Credit Card - Annual Income lower than 30k

[lychitea]

As above, was wondering if there is any credit card I can apply below the annual of 30k?

 

[xSieghartx]

Just try to apply regardless, it may still be approved.

 

[Perisher]

Think manhattan got a version for $500 limit.

 

[lychitea]

Just try to apply regardless, it may still be approved.

Where apply ah? I try to do it online but when I put my salary then cannot proceed cos they say income not enough.

 

[Perisher]

Where apply ah? I try to do it online but when I put my salary then cannot proceed cos they say income not enough.

Go to the bank or roadshow. the roadshow agents more eager to push through.

 

[lychitea]

Go to the bank or roadshow. the roadshow agents more eager to push through.

Ok. Thanks Perisher

 

[Perisher]

Ok. Thanks Perisher

But your salary must be close so they can push... If too far, not possible.
30k is bare minimum by the law. if you earn $2400, maybe can. $2000, then don't need to try le.

 

[BBCWatcher]

Think manhattan got a version for $500 limit.

This is a good answer. The $30K minimum income requirement is a regulatory requirement, but there is an exception for one low credit limit card. There are three such credit cards that I know of that are available to the general working public (non-students):

1. One has already been mentioned: the Manhattan $500 Card.

2. Another is Bank of China's F1RST Card.

3. Diners Club offers the International Ace Credit Card, and it has the lowest minimum income requirement of all ($16,000/year).

It's hard to say which is best. Diners Club has the lowest annual fee ($28), and if you charge $2,000 to the card over the course of a year (average of $167/month, excluding AXS terminal payments) you can get enough Club Rewards points to get a fee waiver -- there are no mysterious fee waiver criteria. Diners Club isn't as widely accepted, although that's probably a very good thing when you're just looking to build a credit history. Diners Club is the only credit card accepted for CPF top ups. BOC's F1RST Card has a ridiculous annual fee (S$190), although it's waived for the first two years (instead of a one year waiver). It offers the best rebate (0.5%) among these cards. The Manhattan $500 Card has a slightly higher annual fee than Diners, but unlike the Diners Ace you'll never be able to claw back the annual fee via points or rebates. So you're at Standard Chartered's (or BOC's) mercy whether they'll waive the fee or not.

I think I'd go with the Diners Ace in this category, in part because the annual fee waiver rules are transparent and achievable. In this case the limited acceptance is a feature not a bug -- you shouldn't be using a credit card very much (your DBS Visa Debit Card is a much better deal right now, with that 5% rebate promotion still underway), and you should be paying it off automatically every month anyway. This card is just to build a credit history. And it happens to have the lowest income requirement ($16,000/year instead of $18,000).

Sadly, CIMB discontinued its $500 credit card earlier this year (2017). That one was a gem with no annual fees to worry about, ever, for life. For those of you who grabbed the CIMB Classic MasterCard while it was available, you can hang onto it. If nothing else it'll be useful for CIMB merchant promotions in Singapore, and it doesn't cost anything to keep in your wallet.

 

[BBCWatcher]

Yet another possible option is to apply for a secured credit card, if you can afford the deposit -- if you have some wealth but limited income, basically. The best of that secured bunch is probably CIMB's Secured Platinum MasterCard. (Their Visa Signature is almost identical, but I slightly prefer their Platinum MasterCard.)

To get one of these credit cards -- with no annual fee, for life! -- you will need to place a $10,000 fixed deposit with CIMB. You can place a 24 month $10,000 fixed deposit and get 1.0% interest, as I write this. (If you can manage $20,000 you can get a better interest rate.)

For CIMB's secured credit card application form, look here ("CIMB Secured Credit Card"). Until the end of December, 2017, there's a sign-up bonus of a $40 Takashimaya Gift Voucher. Nothing wrong with that.

You must keep that $10,000 (or more) fixed deposit at CIMB in order to keep your credit card account open -- that's what secured means. If you want to remove that restriction, you'll have to provide evidence to CIMB that you have at least $30,000/year of income and get approved to lift the fixed deposit requirement.

 

[Maeda_Toshiie]

As above, was wondering if there is any credit card I can apply below the annual of 30k?

Other than the $500 credit types, you have two other options:

1. Put a fixed deposit ($10000) and get secured credit card.

2. Get a debit card instead of a credit card.

 

[tiertime]

i saw some banks allow old ppl apply credit card only need annual income $15K, can ask ur mom/dad to apply

 

[Perisher]

CIMB forever no annual fee card ain't that forever. If they decide to discontinue it, you can at most keep 5 years before it expire.

 

[BBCWatcher]

CIMB forever no annual fee card ain't that forever. If they decide to discontinue it, you can at most keep 5 years before it expire.

That's doubtful. CIMB discontinued their Classic MasterCard earlier this year (2017) but is allowing anybody who got one (and who pays their bills of course) to keep it. They're issuing new Classic MasterCards to existing cardholders as the old ones expire and allowing trade-ups when a cardholder qualifies.

It's not in the bank's own interest to chase away existing cardholders in good standing. As long as CIMB trades in Singapore, no problem.

ANZ is another recent example. ANZ sold its cards business to DBS, i.e. ANZ stopped trading in Singapore. DBS promptly ended the no annual fee deal that ANZ Switch cardholders had. (Although that deal was not quite as generous since ANZ explicitly required Switch cardholders to use their cards at least once per year.)

 

[henrylbh]

Free of annual fee is not for life and the bank can anytime withdraw such offer.

But I paid a one-time fee long ago for a 'Lifetime Member' printed on my SCB for a platinum card, with 3 sup cards. And I never use it for the past 10 years, including the sup cards

Believe or not, the last time the bank sent me 4x3 replacement cards before the old ones expiry

 

[Perisher]

That's doubtful. CIMB discontinued their Classic MasterCard earlier this year (2017) but is allowing anybody who got one (and who pays their bills of course) to keep it. They're issuing new Classic MasterCards to existing cardholders as the old ones expire and allowing trade-ups when a cardholder qualifies.

It's not in the bank's own interest to chase away existing cardholders in good standing. As long as CIMB trades in Singapore, no problem.

ANZ is another recent example. ANZ sold its cards business to DBS, i.e. ANZ stopped trading in Singapore. DBS promptly ended the no annual fee deal that ANZ Switch cardholders had. (Although that deal was not quite as generous since ANZ explicitly required Switch cardholders to use their cards at least once per year.)

It's not doubtful, they just do what is beneficial to them.
If the amount of people who holds the card without using it is a large %, the cost might outweigh the benefit.

Anyway, still the same, the forever isn't forever. It's up to the bank whether they wanna continue unless they issue a card with no expiry.

 

[BBCWatcher]

Free of annual fee is not for life and the bank can anytime withdraw such offer.

No, they cannot.

Folks, we've been through this. Words have meaning, even in Singapore. Here's CIMB's offer: "Experience the convenience and freedom of owning a CIMB Credit Card with no annual fees for the Principal Cardmember, ever."

There is no annual fee on a CIMB credit card, for life -- for the life of CIMB Singapore or of the principal cardholder, whichever is shorter. That's the deal, plain and simple.

....Do you all work for some other bank?

Now, there are MANY terms CIMB reserves the right to change. Hypothetically, CIMB could announce that, from now on, new applicants will pay an annual fee. CIMB can close card accounts, even accounts in good standing -- either before or at card expiry. CIMB could impose a minimum annual purchase requirement, and if not met the account will be closed. CIMB could sell its whole card business to another bank, and then that other bank could do something else. But CIMB cannot, by its own terms, charge its existing (and currently applying) card holders an annual fee, ever. The key reason CIMB is making this promise is to distinguish itself in the market, and congratulations to CIMB for doing so -- it's very pro-consumer. (More, please.)

 

[cscs3]

As above, was wondering if there is any credit card I can apply below the annual of 30k?

There is always a debit card. Now a day most bank issue that as a ATM card.

 

[wira]

Yeah if you need Mastercard or Visa card just apply for debit xard

 

[vialo_89]

Does anybody knows if I am able use credit cards to pay by installments of engagement rings for miles?

 

[BBCWatcher]

Does anybody knows if I am able use credit cards to pay by installments of engagement rings for miles?

If you have a credit card that rewards you with miles, and if you buy an engagement ring with that card, sure, you'll get miles.

The installment part varies. Every credit card allows you to pay less than the full balance (down as low as the minimum payment), so paying off an engagement ring in installments that way is no problem at all. The credit card issuer is very, very happy if you do that, because the interest rate is quite high. It's at least 15% in Singapore (Maybank Platinum Visa credit card), usually above 20%. Bad idea. You're much better off applying for a personal loan at a lower interest rate.

If you follow the card rules carefully, OCBC's Cashflo MasterCard credit card will automatically convert an engagement ring purchase ($1,000 or more) into a 6 month interest free installment repayment plan. Your card credit limit must be high enough to allow the full ring purchase in one transaction, and you cannot miss any monthly payments (in full, inclusive of the full installment amount for that month). This is not a miles earning credit card, but in some cases you can receive a rebate.

If the merchant agrees to extend zero percent (or low interest) financing and charge your card in installments, that's fine. Yes, generally whatever miles, points, or rebates your card provides will be calculated based on the merchant's charges to your card.

There is a school of thought that you shouldn't get engaged (or at least buy the engagement ring) until you can actually afford to buy it without credit. However, if your spouse-to-be doesn't mind your negative net worth, who am I to argue.