Balance Transfer Credit Card Singapore

By: EconomyWatch Content   Date: 29 January 2010

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 Imagine struggling with a big balance that you can’t afford to pay and an urgent payment that threatens to be reported if missed. Life with debt and urgent payments could be a mess in countries like Singapore, where luxury is the norm in life. However, thanks to balance transfer credit cards, one can breathe a sigh of relief.

In urgent situations, one can use balance transfer credit cards to avoid missing payments and save a lot of financial mess. However, rosy as they may look, balance transfer credit cards in Singapore, much like the rest of the world, have many strings attached.

Be Smart with Balance Transfer Credit Cards in Singapore

Nothing comes for free. Even though, in a bid to attract more consumers, many card issuers may offer free balance transfers for initial few months, the interest rates tend to be skewed once the offer period gets over.

It’s not only the interest rate that may surprise later on but a host of other factors such as:

  • ‘First few days’ condition: Many cards come with a condition of using the balance transfer facility with in the first few days, in order to be eligible for free balance transfers. Consumers failing to notice this may end up paying the interest rate, as well as the processing fee.

  • Limited period: Even though these cards can be used at any time during the eligible duration, consumers continuing to use the card for balance transfers may end up in larger debts.

  • Higher interest rates: Balance transfer is a facility that has to be conservatively used. One may not use the card during the introductory period. A higher interest rate after the introductory period may drill a deeper hole in the pocket.

If one is careful at the time of picking balance transfer cards in Singapore and takes the time to go through the finer print, these cards can help in more than one ways, including:

  • Making timely payments and escape hefty default penalties

  • Deferring the actual payment date and buy more time to arrange the funds

  • Improving credit history through large payments

As is the case with all the cards, balance transfer credit cards in Singapore can be the best financial assistance if used judiciously.


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