radioshack
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SINGAPORE - I was at a networking lunch with the corporate communications team of a financial institution some time back.
One of them asked if any of us still did not own a credit card.
I kept silent because I felt a sudden rush of shame. I don’t own a credit card and had never intended to. I had also never felt that it was something I had to reconsider, until that day.
My philosophy has always been to spend only what I have at any given moment. And if it is a big purchase like a house or a car, technically I will be getting a mortgage or some form of secured loan, rather than using the unsecured loan that a credit card offers.
But it appears that I am the odd one out when it comes to living a credit card-free life.
According to data from OCBC Bank, more people in their 20s hold a credit card these days, with the number of them doubling in recent years.
“We recognise that credit cards are a rite of passage for many young people, as you can only apply for a credit card when you earn at least $30,000 a year. It signifies a change in life stage and the start of financial independence,” said Ms Tok Geok Peng, OCBC’s acting head for group lifestyle and ecosystems.
UOB also said that it continues to see steady growth in credit card ownership across all ages.
“Credit cards are growing in popularity, especially among those aged 35 years oldand below, with a greater proportion of them holding credit cards as at end-2024,” said Ms Jacquelyn Tan, the bank’s head of group personal financial services.
She said the growth in number of younger people holding UOB credit cards year on year outpaces that of people above 35 years old.
In the 2023 financial year, nearly 25 per cent more people aged 35 and below held credit cards as compared with 2022. For those above 35 years old, the rise was only at 6 per cent.
And in the 2024 financial year, nearly 10 per cent more people aged 35 and below held credit cards as compared with 2023. For those above 35 years old, this increase was 5 per cent.
But in January 2025, I realised I was not alone after all in my eschewing of credit card ownership. My colleague Chor Khieng Yuit said in a column that she has never had a credit card because she was uncomfortable with the idea of spending money that she does not actually have.
That struck a chord with me. The issue is not being unable to own a credit card, but feeling no need of one, because like her, I keep my purchases small enough that I can afford them all at once.
When it comes to bigger-budget purchases like air tickets or hotel stays, I ensure that I have enough money set aside in a “travel fund” to be able to finance the entire holiday before I pay for anything.
I also have an Excel spreadsheet that meticulously tracks my spending and savings in little colour-coded columns, to ensure I keep on top of my finances.
Credit cards also come with the burden of having to pay a lump sum at the end of the month. OCBC’s Ms Tok cautioned that those using a credit card may incur fees such as interest charges on unpaid balances, late payments and annual servicing fees.
Since I do not own a credit card, I can be free from the worry of incurring late fees – something that is not unusual, according to friends and family.
Choosing to own a credit card or just stick with a debit card really depends on one’s personal spending habits and behaviour, said Ms Tok.
“A credit card isn’t better than a debit card or vice versa. Both are simply payment facilitators, with different value propositions to suit the gamut of customers’ needs,” she said.
“A no-frills customer who spends minimally and wants a fuss-free experience will be satisfied with a debit card. Meanwhile, we have had high-spending customers who buy a luxury bag or watch, and go on to redeem a return flight through the miles racked up on that purchase.”
Indeed, a big perk of credit cards is being able to earn rewards such as cashback or air miles. The same amount of expenditure on a credit card can garner better perks, compared with a debit card.
For instance, the UOB PRVI Miles Card allows customers to earn accelerated miles per dollar spent overseas.
I have noted, with some envy, the experiences of friends who did not pay a cent for long-haul flights because they were savvy in using their credit cards and had stacked up enough miles to pay for the flight tickets.
A DBS spokesperson said the bank has observed the current generation of young adults to be more geared towards reaping the benefits of their spending than their predecessors.
“They are focused on offerings that provide them the best returns for their spends – whether it be miles, cashback or reward points, and spend strategically to maximise the number of rewards and benefits geared towards their lifestyles,” the spokesperson said.
Credit card perks have indeed tempted me on numerous occasions, with signs at restaurants and even online shops promising cashback or other rewards for paying with a credit card.
But the feeling has been fleeting. And the thought of having to chase rewards and consciously accumulate them had me feeling weary, before I even started.
UOB’s Ms Tan added that a credit card can offer greater convenience and safety than cash when making payments overseas.
In the event of theft or fraud, an emergency self-service kill switch can be used on the bank’s app to instantly stop the use of the card.
The cancellation of the credit card can also mean that no money has technically been lost from the traveller’s bank account, unlike a debit card – a point that my brother tried to emphasise when I lived overseas.
Ms Tan said another reason to use credit cards is for big-ticket items like home renovations, furniture and household appliances or luxury goods.
“Instead of paying the full amount immediately, using a credit card instalment payment plan can help consumers to manage their monthly cash flow and repay large amounts gradually at a fixed interest rate,” she said.
Ms Tok noted that the credit card can be useful in unexpected events such as when one has to pay for emergency medical expenses.
“A credit card allows the cardholder to make upfront payment and resolve the medical issue first while waiting for insurance claims to kick in,” she said.
It is this last point that has resonated the most with me.
I have been fortunate enough not to have to spend huge sums of money thus far, and whatever I had to pay for, including further studies, was covered by a mixture of scholarships and my existing bank balance.
But being able to have money on credit in the event of an emergency sounds important – and a far greater perk than accumulating miles for flights or cashback.
If anything, this is the one likely factor that will see me join the ranks of credit card owners, rather than being on the outside with my debit cards. Just don’t expect me to chase after the rewards.
https://www.straitstimes.com/busine...free-life-no-late-fee-worries-or-overspending
One of them asked if any of us still did not own a credit card.
I kept silent because I felt a sudden rush of shame. I don’t own a credit card and had never intended to. I had also never felt that it was something I had to reconsider, until that day.
My philosophy has always been to spend only what I have at any given moment. And if it is a big purchase like a house or a car, technically I will be getting a mortgage or some form of secured loan, rather than using the unsecured loan that a credit card offers.
But it appears that I am the odd one out when it comes to living a credit card-free life.
According to data from OCBC Bank, more people in their 20s hold a credit card these days, with the number of them doubling in recent years.
“We recognise that credit cards are a rite of passage for many young people, as you can only apply for a credit card when you earn at least $30,000 a year. It signifies a change in life stage and the start of financial independence,” said Ms Tok Geok Peng, OCBC’s acting head for group lifestyle and ecosystems.
UOB also said that it continues to see steady growth in credit card ownership across all ages.
“Credit cards are growing in popularity, especially among those aged 35 years oldand below, with a greater proportion of them holding credit cards as at end-2024,” said Ms Jacquelyn Tan, the bank’s head of group personal financial services.
She said the growth in number of younger people holding UOB credit cards year on year outpaces that of people above 35 years old.
In the 2023 financial year, nearly 25 per cent more people aged 35 and below held credit cards as compared with 2022. For those above 35 years old, the rise was only at 6 per cent.
And in the 2024 financial year, nearly 10 per cent more people aged 35 and below held credit cards as compared with 2023. For those above 35 years old, this increase was 5 per cent.
But in January 2025, I realised I was not alone after all in my eschewing of credit card ownership. My colleague Chor Khieng Yuit said in a column that she has never had a credit card because she was uncomfortable with the idea of spending money that she does not actually have.
That struck a chord with me. The issue is not being unable to own a credit card, but feeling no need of one, because like her, I keep my purchases small enough that I can afford them all at once.
When it comes to bigger-budget purchases like air tickets or hotel stays, I ensure that I have enough money set aside in a “travel fund” to be able to finance the entire holiday before I pay for anything.
I also have an Excel spreadsheet that meticulously tracks my spending and savings in little colour-coded columns, to ensure I keep on top of my finances.
Credit cards also come with the burden of having to pay a lump sum at the end of the month. OCBC’s Ms Tok cautioned that those using a credit card may incur fees such as interest charges on unpaid balances, late payments and annual servicing fees.
Since I do not own a credit card, I can be free from the worry of incurring late fees – something that is not unusual, according to friends and family.
Choosing to own a credit card or just stick with a debit card really depends on one’s personal spending habits and behaviour, said Ms Tok.
“A credit card isn’t better than a debit card or vice versa. Both are simply payment facilitators, with different value propositions to suit the gamut of customers’ needs,” she said.
“A no-frills customer who spends minimally and wants a fuss-free experience will be satisfied with a debit card. Meanwhile, we have had high-spending customers who buy a luxury bag or watch, and go on to redeem a return flight through the miles racked up on that purchase.”
Indeed, a big perk of credit cards is being able to earn rewards such as cashback or air miles. The same amount of expenditure on a credit card can garner better perks, compared with a debit card.
For instance, the UOB PRVI Miles Card allows customers to earn accelerated miles per dollar spent overseas.
I have noted, with some envy, the experiences of friends who did not pay a cent for long-haul flights because they were savvy in using their credit cards and had stacked up enough miles to pay for the flight tickets.
A DBS spokesperson said the bank has observed the current generation of young adults to be more geared towards reaping the benefits of their spending than their predecessors.
“They are focused on offerings that provide them the best returns for their spends – whether it be miles, cashback or reward points, and spend strategically to maximise the number of rewards and benefits geared towards their lifestyles,” the spokesperson said.
Credit card perks have indeed tempted me on numerous occasions, with signs at restaurants and even online shops promising cashback or other rewards for paying with a credit card.
But the feeling has been fleeting. And the thought of having to chase rewards and consciously accumulate them had me feeling weary, before I even started.
UOB’s Ms Tan added that a credit card can offer greater convenience and safety than cash when making payments overseas.
In the event of theft or fraud, an emergency self-service kill switch can be used on the bank’s app to instantly stop the use of the card.
The cancellation of the credit card can also mean that no money has technically been lost from the traveller’s bank account, unlike a debit card – a point that my brother tried to emphasise when I lived overseas.
Ms Tan said another reason to use credit cards is for big-ticket items like home renovations, furniture and household appliances or luxury goods.
“Instead of paying the full amount immediately, using a credit card instalment payment plan can help consumers to manage their monthly cash flow and repay large amounts gradually at a fixed interest rate,” she said.
Ms Tok noted that the credit card can be useful in unexpected events such as when one has to pay for emergency medical expenses.
“A credit card allows the cardholder to make upfront payment and resolve the medical issue first while waiting for insurance claims to kick in,” she said.
It is this last point that has resonated the most with me.
I have been fortunate enough not to have to spend huge sums of money thus far, and whatever I had to pay for, including further studies, was covered by a mixture of scholarships and my existing bank balance.
But being able to have money on credit in the event of an emergency sounds important – and a far greater perk than accumulating miles for flights or cashback.
If anything, this is the one likely factor that will see me join the ranks of credit card owners, rather than being on the outside with my debit cards. Just don’t expect me to chase after the rewards.
https://www.straitstimes.com/busine...free-life-no-late-fee-worries-or-overspending
