Secured Credit Cards - 2014

[Motoconnect]

Thinking to get a secured credit card. Since my income requirement is too low to apply for a credit card. So, I am putting up a time deposit of S$10,000 as my collateral.

I have some few questions for secured credit cards users:

1) What are the advantages and disadvantages in getting the card?
2) How long is the process in getting the card? Which Bank?
3) How much is your collateral and how much credit limit did you get?
4) Any problems that you have encountered?

Please share your good and bad experience here! Thank you!

 

[wts2013]

1. Depends which card u getting, more adv than disadv, how adv is your choice. I got from scb, manhattan was and still useful for rebates, bonusaver, etc
2. scb took long time to process, that's typical of this bank, oops,
3. min 10k FD as collateral, 10k becomes your credit limit shared across all credit cards. If u want higher credit limit, then increase your FD amt.
4. problems none, other than long waiting time to get the credit card.

 

[kazejin]

Why do you want a credit card?
Why not use a debit card?

 

[Motoconnect]

Thank you for your inputs wts2013.

I have already approached one bank here and they said, they will let me know once the secured CC is approved. Just waiting for their update. Hopefully, they can send it to me by next week! This is my first CC. I hope the rewards of credit card is really worth it.

kazejin, i am travelling to Europe soon. I want to use credit card instead of my debit card. My S$10k collateral is already safe for time deposit (Interest is very low. Earning only at 0.05% per month). At the same time, I have an extra leg if I really really need to use the credit card - I have a back up plan.

 

[wts2013]

wah, my FD earning higher interest than u, yours must be from local bank, hahaha, why not get one which pays u higher interest?

 

[Motoconnect]

CitiBank was the fastest bank who assisted me on my request. A Telesales Agent called me and they helped me to setup my account immediately. Other banks seems to ignore my application thru email. I also dropped by to UOB but they seemed unknowledgeable with my request. Btw, how much interest are you getting in SCB?

 

[wts2013]

FD interest given based on board rate, scb was 0.35%, they will not let u have special FD rate if there is promo going on.

secured credit card must apply personally at branch. One reason for delay is RM dun know all the rules/procedures, so got hiccup, until I personally go down to the centre to complain for delay in issue of second card.

 

[Motoconnect]

FD interest given based on board rate, scb was 0.35%, they will not let u have special FD rate if there is promo going on.

secured credit card must apply personally at branch. One reason for delay is RM dun know all the rules/procedures, so got hiccup, until I personally go down to the centre to complain for delay in issue of second card.

I followed up my application and they said that it will take 1-2 weeks for the processing. So long for a secured CC. I am sensing that I may have the same experience as yours (Hopefully Not! ). Dunno how fast they can approve it, if not - I will just cancel my time deposit and use it for my debit card instead. My Europe trip is on August already!

 

[kazejin]

Cancelling the deposit might be troublesome as it is marked as a pledge.
It could take another month.

 

[Motoconnect]

Cancelling the deposit might be troublesome as it is marked as a pledge.
It could take another month.

You are absolutely right! 45 days...
Then, they better approve my secured CC if not - no reason for them to hold on to my S$10k (it's a pledge for a reason).

 

[wts2013]

You are absolutely right! 45 days...
Then, they better approve my secured CC if not - no reason for them to hold on to my S$10k (it's a pledge for a reason).

keep calling them to find out the status of processing, make some noise

 

[kazejin]

A debit card is much less troublesome.
Not sure what/how much spending you are intending, but a secured credit card is possibly not worth the hassle.

Placing the same 10k in OCBC 365 deposit can generate $300 a year.

You got to generate over $300 in rebates on the card,
deal with the hassles like point conversion, voucher redemption, request annual fee waivers, making sure to pay back on time to avoid charges, etc.

 

[Motoconnect]

wts2013, Let me wait for 1 week. They said 1-2 weeks. If 1 week had passed and no news, I will call to follow up. If 2 weeks, still no news - I will withdraw my application and try other bank (hope not!).

Kazejin, sounds good. But I want a credit report to credit bureau. I don't know if it has an impact but I am also planning to apply for a PR soon. I've been staying here in SG for almost 6 years already and still holding a work pass.

For the bank that I applied... S$10,000 FD --- Interest after 1 month: SGD 0.44

 

[Izumi8]

Placing the same 10k in OCBC 365 deposit can generate $300 a year.
You got to generate over $300 in rebates on the card,
deal with the hassles like point conversion, voucher redemption, request annual fee waivers, making sure to pay back on time to avoid charges, etc.

No OCBC credit card, cannot get 3% interest. Assume salary also credit to other banks (HR lazy to change bank), only can get 1% or SGD100 pa at most.

 

[Izumi8]

wts2013, Let me wait for 1 week. They said 1-2 weeks. If 1 week had passed and no news, I will call to follow up. If 2 weeks, still no news - I will withdraw my application and try other bank (hope not!).

OCBC is super slow on certain cases. You may have to give them at least 4 or 5 weeks I think.

 

[Motoconnect]

OCBC is super slow on certain cases. You may have to give them at least 4 or 5 weeks I think.

Not OCBC. It's Citibank.

Thinking also to change my bank (salary) to step up account of Citibank.
Can I get good returns also like OCBC? Any first hand experience with S$10K FD?

 

[Motoconnect]

It was approved! Just waiting for them to mail out the card. At least, I can rest my case.

 

[henrylbh]

A debit card is much less troublesome.
Not sure what/how much spending you are intending, but a secured credit card is possibly not worth the hassle.

Placing the same 10k in OCBC 365 deposit can generate $300 a year.

You got to generate over $300 in rebates on the card,
deal with the hassles like point conversion, voucher redemption, request annual fee waivers, making sure to pay back on time to avoid charges, etc.

Where got such thing "10k in OCBC 365 deposit can generate $300 a year" That 3% cannot be right.

 

[itedino]

If too low, what is the motive you apply one?? use cash to pay. I dun think u spend that regularly.

 

[acetylcholine]

Yes, it will appear on your credit report. It will be stated as "Secured Credit Card" under Product Type.

If I am not wrong, it does go towards contributing towards your credit rating so that is one benefit of applying for a secured credit card when you are ineligible for unsecured credit facilities (as compared to restricting yourself to debit cards which do not feature in your credit report).

When the time comes for you to apply for unsecured credit facilities, the bank may give you some credit if your payment history is positive.

You should also take note that after cancelling the secured credit card, there will usually be a holding period of 30-45 days before the bank lifts the pledge from your cash deposit.