SINGAPORE CREDIT CARDS ARE YOUR BEST BET – WHY?
Anybody who’s ever been out and about in Singapore will tell you how easy it is to get credit. While the rest of the world has struggled with debt and lending, Singapore seems to have risen above it, maintained its traditional dignified front and carried on as normal. Believe us when we say that other major financial centres just don’t have the easy access to lending that we have, with banks everywhere too scared to lend money even to each other.
However, with many different sources for lending in Singapore, you have to choose carefully. Some are more secure than others, while others offer bad rates and disadvantageous terms. We’re convinced that for short-term lending, then your best bet will always be a credit card. Here’s why.
A credit card is – to all intents and purposes – a loan. The issuer has set you a credit limit, and it is up to the customer whether to borrow this money or not. The responsible customer will never borrow more than he can afford to pay back, and this means – used wisely – a credit card should never leave you in debt. For short-term lending and paying back the money within a month, as you do when you pay off your entire balance, you will pay zero interest. And if you’re on a card that has a premium points offer, you’re probably already into profit!
Elsewhere, that short term loan is going to cost you money and there’s no escaping it. Singapore has many licensed moneylenders, and they all come with their own fees an interest rates whether you pay them back straight away or not. We’ve also got endless licensed pawnbrokers, who are much the same, but will hold an item a security.
And then you’ve got bank loans. Bank loans have a habit – no matter if you go into it with the best of intentions – of not getting paid off straight away. Before you know it, you’ve got a debt that goes on for year after year, paying back several times the original loan. Bad idea.
Our advice is simple and it’s this: Be wary of borrowing money, and only do it in an emergency. While bank loans and mortgages have their place for long term lending, credit cards offer short term solutions as long as you have the discipline to ensure they’re promptly paid off. Be wise with your money, and all will be well.
Article by Jason Taylor – [email protected]