Choosing the right credit card offer is always a superlative option. There is no real right or wrong and it completely depends on your individual financial and personal goals. The Singapore market is flooded with offers and it can be easy to get tempted into the wrong deal. Here are some ways to compare credit cards and make an informed decision.



Interest rate / Credit Card APR:

Interest rates should be the focal point when you compare cards. The higher the interest rate, the more you will end up paying if you make partial payments. Partial payments refer to when you pay less than the full amount stated against the outstanding amount in the monthly statement. When you pay lesser than the total outstanding, you accumulate interest, which can take away from your savings substantially. There are many 0% interest offers, which you can leverage these days. These 0% offers are promotional and only last a certain duration. Be careful however, because once the promotional period ends, the interest rate shoots up dramatically. Ir is important to check different credit card offers and read the fine print on the introductory interest rates offered.

Annual fees: Most Singapore card issuers have stopped charging annual fees. Thus, most credit card offers will state zero annual fee or no fees etc. This can be misleading at times because in many cases the zero annual fee is only for 3-4 years. After this period, a fee is charged.

Balance transfer fees: Balance transfer is a process by which you transfer outstanding balances from a higher rate card to a more competitive lower rate card, to save money. However, every balance transfer is accompanied with a balance transfer fee. There are several credit card offers, which do not charge a balance transfer fee and you can take advantage of such offers to maximize savings.

Late fees: These are fees applicable when you make the payment after the due date on the credit card. You can check on the amount of late fees charged by reading the offer documents when you compare credit cards.

Balance transfer and Annual Purchase rates:

The balance transfer rate is the interest charged when you do a balance transfer. It is different from the balance transfer fee. The annual purchase rate, also called APR is the interest rate charged on purchases made on the card. When you compare credit cards, you may find companies stating a 0% APR for 3 or 6 months. This means, any purchases made within 3 or 6 months using the card, will have no interest on the purchases. After this promotional period, the interest rate goes back to the default rate.

Rewards and rebates:

It is also important to see the kind of rebate and rewards programs offered when you compare credit cards. The credit card market in Singapore has become very competitive and so many companies have started introducing attractive rebate and rewards programs. Make sure to leverage these credit card offers to get the most from your savings!