Credit & Loan Archives | Page 14 of 17

Best Credit Card Promotions To Usher In The Lunar New Year

Be a cheeky monkey who maximizes your prosperity with these great credit card offerings for the year 2016…

1. STANDARD CHARTERED

Standard Chartered rewards you with 15% CashBack wherever you feast this Chinese New Year. From 16th January to 15th March, you can get rebates once you are charged with a minimum of S$688 on your total spending courtesy of your credit card (not limited to dining bills).

Go to sc.com/sg/campaign/cardscny for more information about its Terms and Conditions.

2. HSBC

Aside from getting S$8 Hong Bao cash rebates daily with HSBC credit cards (till 29th February – T&Cs apply), you can enjoy a wide range of promotions from dining, shopping, and travel.

a. 15% off Yu Sheng and Pen Cai Takeaways
b. 15% off storewide when you shop at ZALORA Singapore
c. Up to S$50 off selected items at AngelFlorist.com
d. Additional 8% off bookings on Singapore hotels and more at Agoda

Simply go to hsbc.com.sg/cny for more details and other festive offers.

* EXCLUSIVE: SIGN UP FOR A HSBC’S REVOLUTION CREDIT CARD AND RECEIVE A SAMSONITE RED ROBO LUGGAGE 
WORTH S$335 OR A REDMART GROCERY VOUCHER WORTH S$80! T&CS APPLY. CLICK HERE FOR MORE INFORMATION.

3. DBS

DBS credit cards also reward you for your dining experiences. Here are some of their delicious offerings:

a. 20% off orders at foodpanda.sg. Valid until 22nd February.
b. 20% off the Lunar New Year Dinner Buffet at Brizo Restaurant & Bar – Park Hotel Clarke Quay. Valid until 22nd February.
c. 15% off lunch or dinner buffets at Grand Park City Hall. Valid until 19 February.

4. OCBC

OCBC credit cards will reward you with a tempting array of promotions that will keep you covered this festive season! These are my top picks:

a. 15% off takeaway CNY Treasures at Goodwood Park Hotel. Valid until 22nd February.
b. 10% off regular priced items at TAKA Jewellery. Valid until 28th February.
c. 10% off apartment and villa rentals in Asia and Europe courtesy of Roomorama. Valid until 29th February.
d. Get a Bioskin Radiance Bundle for only S$38. Valid until 29th February.

Image Credits: facebook.com/OCBC.Singapore

Visit ocbc.com for more information about the Terms and Conditions.

Reduce Your Debts Dramatically With The Debt Diet

Ellie Kay once said: “Getting out of debt is like going on a diet — it may sound simple, but it sure isn’t easy.”

Debt takes a toll on your relationships, your family, and your future. Just as being obese leads to physical and emotional challenges, debt has its own negative consequences too.

Inspired by Oprah Winfrey’s Debt Diet, three financial experts namely: David Bach, Jean Chatzky, and Glinda Bridgforth were sent to help several families to solve their monetary dilemmas. They shared debt elimination tips and suggested practical ways for people to increase their income and reduce their spending.

Before anything else, here are the “signs” that you need to go to participate in the Debt Diet:

1. You depend on your credit card to pay for your living expenses.

2. You rely on overtime pay to make monthly expenses meet.

3. You utilize your credit card/s to pay for items that you used to pay for in cash (e.g., groceries or clothing).

4. You use your emergency savings to pay for your bills.

5. You borrow money from your family and friends to pay your bills.

6. You delay paying one bill in order to pay an overdue one.

7. You utilize credit card A to pay bills for credit card B.

8. You can only pay the minimum amount due on your accounts.

If most of the “signs” point to YES, you may employ the following steps of the Debt Diet:

1. Determine how much debt you have and what it is costing you.

2. Monitor your spending and look for ways to make extra money (e.g., by giving up certain expenses).

3. By understanding how credit cards work, use your credit card/s to your advantage.

4. Stop spending on unnecessary things.

5. Make a strategic monthly spending plan.

6. Determine ways to increase your income and identify the steps you need to achieve it.

7. Prioritize your debts.

8. Do your best to know yourself and your spending behaviors.

Image Credits: pixabay.com (License: CC0 Public Domain)

Sources: 1 & 2

Bank Loan and HDB Loan: Which Has More Advantage?

For any potential home buyer, home loans should be a serious business. Pick the wrong kind and it can cause a cascade of unfortunate events, including being trapped in a huge debt and even losing your home.

But between a bank and an HDB loan, which one is better? Let’s compare them:

How much can you borrow?

Under the HDB loan, you can borrow up to 90% of the purchase price or the market value, whichever is lower.

Banks, on the other hand, can provide you with up to 80% Loan to Value (LTV) of the property. This the ratio of the loan quantum to the property’s appraised value.

Take note, though, that both HDB loans and bank loans cannot guarantee the full LTV. Simply stated, it can be lower than 80% or 90%. This means that you have to use your own money to pay off the rest of the mortgage or consider other bank loans.

Taking out a personal loan to cover the rest is an option, but this might affect your debt servicing ratio. Always compare to find the best personal loans.

How much is the down payment?

HDB loans would require 10% down payment, which may be fully covered by your CPF savings. Banks would need 20%, 5% of which should be in cash as only 15% can be absorbed by the CPF. Regardless of which loan you choose, though, repayments may be made through the CPF.

How do they calculate the interest rate?

One of the biggest differences between HDB loan and bank loans is in the way they determine the interest rate. For a home buyer, you need to learn this as it’s the basis for the amount you pay on top of your principal loan.

The HDB loan is pegged at 0.1% above the CPF Ordinary Account (OA) rate. Do note that the CPF rate is reviewed quarterly, so the rate may still change, although it is quite consistent.

Banks can offer either a fixed or a variable rate, although the fixed rate is not perpetual: it’s fixed for only a few years, say, three to five years. Then the rate becomes variable.

Either way, banks have three possible bases for computing their interest rates: SIBOR Singapore Interbank Offered Rate (SIBOR), Swap-off Rate (SOR), and Internal Bank Rate (IBR). On top of that, the bank adds a spread, which is the bank’s charges. As an example, the SIBOR rate (we’ll use this since it’s the most preferred bank rate) may be 1.1% and the spread is 0.9%, which means the overall interest rate is 2%.

Banks express the interest as 0.5% + 3-month SIBOR, which means the rate is revised every three months.

Although banks can offer similar home loan packages, they can still differ on the interest rate alone. Thus, to make sure that you can make the right decision about that, speak to a mortgage broker.

Over the last few years, homeowners with bank loans have been enjoying lower interest rates, but that’s due to quantitative easing (QE), which somehow repressed the bank’s interest rates. But now that it’s over, the rates may significantly change.

Hopefully, with this article, you can make a much better choice whether to get an HDB loan or a bank loan.

(This article is brought to you by SingSaver.com.sg)

Must Read: 5 Tips On Using Credit Cards While Traveling Overseas

If you are traveling soon, arming yourself with sufficient cash and credit cards can conveniently cover all your expenses. When using your plastic card in fancy restaurants or tourist destinations, you would not have to worry about converting the currency (through the nearest money converter) or whether you converted the right amount. The credit card company will automatically do that for you. This process not only comes with simplicity but also extra costs.

Aside from choosing a credit card that is widely accepted across the globe such as MasterCard or Visa, here are 5 tips on getting the most of using your credit cards while traveling overseas…

1. KNOW THE EXTRA FEES

Even if your credit card is widely accepted, you must expect foreign exchange fees and ATM transaction charges. This is why it is recommended to contact your card issuer or bank to inquire about any extra fees or interest while traveling overseas. Through this, you can maintain your travel budget.

2. KNOW THE CREDIT LIMIT AND CARD’S EXPIRATION DATE

Nothing greatly ruins a glorious trip than suddenly discovering that you are unable to pay for your expenses. It is a shameful mess you do not want to get caught on! So, you must know and double confirm your credit limit and credit card’s expiration date with your card issuer or bank.

3. KNOW THE PROTOCOL FOR STOLEN CARDS

Although pick pocketing happens less when you conceal your credit card well, you must be familiar with the protocol for stolen cards. Firstly, you must check all your pockets and bags in case you just misplaced it. Then, report that your card is missing so you will not be charged for unauthorized purchases.

4. KNOW IF THE MERCHANT OR RESTAURANT ACCEPTS CARDS

Before deciding to indulge in the services of a merchant or a restaurant, it pays to know if they accept credit cards first. While some proudly display their credit card partnerships on the walls, others may hide it. You must still carry cash in case you found out that you couldn’t pay via credit card due to unforeseen events.

5. KNOW THE CARD’S TRAVEL BENEFITS

Most credit cards come with travel benefits such as discounted accommodations or dining. Take advantage of these rewards to help fund your vacation. If you want to know the best travel credit cards in Singapore, check this out.

Image Credits: pixabay.com (License: CC0 Public Domain)

Sources:1 & 2

Newbie’s Guide To The Dynamics Of Debt And Credit

DEFINITION

Before anything else, we must define two terms: debt and credit. Debt is the amount borrowed by one party (e.g., corporations or individuals) from another (e.g., banks). While Credit is the lawful agreement in which a borrower receives something of value today and agrees to repay later on in the future, usually with interest. Simply, when you use your credit card, you create debt. Debt here is the result from your ability to borrow – from your credit.

Now that you know the definitions and the differences between these two terms, you must discover the pros and cons of using credit as well as the 3 C’s of worthiness. All these are according to the Credit Bureau Singapore. Credit Bureau Singapore was set up in lined with the Monetary Authority of Singapore’s vision to enhance the public’s risk management abilities.

Image Credits: pixabay.com (License: CC0 Public Domain)

PROS AND CONS OF USING CREDIT

The pros and cons of using credit or credit card are plain and straightforward.

Pros

Being able to buy what you need right away

Not having to carry cash

Automatic record of purchases

More convenient than cheques

Cons

Interest especially for items of higher cost

Have additional fees

Financial difficulties may arise

Elevation in impulse purchases may occur

Image Credits: pixabay.com (License: CC0 Public Domain)

3 C’S OF WORTHINESS

Before swimming in a pile of credit, know if you are worthy to take the plunge by asking yourself a set of questions.

1. Character (Are you the type of person who will repay his or her debt?)

Does your credit history show that you are honest and reliable in paying debts?

Do you pay bills on time? Do you have a good credit score/report?

Can you provide a couple of character references?

How long have you been at your present occupation?

How long have you lived at your present home?

2. Capacity (Are you able to repay the debt?)

Is your job income enough to support your credit usage?

Is your job stable and steady?

How much is your salary?

How many loan payments do you have in total?

What are your current debts?

How many people are dependent on you?

3. Capital (Do you have back-up if you cannot repay the debt?)

Do you have a savings account?

Do you have various investments to use as a collateral?

Can you enumerate the properties that you own to help secure loans?

What other valuable assets do you have that could be used to repay debts?

It is essential to know all these to assess whether you are truly fit to apply for a credit card or loan. Furthermore, you may use the information to guide you in your responsibilities as a borrower. 🙂

Sources: 1 , 2 & 3

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