banks maybe doubtful to release another credit card to an individual who already holds few cards. This would be one of the factors that having an unusually high number of credit cards is an alarming signal to the financial company that the individual is too eager to have an another credit card.
Proper and Organize Documentation
This is the most significant point to remember besides the above mentioned. All the papers or documents submitted by the card applicant has to be genuine and verify the details provided to the bank such as identification proof, residency, and funds/income proof. All the applicant must make sure that all their documents are ready and well-organized before applying for a credit card.
How do Credit Cards Work?
You may use your credit card in many ways! For online transactions, you just need three pieces of details to use your credit card.
Your credit card number Your credit card expiry date Your credit card CVV (security code)
2-factor authentication (2FA) is also used on a secure website. This means you send a code to your registered mobile phone via SMS. Make sure the bank has your latest mobile phone number, because updating your mobile phone number can take up to one working day for the bank.
What is the CVV security code?
The CVV is the 3-digit number on the back of your Visa or Mastercard, next to the space you need to sign. It is the smaller four digits at the front of the credit card for American Express. It is the equivalent of your online transaction signature, so keep it safe and do not share it.
4 Steps to Apply for a Credit Card
1. Check Your Credit Scores and Reports
Contrary to common belief, you don’t have a single credit score: you have dozens. And they’ll determine which credit cards you qualify for.
2. Look for a Credit Card That Fits You
There’s no magic credit score as each card has its own approval requirements. But once you’re familiar with your credit profile, it’s easier to narrow the field and find the right card for you. Credit cards are available from a range of banks (Citi, Capital One, Chase, Wells Fargo, etc.) and networks (Visa, American Express, Mastercard, and Discover).
3. Check for Pre-Qualified Credit Card Offers
Once you’ve decided which cards might work for you, check with the issuers to see if you’re pre-qualified with them
Here’s how this works: -You’ll fill out your information on the credit card issuer’s website. -It’ll run a “soft inquiry” into your credit. -If the issuer thinks you’re a good fit for any of its credit cards, it’ll give you a pre-qualified credit card offer. Though this doesn’t guarantee you’ll get the card, it means you have a good shot. -You can then apply for the credit card, and the issuer will run a “hard inquiry” before approving or denying your application.
4. Apply for a Credit Card
Almost there! You’ve chosen the card that’s right for you, and are ready to fill out your credit card application.
Here’s how to complete the application process online:
-Click the “apply now” button for the card you want, whether on this website or the credit card issuer’s site.
-Provide basic information like your address, phone number, and Social Security number. When the form asks for your income, make sure you include everything you earn — even if it’s from multiple jobs or income sources. (Submit accurate information; while it may be tempting to exaggerate, it’s illegal.)
-In many cases, the issuer will instantly approve you or deny you when you submit your application. Some of the time, however, it’ll alert you by mail within a few weeks. If the issuer has additional questions about your application, someone may call you, then approve or deny you on the phone.