Take your pick of credit cards

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#1
Be wary of banks pushing you stuff which you don't need! I only have two credit cards, of which one is active and the other dormant. In fact, I plan to cut it down to just one!

*For the full article, please visit the website.

The Straits Times
www.straitstimes.com
Published on Aug 05, 2012
Take your pick of credit cards

Banks dangling wider array of offerings to woo different customers

By Melissa Tan

Consumers now face a dizzying array of credit cards in the market.

Banks have been refreshing their credit card offerings recently to take advantage of Singaporeans' growing penchant for swiping plastic. The latest cards also appear to be targeting the richer and more technologically inclined end of the market.

Just last month, DBS Bank relaunched a card aimed specifically at affluent women - the Woman's World MasterCard, which dangles extra rewards for online purchases and offers priority cab booking, according to DBS.

Mr Jeremy Soo, managing director and head of consumer banking at DBS, said it is meant for "the women of today who are independent, well-travelled and financially and technologically savvy".

This came a mere three weeks after Standard Chartered released a new Singapore Post co-branded card that aims to tap an increasing appetite for online shopping.

"This year alone, we have noticed a stable month-on-month increase of 7 per cent in the number of online transactions, reflecting the increasing pool of e-commerce consumers," said Stanchart retail banking regional head Subba Vaidyanathan.

In April, OCBC launched a Cashflo card which lets cardholders split big-ticket buys into instalments. And Citibank relaunched its Clear Platinum card in March, branding it Singapore's first card with "social networking as a key feature".

Singapore consumers certainly present an attractive target for banks as they increasingly put their purchases on plastic, whether for online or offline buys.

This is reflected in the steady growth in average monthly credit balances over the past decade, according to data from the Credit Bureau of Singapore (CBS).

The average monthly spending per consumer was $4,930 in the first four months of this year, the CBS found. That represents a 51 per cent increase from $3,275 in the decade since 2002.

Credit card offerings are also being designed for increasingly specific consumer segments as banks seek to differentiate their products.

"We don't believe in a one-card-fits-all concept. That is why we have different cards to cater to different customer segments and needs," said DBS' Mr Soo.

Mr Desmond Tan, head of group lifestyle financing at OCBC, said the bank has strengthened its collaboration with "strong retail partners", given the importance of offering differentiated cards to meet different needs.

He said that OCBC has seen a strong increase in spending, mainly in tra-vel, entertainment and the arts.

But dining out seems to take the top spot when it comes to overall credit card spending for Singaporeans.

According to MasterCard, its Singaporean cardholders forked out $30.6 million at restaurants by the middle of the Great Singapore Sale this year, which ran from late May to late last month.

They spent $24.7 million at supermarkets, $21.6 million at fast- food outlets and $16.4 million at department stores, MasterCard said.

Ms Jacquelyn Tan, head of credit payment products at Citibank, said its cardholders typically spent the most on dining and shopping.

A spokesman for UOB's cards and payment products unit said the bank was seeing double-digit growth in cardholder spending on shopping, entertainment, petrol and groceries.

"In terms of our customers' preferences for rewards, we are seeing a growing preference for cash rebates," the spokesman added.

Consumers prefer cash rebates because the money can be used for anything, said Mr Vinod Nair, who set up credit card comparison website SmartCredit.sg

He told The Sunday Times that his website traffic suggested that rewards such as cashback were actually a more important feature for consumers than restaurant perks.

"Most people don't get credit cards because of the dining privileges. Dining privileges are one of those things that are more a matter of convenience whereas cashback is more of a core feature."

He noted that dining privileges had become "quite standard among the bigger banks, which are constantly updating their list of restaurant deals". But the ubiquity of such programmes also makes dining privileges across different banks "extremely hard to compare", Mr Nair said.
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#2
I'm actually of the belief that having a multiple cards is almost even a necessity now. If managed correctly (Read: paid in full every month), the perks are free (Annual fees can almost always be waived) and give you more bang for your buck, the increased cash flow is wonderful when helping with personal accounting / recording / planning a budget.

If one qualifies for a CC, the hard part really is singling out what type of perks he/she wants. Cards invariably compete amongst themselves and some are better at some things, worse at others. It's almost like insurance.. getting the best complements to fit a lifestyle; and for that.. more than 1 card is necessary.
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#3
most of the time, if i offer to pay cash, i can get a 2% discount...

Smile
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
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#4
If you are the Master (in control) of your Credit Card and not the Slave (only pay Min. Sum), the good things,

1) Overseas Travel - Not safe to carry too much Cash
2) Online Purchase - Especially non-local ones (if use Pay-Pal, still need to top up eg. via Credit Card)
3) Dining Discount / Freebies - Can be as high as 10-15% off but usually ala carte items

Try to maintain at least 2 cards and have a good long term record of spending and payment. If you plan to quit working full time, it's not as easy to get a new card anymore.....Rolleyes

PS. A Debit Card may be a better choice for those who're not able to control their spendings...Tongue
Luck & Fortune Favours those who are Prepared & Decisive when Opportunity Knocks
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#5
One card from each bank.
Lots of discount when eating out.
Standchart giving out $80 credit for new card member extend to oct.
free money go apply. 2 yrs later cancel...
The thing about karma, It always comes around and bite you when you least expected.
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#6
If you are the master, instead of slave, and with a rational mind. Credit cards are a good product to take advantages on (free gift, point redeem, conveniences etc)

same applies to debt (leverage) and others Big Grin

If you are slave, instead of master, even good stuff like $ may do harm on you. Tongue
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#7
i have read somewhere that merchants in America started to rebel or refuse to pay the 1% to 3% surcharged by the credit card banks whenever customers used credit card to pay.
So some credit-card banks shifted this "surcharge of 1% to 3% to credit card users.
i am not sure how prevalent is this practice in America now.
"The Land OF Financial Engineering"
Or maybe what i read isn't true.
Local practice by most Sim Lim's merchants is 2% to 3% discount if pay by cash. It's not you can not pay by credit card.

To tell the truth (though they are not suppose to do it) i had discount of up to 3% when i bought a "Rolex Watch" for my wife. It's a lot of 3% of money. Some merchants tell you there is no difference in pricing whether by cash or credit card. So which merchant will get your bacon?
i think the Watches's merchants must "trust" you first before they agreed to this pay by cash 3% discount.TongueBig Grin
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#8
(05-08-2012, 12:01 PM)Temperament Wrote: i have read somewhere that merchants in America started to rebel or refuse to pay the 1% to 3% surcharged by the credit card banks whenever customers used credit card to pay.
So some credit-card banks shifted this "surcharge of 1% to 3% to credit card users.
i am not sure how prevalent is this practice in America now.
"The Land OF Financial Engineering"
Or maybe what i read isn't true.
Local practice by most Sim Lim's merchants is 2% to 3% discount if pay by cash. It's not you can not pay by credit card.

To tell the truth (though they are not suppose to do it) i had discount of up to 3% when i bought a "Rolex Watch" for my wife. It's a lot of 3% of money. Some merchants tell you there is no difference in pricing whether by cash or credit card. So which merchant will get your bacon?
i think the Watches's merchants must "trust" you first before they agreed to this pay by cash 3% discount.TongueBig Grin

This cash discount practice has been around for the past more than 30 years , especially in HK when you walk into a camera or watch shop. Not a secret at all.
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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#9
2 cards. One Visa, one Master. Both no annual fees ever.
One for local use. The other for overseas and online purchases where likelihood of fraud etc is higher.
I don't spend enough to justify any "savings". Smile
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#10
Card from taka-DBS, DBS, uob, HSBC and citi. So many card to make sure I usually will get discount for f&b. Taka card as it is 6% rebate in vouchers and free Parking. Uob/DBS as they offer 1.6 miles per dollar spent. Overseas is 2.5 miles. Works out to about 5-8% rebate on all spending if we spend points on krisflyer and fly business class to USA or Europe annually. based on experience, miles conversion is the way to go.
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