Secured Credit Card Singapore: Your Guide to 5 Best Cards

Secured credit cards are a great way to build credit or rebuild it after a financial setback. They are backed by a security deposit, which reduces the risk to the lender and makes it easier to qualify for.

In Singapore, there are a number of different secured credit cards available. Each card has its own features and benefits, so it is important to compare them carefully before choosing one.

To help you get started, here are some of the best secured credit cards in Singapore:

1. DBS Secured Credit Card

The DBS Secured Credit Card is a great option for people who are looking to build their credit. It has a low interest rate of 13.88% p.a. and no annual fee. The security deposit is $3,000, which is refundable after 12 months of on-time payments.

2. OCBC Secured Credit Card

The OCBC Secured Credit Card is another good option for people who are looking to build their credit. It has a low interest rate of 14.99% p.a. and no annual fee. The security deposit is $1,000, which is refundable after 12 months of on-time payments.

3. UOB Secured Credit Card

The UOB Secured Credit Card is a good choice for people who want to earn rewards on their spending. It offers 1.5% cashback on all purchases, and there is no annual fee. The security deposit is $2,000, which is refundable after 12 months of on-time payments.

4. Maybank Secured Credit Card

The Maybank Secured Credit Card is a good option for people who want a low-interest rate. It has an interest rate of 13.99% p.a. and no annual fee. The security deposit is $2,000, which is refundable after 12 months of on-time payments.

5. Citi Secured Credit Card

The Citi Secured Credit Card is a good choice for people who want a card with a high credit limit. It offers a credit limit of up to $10,000, and the security deposit is $5,000. The interest rate is 14.99% p.a., and there is no annual fee.

How to Choose the Right Secured Credit Card for You

When choosing a secured credit card, it is important to consider your individual needs and financial situation. Here are some factors to keep in mind:

• Interest rate: The interest rate is the amount of interest you will be charged on your unpaid balance. A lower interest rate will save you money over time.
• Annual fee: The annual fee is a yearly fee that you will be charged for having the card. Some cards have no annual fee, while others have a fee of $50 or more.
• Security deposit: The security deposit is the amount of money that you will need to deposit in order to open the account. The security deposit is usually refundable after 12 months of on-time payments.
• Credit limit: The credit limit is the maximum amount of money that you can borrow on the card. A higher credit limit will give you more flexibility, but it is important to only borrow what you can afford to repay.

Benefits of Using a Secured Credit Card

There are a number of benefits to using a secured credit card, including:

• Build credit: Secured credit cards can help you build credit or rebuild it after a financial setback. By making on-time payments and keeping your balance low, you can show lenders that you are a responsible borrower.
• Qualify for other credit products: Once you have built up your credit score, you will be able to qualify for other credit products, such as unsecured credit cards and personal loans.
• Improve your financial habits: Using a secured credit card can help you improve your financial habits. By tracking your spending and making on-time payments, you can learn to manage your money more effectively.

Caveats of Using a Secured Credit Card

There are also some caveats to using a secured credit card, including:

• Lower credit limit: Secured credit cards typically have lower credit limits than unsecured credit cards. This can limit the amount of money you can spend on the card.
• Security deposit: You will need to deposit a security deposit in order to open a secured credit card account. This deposit is usually refundable after 12 months of on-time payments, but it can be a significant amount of money.
• Interest charges: If you do not pay off your balance in full each month, you will be charged interest on the unpaid balance. Interest charges can add up over time, so it is important to only borrow what you can afford to repay.

Conclusion

Secured credit cards can be a valuable tool for people who are looking to build credit or rebuild it after a financial setback. By using a secured credit card responsibly, you can improve your financial habits and qualify for other credit products in the future.

Frequently Asked Questions

Q: What is the difference between a secured credit card and an unsecured credit card?

A: A secured credit card is backed by a security deposit, while an unsecured credit card is not. This makes secured credit cards less risky for lenders, which is why they are easier to qualify for.

Q: How much does a secured credit card cost?

A: The cost of a secured credit card varies depending on the card issuer. Some cards have no annual fee, while others have a fee of $50 or more. You will also need to pay a security deposit, which is usually refundable after 12 months of on-time payments.

Q: How can I get a secured credit card?

A: To get a secured credit card, you will need to apply with a lender. You will need to provide your personal information, financial information, and a security deposit.

Q: What if I miss a payment on my secured credit card?

A: If you miss a payment on your secured credit card, you will be charged a late fee. Your credit score will also be negatively affected. It is important to make on-time payments on your secured credit card in order to build credit and improve your financial habits.

Additional Resources

• Secured Credit Cards in Singapore
• The Pros and Cons of Secured Credit Cards
• How to Choose the Right Secured Credit Card