What is SGX (Singapore Exchange Limited)?

What is SGX (Singapore Exchange Limited)?

Are you curious about SGX? What is it all about? How does it work? Get answers to your questions as we discuss more of it.

Investing has been catching the attention of Singaporeans nowadays. Singapore Exchange has finally introduced a minimum trading price (MTP) for Mainboard companies. As a result, more investors can now access SGX. If you are a beginner, here are some things you should know.

SGX Singapore Exchange Ltd

On 1 December 1999, the SGX was founded as a holding company. Eventually, it took over the stocks of the Stock Exchange of Singapore (SES), Singapore International Monetary Exchange (Simex) and Securities Clearing and Computer Services Pte Ltd (SCCS). Then, SGX issued SGX shares to the existing shareholders of the three companies.

SGX provides depository, listing, clearing, trading, settlement, and data services. Also, it has 90% of listed bonds and 40% of listed companies outside Singapore. Therefore, SGX is the most internationally connected exchange.

SGX Singapore Stock Exchange Prices

The Market Price is the most current price of the asset or service. It can either be sold or bought. Also, it is greatly dependent on the supply and demand forces involved in the market. Therefore, the price depends on how the traders, dealers and investors interact. Furthermore, the difference between the bid and ask is called the spread. The more buyers, the higher will be the bid due to increased demand.

Moreover, the trade involves selling and buying. The traders buy the stock from the dealers. However, this does not necessarily mean that the dealers own the stock. Often, the dealer only represents other traders who specify the order limit. The dealer logs the order in the order book until the market finally reaches the order price. Then, the dealer will execute the order. In addition, the dealer can quote the market price with the bid and ask price. The ask is always higher than the bid. Why? The asking price will be the selling price, while the bid is the buying price.

Straits Times Index (STI) keeps track of the market capitalisation of the SGX top 30 companies.

Performance of Top 30 companies for the past 5 Years according to market price:

SGX Academy Singapore

SGX gives education and professional training to investors at various levels. It ranges from beginners to professionals. In addition, it aims to provide investors with the right knowledge to enhance their capabilities to be traders. 

Also, SGX Academy continuously creates programmes and E-trainings. Plus, you can watch videos for free basic e-training on sgxacademy.com.

For beginner investors, SGX teaches the fundamentals of investing. The Intermediate Investors can learn the various investing methods and instruments they can utilise. Also, SGX has other programmes for savvy investors. These are lessons on instruments and techniques they can use to future grow their investments.

SGX News Singapore

SGXNews via XML

Corporate statements and actions are delivered in real-time through the client’s system interface. In addition, it helps the clients understand the news and quickly get the most important information. Also, the statements have integrated a consistent structure in ISO20022 standard format. This way, it can spread crucial information quickly to concerned investors and traders. Moreover, it is ideal for information vendors, institutions, trading firms and independent software vendors.

SGXNews via SWIFT Network

SGXnews utilises the SWIFT Network using ISO15022 standards to keep clients aware of corporate events. Furthermore, broadcasting 37 different types of corporate action events assists the end-users in processing their market events accurately. Plus, it ultimately lessens the operational risks. Thus, making it ideal for wealth managers and central securities depository/custodian service providers.

SGXNews – EOD Corporate Actions

The design supports the client’s Straight Through Processing (STP) environment. As a result, data dissemination can be very cost-effective. Plus, it is delivered through e-mails. Moreover, it is for those not using the SWIFT. In addition, it is for anyone who wants to get the golden information. Plus, it can potentially affect their portfolio.

SGX Catalist Board Singapore Stock Exchange

Catalist companies are directly under the supervision of sponsors. These are experienced companies in corporate finance. In addition, the catalyst has been created to support companies seeking to be fast-growing enterprises. Therefore, qualified sponsors present the initial list of the Catalist through an initial public offering (IPO). In short, the sponsors create the list using their criteria.

Catalist Listing Requirements

Review of Listing Documents

Sponsor & SGX

Quantitative Requirements

SGX requires no minimum quantitative criteria. Sponsors will use their own house deal selection criteria. However, an adequate amount of Indicated Resources for a minerals company and Contingent Resources for an Oil & Gas company are required.

MOG Requirements

Admission standards for MOG listing aspirants that are not in production

Also, a MOG listing aspirant that is not in production seeking a listing has to satisfy the following conditions

  • Discloses its plans, milestones and capital expenditure to advance to the production stage

Requirements for all MOG companies

  • Have at least achieved Indicated Resources (for Minerals). Or secure Contingent Resources (for Oil & Gas)
  • Have sufficient working capital for 18 months from listing

Shareholder Spread

  • 15% of post-invitation share capital in public hands;
  • Minimum 200 shareholders.

Independent Directors

2 independent directors. It must have a minimum of 1 Singapore resident independent director for Foreign Companies.

Moratorium

  • At the time of IPO, if promoters hold more than 50% of the post-invitation share capital, they may sell. But must retain at least 50%. If they hold less than 50% of the post-invitation share capital at IPO, they may not sell any;
  • After IPO, promoters cannot sell their shareholdings for 6 months. However, they may sell up to 50% of their shareholdings after that for the next 6 months;
  • For Pre-IPO investors who acquired their shares within the 12 months before IPO. Also, the “profit portion” of their shareholdings is subjected to a moratorium period of 12 months after IPO;
  • Promoters of a MOG company are not to sell any of their shareholdings for 12 months after IPO.  But, they may sell up to 50% of their shareholdings for the next 6 months.

IPO Documentation

  • Offer Document;
  • Include a 12-month working capital sufficiency statement from the issuer’s directors and Sponsor;
  • Lodged on SGX Catalodge website.

Accounting Standard

Singapore, US or International Accounting Standards

Domicile

At the discretion of the issuer

Business Operations

No requirement for operations in Singapore

Continuing Obligations

  • Rules relating to disclosure of material information, periodic reporting, additional share issuance, corporate transactions, corporate governance guidelines, interested person transaction and free float will apply.
  • The additional requirement to retain a Sponsor at all times will apply to Catalist companies.

Listing Fees

Initial

Minimum

$30,000

Maximum

$100,000

Variable Rate Per S$ million

$100

Basis

Market Value

Administration

$2,000

Annual

Minimum

$15,000

Maximum

$50,000

Variable Rate Per S$ million

$25

Basis

Market Value

SGX Singapore Address

Singapore

2 Shenton Way,

#02-02 SGX Centre 1,

Singapore 068804

 

11 North Buona

Vista Drive,

#06-07 The Metropolis Tower 2,

Singapore 138589

Tel. +65 6236 8888

Fax. +65 6535 6994

 

Central Depository  

9 North Buona Vista Drive

#01-19/20 The Metropolis

Singapore 138588

Tel. +65 6535 7511

Fax. +65 6535 0775

 

Beijing  

No. 6 Wudinghou Street, Excel Centre,

Unit 1905-A Xicheng District,

Beijing 100032, China

Tel: +86 10 6629 0660

Fax: +86 10 6629 0110

 

Shanghai  

No. 168 Yincheng Zhong Road,

Room 25 and 26, 21F, Bank of Shanghai Tower,

Pudong Shanghai 200120, China

Tel: +86 21 5116 7230

Fax: +86 21 5116 7116

 

Europe & N.America  

12 Floor, 30 Crown Place,

London EC2A 4EB

Tel: +44 207 856 2507

 

Hong Kong  

Unit 12B, 12/F

No. 33 Des Voeux Road Central

Hong Kong

Tel:+852 2236 3000

 

India  

The HUB 17th Floor, Tower 2B,

One India Bulls Centre,

Senapati Bapat Marg,

Elphinstone Road,

Mumbai 400013

Tel: + 22 6189 9845

Fax: +22 6189 9900

 

Tokyo  

Level 27, Shiroyama Trust Tower,

4-3-1 Toranomon, Minato-ku, Tokyo

105-6016 Japan

Tel: +81 3 5403 4680

Fax: +81 3 5403 4646

 

SGX Customer Service

SGX Hotline

Monday to Friday 8.30 am to 5.00 pm

Saturday 9.00am to 12.30pm

Closed on Sundays & Public Holidays   (65) 6535 7511

 

SGX CDP Customer Service

Monday to Friday 8.30 am to 5.00 pm

Saturday 9.00am to 12.30pm

Closed on Sundays & Public Holidays

SGX Singapore Careers

SSGX is currently in need of individuals who can fill in the spot of the following positions.

  • Assistant Vice President, Business Planning and Analysis (6 months contract)
  • Assistant Vice President/ Vice President, Media Communications (9 Months Contract)
  • Senior Associate/Assistant Vice President, Investor Services
  • Client Manager for Institutional Brokers/Members
  • Corporate Secretariat, Compliance & Risk Management Executive
  • Customer Onboarding Specialist (12 months contract)
  • Fixed Income Sales Specialist
  • FX Specialist
  • Head of Compliance
  • Index Product Development
  • Senior Associate, IT Auditor
  • Senior Associate/ Assistant Vice President, Market Surveillance (DT)
  • Vice President, Business Planning & Analysis

If you want to gain a wide exposure to SGX, potentially have an attachment with one of the senior management offices. Or you may get a chance to work with other SGX external industry partners. Then, you can join the SGX Management Associate Programme (Open Track). Although the industry is vast, you can use the program to know which area can be your niche. For example, you will have a task to participate in business projects and special assignments personally. In addition, you will delve into the perspective of the organisation and the financial industry.

A sample rotation schedule in the MA Programme (Open Track):

If you are a fresh graduate interested in capital marketing, you can try the SGX Management Associate (Technology Track) Programme. The 2-year rotation programme design gives you exposure to technical and business understanding of the company. With a senior manager as a mentor, you can have continuous personal guidance. The end of the program will put you in the best position suited for you. Just submit your resume and wait for the reply to enrol in the program.

Conclusion

If you want to invest in the Singapore Exchange, you have to get to know the basics. So enrol in the SGX academy and research online. It takes patience, time and money to get involved and start your journey as an investor. So there is no better time to start than now. Get a personal loan in Cash Mart and receive your cash within the day to finally make your first investment in SGX.

Look Out for the Best Credit Card Christmas Deals

Watch Out for the Best Credit Card Christmas Deals

Christmas gives you a perfect excuse to go shopping. Get the best credit card Christmas deals this holiday season.

In addition, Christmas gives you a perfect excuse to go shopping while the banks have the right reason to entice you with the best credit card deals. Discover these promos before the year ends.

Maybank

  • Still not done wrapping your Christmas gifts? Take them to Maybank’s participating branches at Northpoint, Waterway Point, Jurong Point, and NEX mall until 24 December 2016. Do not forget to show your charge slips to avail the free gift wrapping.
  • Going somewhere before the year ends? Get a $50 cash rebate when you charge at least $1,500 worth of Singapore Airlines ticket purchases. To claim your rebate, you must send an SMS with the code MBSQ and your name, NRIC, and quantity. You can only redeem your rebates twice.
  • When you go shopping overseas, you can earn a $70 cash rebate to purchase at least $1,000 with your Maybank Credit Card. Do not forget to send an SMS to 79898 containing the keyword “OSR,” your name, and quantity. You only have a maximum of two redemptions.

Maybank Singapore | Watch Out for the Best Credit Card Christmas Deals

Standard Chartered

  • You can get a 15% cashback when you charge a total minimum spend of $5,000, including online and overseas purchases. However, you must remember that the cashback is capped at $150.
  • With every charge worth $150 or more in just a single eligible transaction, you will get a chance to play. You can only have one chance a day. So do not forget to register either online or through SMS.

Rewards

  • You can take home a Samsonite Casso 28” Spinner luggage if you spend a minimum of $8,000 up to S$15,999. However, be mindful to check if it is still available during your purchase, as it is only given to the first 3,500 cardholders.
  • If you want to spend quality time with your significant other, you might be lucky if you are one of the first 1,000 cardholders who spent S$16,000 and above this season. Then, you can avail a free overnight stay in the Wonderful Room at W Singapore – Sentosa Cove.
  • You can have a chance to win two Singapore Airlines Suites tickets to fly to Paris. For the first $1,000 spent, you get 10 chances. Then every S$100 spent will give you one additional chance. However, if you purchase less than S$1,000, you won’t be qualified.

Standard Chartered | Watch Out for the Best Credit Card Christmas Deals

DBS / POSB

Redeem instant gifts with the DBS Lifestyle app with every single-receipt purchase of at least $250. Note that you only get a chance to play once a day, and only 1000 cardholders can register per day.

On your first to the fifth redemption, you can get S$5 cash credit. It will increase to S$10 on your 6th to 10th redemption. Should you redeem 11 times or more, you will get S$15. Aside from cash credit, you can also choose other special gifts such as a free stay in The Fullerton Hotel Singapore, a dining voucher at The Ritz-Carlton Millenia Singapore, Wing Tai Retail shopping vouchers, and AirAsia BIG Points.

Do not forget to refresh your DBS Lifestyle app. Tap “Christmas 2016 Spend & Redeem” to register and start the game. Select a gift box to get your e-coupons and redeem your gifts.

POSB Credit Cards

Citibank

To qualify for Citibank’s holiday promos, you have to register by sending the SMS to 72484 using your Citibank registered mobile number.

Spend & Get

If you are one of the first 1,000 registered cardholders to spend at least $5,000, then you are eligible to take home the 20” Travel Luggage (K-2SO). Or, if you are one of the first 2,000 cardholders to spend S$2,000 to S$4,999, you will get the Duffle Bag (Death Star). The promo will end on 26 January 2017.

Trip-for-2 to Orlando for the STAR WARS Celebration

With every S$50 spent with your Citi Card, you will get a chance to win a pair of roundtrip tickets to Orlando on April 12, 2017. It includes five nights and six days of hotel accommodation and a US$200 spending spree at the Disney Store.

Citibank Singapore | Watch Out for the Best Credit Card Christmas Deals

OCBC

  • You can get 20% off of your total food and beverage bill at the Fairmont Singapore, Antidote, provided that your payment is fully charged on your OCBC credit card.
  • Get 10% off of Swensen’s / Earle Swensen’s ice cream log cakes from 12 Dec to 25 Dec 2016.
  • Receive 8% off from your hotel accommodations in Singapore, Macau and Hong Kong. Other hotel feelings in any other destinations will be deducted by 7%.
  • By entering the voucher code, you will be entitled to 10% off your hotel bookings on expedia.com.
  • You can have $10 off with the $80 you spend when shopping in any Royal Sporting House Outlets. However, it is only valid for the first 3,000 eligible customers.
  • Lazada gives $7 off with at least $50 spent. If you are a new customer, you will get $10 off.

OCBC Credit Cards in Singapore

HSBC

You must first register your card by creating an SMS: Christmas16-digit credit card number, then send it to 74722. Then, charge your Christmas purchases on your card, but you must reach the minimum spend to qualify.

You can get $10 CapitaVouchers with every $500 charged on the card. Note that you can only acquire a maximum of 5 vouchers.

HSBC Singapore | Watch Out for the Best Credit Card Christmas Deals

UOB Credit Card Christmas Deals

  • Get 15% off Cold Stone Creamery log cakes until 31st Dec 2016. You must order the log cake 3 working days in advance.
  • If you are going out of the country, spend a minimum of $300 overseas and earn 2.4 miles for each $1 spent.
  • Get 5 to 10% off from Dean & DeLuca Christmas related purchases until 29 Dec 2016.

UOB Credit Card Singapore

Christmas is inevitably coming faster as we prepare our gifts and parties. If you prefer cash for your holiday shopping, get a quick cash loan from Cash Mart today.

What You Need to Know About Credit Cards

What You Need to Know About Credit Cards

Singaporeans are not new when it comes to credit card use. In July 2016, 7,940,471 credit cards existed in the city-state, excluding the supplementary cards. Since most Singaporeans have a personal bank account, you must have encountered the enchanted card called Credit Cards. It seems that you can avail anything with a single swipe. First, however, you must understand what it really is to be able to maximise its use and prevent caving into shopping temptations.

Credit Cards in Singapore

Credit Cards are unsecured loans offered by banks with terms and conditions, which can get tricky. However, many credit card programmes offered in Singapore also have various appealing perks. Though it seems you can purchase anything just by swiping these plastic cards or sending their details to online merchants, you must remember that it has a credit limit. You can shop both in establishments and e-commerce sites with a credit card. Also, you can use some credit cards to withdraw cash from ATM branches. The biggest credit card issuers are UOB, Citibank and DBS Bank.

To understand how credit cards work, you must know the parties involved every time you use them for transactions. Cardholders are the individuals authorised to purchase goods and pay for services through credit cards. Cardholders include your spouse and kids with your supplementary cards. The consumer finance companies and banks which issue credit cards are Card Issuers. The merchants are the shops and e-commerce sites you transact with.

When you buy something online with your credit card, the bank (Merchant Acquirer) will process the transaction with POS terminals. Credit Card Organisations are the middlemen who link the merchant acquirers and card issuers. These are the logos you see on your cards, such as Visa and MasterCard.

what you need to know about credit cards

Credit: https://therantingpanda.com/2018/10/18/snippets-battle-of-the-visa-infinite-credit-cards-in-singapore-the-low-down-of-each-card-and-which-visa-infinite-credit-card-should-you-get/

General Types of Credit Cards

General Purpose Local Currency Credit Cards

These are the standard cards categorised as classic, gold and platinum, which you can avail of depending on your salary range and creditworthiness. Once your credit card gets approved, your spouse and children can have supplementary cards. If you use your card overseas, all your transactions will be converted into Singaporean Dollars, and you will be charged 1% to 2% for a foreign transaction fee. The bank will establish the credit limit according to your finances.

 Prepaid Credit Cards

These are cards not tied to any existing checking account. Thus it does not help with building up your credit score. You only need to load money onto the card to be able to use it to purchase stuff or pay for services. There are no minimum payments since all your purchases will be deducted from your card’s balance. You can renew your spending limit by reloading your card.

Limited Purpose Credit Cards

Limited Purpose Cards are used for large merchant partners such as stores and gasoline stations. Use these credit cards with minimum finance charge and payments. Some known Limited Purpose Cards are Takashimaya Cards and DBS Esso Card. Depending on the rules, limits and restrictions of the cards, you can earn discounts, points, privileges and even airline miles which can also expire if you don’t use them.

Business Credit Cards

People in business need to keep their transactions separate from their personal life. That is why business credit cards are designed for them.

Student Credit Cards

The design is for college students who do not have any credit score history yet, and it is their first time being a credit card applicant. In addition, the cards may come with various perks, such as low-interest rates on balance transfers.

Cashback Rebates

These are rebates you get every time you use your credit cards in a transaction. The accumulated rebates may be credited each month or per quarter of the year. The more spending you do, the more rebate you can get as the general rate range from 1% to 3%.

Reward Points

Reward points are part of a loyalty scheme to attract more customers to the business. Each merchant can have a different set of terms and guidelines with the pointing system. The points can then be exchanged for air miles, gifts and vouchers.

Credit Card Interest

When comparing credit card monthly interest charges, use the Effective Interest Rate (EIR), which usually ranges from 25% to 28%. Various banks start charging interest rates at various periods. Some banks start charging a month after your credit card gets approved, while others start later.  It is an interest-free period. Your grace period will be forfeited if you fail to pay your balance from the previous month.

Credit card terms and conditions can be very tricky. That’s why you need to know about credit cards. Ensure you understand all the conditions and know all the costs you incur to prevent outstanding fees. Use credit cards only when you need them the most. If you end up with maxed-out credit limits yet need to make an immediate purchase. Do not fret. You can always get a personal loan from Cash Mart.

Singaporean Household: Cost of a Foreign Helper

Singaporean Household: Real Cost of a Foreign Helper

A domestic helper is famous for household chores. But before hiring someone, know how much is the actual cost of a foreign helper.

Whilst Singaporeans are very hard working to provide for their families. They have very limited time for household chores: from taking care of the laundry to walking the dog every day. Thus, having a foreign domestic helper has been popular to keep the household in order.

Why are we reliant on maids?

Taking care of elders

While there are nursing homes for the elderly, many can’t afford such facilities and having a maid is way cheaper for them. Thus the government gives tax deductions to those who hire maids to care for their elderly parents. Instead of paying the monthly levy of $265, they are only required to pay $60 a month.

Long working hours

Since Singaporeans are known to have great dedication to their work, they have very little time with the household. They sometimes take home some of their work which they deal with after putting the kids in bed. Thus the work-life balance has been too much altered. There is a slight possibility of having still the energy and time to deal with vacuuming the floors and cooking.

Many don’t know how to cook.

Many Singaporeans are used to eating out because they lack practice when it comes to kitchen matters. In the Electrolux Asia Pacific Food Survey in 2014, 65% of Singaporeans admitted that they think they have limited or disastrous cooking skills. While singles can still handle eating in restaurants and fast-food chains, those with children have to resort to getting a maid.

Hiring a foreign domestic worker (FDW) is a standard solution to taking care of most house-related activities. However, you must know that the Ministry of Manpower has strict regulations for hiring FDWs.

Ministry of Manpower in Singapore | The Real Cost of a Foreign Helper

Before you start applying for a work permit for an FDW, you must know your helper’s biographic data such as name, age, nationality and other passport and personal details. MOM will also require you to identify the personal information of everyone living at your address.

MOM assesses applications strictly by income. So naturally, you can only hire a helper if you can afford it with your current income. However, there are certain exceptional circumstances.

Sponsorship is when an elderly at the age of 60 wants to hire an FDW, yet there is a lack or absence of income, and he/she has no other living adult with him/her. MOM will assess the application based on the sponsor’s (children, grandchildren or siblings) income.

Another way is through Joint Application. The employer can combine income with an immediate family member (other than the spouse) living with them at home.

Foreign domestic worker eligibility

Generally, the FWD must be a female aged 23 to 50 years old from the government-approved country. In addition, it must have a minimum of 8 years of formal education with a recognised certificate by MOM.

You may interview your potential FDW. Ask about their strengths and weaknesses. Also, test the appliances they know how to use. In addition, assess their household skills like cooking. Furthermore, know their motivation for work. See if they have children to create an understanding of her goals further. Finally, determine their level of English language. While some are good at English during the interview, many still struggle with everyday use. While interviewing, you may also be upfront about your expectations and other particular household rules.

Are you Eligible to hire an FDW?

While there are a set of eligibility requirements for FDW, employers also have theirs.

To apply for an FDW, you must be 21 years old, have never been bankrupt, and have the full mental capacity to discharge your responsibility as an employer. In addition, as a first-time employer, you are required to attend an Employer Orientation Programme (EOP) before you apply for an FDW.

The Cost of a Foreign Helper:

  • The monthly salary is about $500 or more per month. Note that the salary depends on the agreed salary multiplied by 26 days per day.

$500 x 12= $6,600

  • The monthly Maid Levy costs $265. However, remember that the levy for sponsored applications is only $60.

$265 x 12 =    $3,180

  • Maid Agency Handling Fee: S$2000/ or more as a “package” for a “new maid.”

The package costs around $1500 – $1800 for “rehire maid” or helpers who already have a record as an FDW. These costs vary depending on the agency. However, choose carefully which agency you will use. Again, try to look for feedback on the agency’s website and social media accounts.

  • First, Time Employers have to undergo an Employer Orientation Programme with an online test set costing $40
  • Settling-in Programme – $75 for first time FDW
  • Work Permit application – $30
  • Work Permit issuance – $30
  • Security deposit – $5,000
  • Medical Insurance coverage – minimum coverage of $15,000
  • Personal Accident Insurance – minimum coverage of $40,000
  • Paid Day Offs if included in the agreement. Day Offs maybe 2 to 4 days per month, and on Sundays.

Total:    $71,355

Conclusion

Hiring a new FDW will cost you $ 71,355 in the first year. However, as different employers have various agreements with their FDW concerning lodging, food and other miscellaneous expenses, these are excluded from the calculated costs.

Now you know the real cost of a foreign helper. Do you seriously need extra help in your household? Do you need more cash to start applying for one? You can start your loan application now, as Cash Mart can give you cash disbursement today. So visit the Cash Mart website and start filling up the loan application to experience the fast and smooth loan process you deserve.

Mutual Funds: What Are They?

Mutual Funds: What Are They?

Mutual funds are thought to be synonymous with investments. But do you really know what it actually means and how it works?

Investing always gets hold of Singaporeans’ interest. People tend to value finding alternative ways to earn more and save more. Folklore of Finance research proved it when Singaporeans topped the financial literacy test. However, only 5 per cent of investing Singaporeans genuinely believed they were ready to achieve their investments goals.

According to the same research, Singaporeans often give credit only to themselves for successful investments. 66% of investors claim that their best investments are only due to their decision call. It only reflects that most investors do not value the importance of soliciting professional advice. Also, they do not value getting further education on investing. Since there is a very high level of pride, they are usually afraid to ask questions about things which seem to be common knowledge among other investors.

If you usually ride the MRT, there is a high chance you have encountered sleek looking financial advisors. They try to sell mutual funds, which seem synonymous with investments. However, most Singaporeans will not admit that mutual funds puzzle them. So, here are the basic things you must know.

Mutual Fund is a Portfolio

A portfolio is a collection or grouping of financial assets. It can be bonds, stocks, funds counterparts, and cash equivalents. Moreover, investors keep their own portfolios. It includes Risk Tolerance or the level of returns variability the investor is willing to withstand and the investment objectives.

Mutual funds itself is a portfolio of assets. However, unlike personal portfolios, it contains collective investments involving hundreds of people. In addition, it gives small investors access to financial assets managed by professional fund managers.

Though this involves a lot of people, each one has an equal proportion of gain or loss. They can access the portfolio and see the investment objectives, which should ideally match its prospectus. Funds have an obligation to declare information that may affect the investors’ decisions.

You can purchase the mutual fund units at the fund’s latest Net Asset Value (NAV). NAV calculation is by dividing the total value of the securities in the whole portfolio by the total number of outstanding shares. However, investors cannot just sell their units at their whims. Why? Usually, there are rules on the number of units to be sold and when they can sell these.

Active Advertisement

Why do you usually hear about mutual funds? Also, why are they aggressively advertised? There is a rave of mutual funds advertisements these days mainly because you can make lots of money with them. For example, if a fund manager is entitled to 1% of the portfolio’s assets a year, it may not seem that big. However, if the assets total $40 million a year, $400,000 will go to the fund manager.

Another reason why it seems to capture the interest of many is the usual behaviour of Singaporeans when thinking about retirement. But, of course, everyone wants to secure retirement at ease. Or even better: an early retirement with the least financial worries.

Which Mutual Funds Should You Get?

There can be various lists of top mutual funds existing on the net. However, you should be mindful of how you will choose the one to invest in. Do not just invest in the first mutual fund you encounter. It is better to research its annualised returns over a 10-year period. While a fund manager holds the mutual funds well, that person may not stay there forever. You can change the person managing the fund in a few years’ time. Thus, the performance of the assets in the market may quickly change. It is better to see its performance for ten years to give you a more realistic idea of how it will fare in the future.

Not all mutual funds will show you their comparable rate of return. Therefore, it is better to ask for its Total Expense Ratio (TER). TER is the amount of money you are paying for the management and marketing of the mutual fund. For example, if the fund returns are at 6%, yet the TER is as high as 3%, you gain 3%. Various mutual funds have different TER fees.

Mutual Funds Eligibility

The Monetary Authority of Singapore (MAS) strictly monitors Collective Investment Schemes (CIS). Therefore, check the list licensed by MAS when choosing a mutual fund. It only ensures you that your investment will be a legitimate product that is not blacklisted. However, this does not guarantee that this is a quality mutual fund that will yield high returns.

No matter how believable and promising a mutual fund, it is unregulated. So then, your investments are not secured. That’s why it will be hard to go after the responsible people. It is better to talk with a financial advisor to assure diversification. Some investors buy the same assets just. Why? They don’t research well as some shares go in different names, yet from the same company.

Reselling Mutual Funds

Reselling mutual funds may have specific guidelines. So to avoid incurring penalties, check the mutual fund regulations concerning to whom can you sell specific units. While mutual funds can be an excellent investment to save up for the future, they may also damage your finances if you are not careful. If you do not understand the product, it is best not to buy it.

Do not miss the chance to strike a great deal on investments if you find an opportunity to strike a great deal. Get a personal loan from Cash Mart.

Understand Credit Card’s Fine Print in 10 Minutes

Understanding Credit Card’s Fine Print in 10 Minutes

Before you sign the thin line to get your card, you must fully understand your credit card’s fine print. Here’s how.

So you finally decided to get your very first credit card. So, of course, you are excited to use it for shopping galore. Why? There are cashback, rebates and rewards. Thus, you’ll maximise the perks only the majestic card can provide.

But do you know how your credit card actually works?

If you are walking blindly in a narrow alley, you will probably end up hurting yourself. You don’t know where you are going. The same goes for using a credit card.

Without fully knowing how it works, you can’t enjoy its full benefits. In addition, you will even waste your hard-earned money. So however complicated it may seem, never skip reading the credit card’s fine print.

Importance of Credit Card’s Fine Print

credit card's fine print

Credit: https://www.midascommunications.com/news/pci-compliance-call-recording-explained/

J.D. Power Reports conducted a study in 2015. He discovered that 85% of Credit Card primary holders do not understand the terms of their credit cards.

Moreover, they are not fully satisfied with their credit cards. That’s why there are unlike those who know how to use their full potential.

Interestingly, Singaporeans are travel-savvy. Yet the study reveals that they do not understand some of the credit card’s fine print. Typically, it is the section about the foreign currency and the transactional fees.

Added to the complexity of the rewards program, most people just focused on the perks. But, most importantly, they look forward to the Cashback reward.

You need quickly understand how your credit card works. Therefore, you must know the usual four parts of the credit card’s fine print.

Credit Card Foreign Transaction Fees

You pay for the signature shirt you bought in Thailand. Your mind hurries to convert the actual price into Singaporean Dollars. But, then, you will be surprised why it didn’t match your bill.

When you use your credit card in another country, the amount charged by the merchant is first converted to US Dollars. Afterwards, it gets converted to Singaporean Dollars. The conversion will largely depend on prevailing wholesale interbank rates and government-mandated rates.

Aside from the uncertainty of the conversion amount, your bank will charge you a transactional fee. Usually, it is 1% of the purchased amount. Then, you will also have a charge from Visa, MasterCard or Amex. But this time, it is on its own charge system. That is the reason why you will be charged higher than expected.

Credit Card Rewards

Don’t get excited with rewards points yet. First, you have to know how many points you will earn for every dollar you spend. Different cards have their own terms. If you do not understand it, you might lose some points you could have accumulated.

Some cards require you to spend on their specific partnering merchants. Others even double your points according to their terms. Therefore, it is practical to watch out for seasonal promos, especially during holidays.

It seems easy, right? However, do not get carried away with collecting rewards points. Also, you have to check the maximum number of points allowed to accumulate within a year.

Make sure the rewards and freebies you earn suit your interest and lifestyle. So you can further enjoy the perks. Though you may have accumulated many points, you can only redeem those included in the bank’s rewards catalogue. Banks have different redemption schemes. For example, it requires a number of points before getting your reward. The same goes for a high cashback rate.

For example, UOB requires their holders to earn 750 points to avail of a $10 voucher. ICBC, on the other hand, requires 6000 points in exchange for its $10 voucher.

Credit Card Interest-Free Periods

Credit card holders have grace periods for them to pay their bills. There is no charge with an interest rate despite missing the scheduled payment date. DBS gives a 20-day grace period while others provide more. Also, if you fail to pay the full amount in time, you will not be charged with any interest. That is why you have to know your credit card’s grace period.

Credit Card Interest Rates

You have to be careful when calculating the charged interest rate. It is better to depend on the effective interest rate per annum. It is more accurate than the monthly rates.

Does a credit card advertises 25% per annum? Your monthly surcharge will be 2.08%. So say if your credit card payment is $2,000 due on October 5th. But you missed it. You will have a charge with a daily interest of 25% per annum.

You have to divide the 25% by 365 days to get the daily interest. It means that your daily interest is 0.068%. Multiply the total bill amount for your daily interest. Then, you will get the additional fee you have to pay because you failed to pay on time.

If you fail again, you have you multiply 0.068% by your new outstanding balance. Then, add it up again. Furthermore, it only applies if you can pay the required minimum payment.

If you fail to pay the required minimum payment, the interest rates on your credit card increase. It is by 4% per annum (25% + 4% = 29% will be your new interest rate).

Computing Interest:

  • The credit card payment is $2,000 due on October 5th, but you missed it.
  • You have a charge with a daily interest of 25% per annum
  • 25 divided by 365 days = 0.068% will be your daily interest
  • $2,000 x  068% = $136
  • You have to pay $2,136 on October 6th
  • If you missed again: $2,136 x  068% = $145.25
  • You have to pay S$2,281.25 on October 17th

If you need to make an immediate payment in cash, you can get the best personal loan from Cash Mart. Cash Mart is a licensed moneylender who makes sure that you understand everything about the contract before you sign. This way, you will know to best to use your loan and keep your credit score healthy.

Low Interest Personal Loans

Low Interest Personal Loans

People get low interest personal loans for various reasons. Some call it for emergency needs, while others want to boost their credit score. It is handy even for business owners who want to kick start a micro business.

Low interest personal loans are helpful for those who are not confident in getting a loan from banks or borrowing money from their friends and relatives.

What is Personal Loan?

Personal loans are unsecured loans usually used for immediate cash needs. It is quite handy if you can’t pledge property such as a home or vehicle. And since there is no collateral, the process will be shorter. Nobody is sure about his/her finances. There will be times when a cash need suddenly pops up when you think your finances are perfectly balanced.

Good thing there are personal loans within easy reach. You can use personal loans in a myriad of ways. For example, you can use it as a bridging loan to pay for your car’s downpayment. Also, you can use it to buy gadgets, consolidate existing loans and even add it to your emergency cash for your trip abroad. There will be many options, but not all will have competitively low interest rates.

Benefits of Personal Loan

There are various types of personal loans. Some are multi-purpose, while others have specific use. Before applying for a personal loan, make sure that you have a clear purpose. This way, you will be able to use it smartly.

Some Singaporeans use a personal loan to pay for their car’s minor repairs. There are times when a minor car repair can make you lose your No Claim Bonus insurance policy. It means that you can enjoy a benefit if you do not claim your insurance for a certain time. Usually, insurance providers waive some fees or give a 20-50% discount on the premium. Furthermore, it means more savings in the long run. Others use personal loans to consolidate other existing loans.

If you have a couple of loans to pay and have a hard time tracking each due date, a consolidation loan comes in handy. You can use a personal loan to pay off other loans. Then, you just have one loan to pay and track. Another use for low-interest personal loans is for your home’s minor renovation. Do you need to fix a sudden plumbing problem but have no extra budget? Get a personal loan to ease your mind. Even if you’ve got a credit card, there is no denying that there will still be places where you will need to have cash in your pockets.

Credit card cash advances have a steep interest rate charged on you each day until you settle the loan. Also, it is apart from the Cash Advance fee. Also, if you get a cash advance, it will be charged to your credit limit. Therefore, you will need to use your credit card with caution.

How to Avoid Low Interest Personal Loans Scams

Since personal loans are undeniably useful for Singaporeans, loan sharks have used them to milk unsuspecting people with every cent they have. Anyone can fall for the scammer’s sweet words, but you must be vigilant. If the moneylender tells you to make an advance fee before receiving your loan, walk away. It is prohibited for a moneylender to ask for any payment before the approved loan amount is released. A licensed moneylender will either deduct the processing fee from the loan amount or include it in the repayments.

They never ask for upfront fees. Check it the moneylender has a physical location. There are online licensed moneylenders. Processing the loans can start online. It can save your time as you can apply through their websites. However, they must also have an actual office where you can drop by. Having no real office is a clear sign that you are dealing with a loan shark. Do not forget to check the list of licensed moneylenders in Singapore.

The Ministry of Law strictly keeps checking on the compliance of the Moneylenders Act. Also, it keeps the industry fair and competitive aside from protecting both the borrower and the lender from abusive individuals. Another thing to consider is the years a moneylender has been in business. Indeed, a reputable moneylender thriving for decades has a long list of loyal clientele.

Cash Mart: Personal Loans Near Me

Take control of your finances with the low interest personal loans nearest you. Whether you want to pay off outstanding bills, go on a holiday trip, renovate your home, or consolidate your debts, Cash Mart indeed has the best personal loan. Just apply online anywhere you are in the city-state, anytime on the day. Whether you are a high wage earner or have a low regular salary, Cash Mart has personal loans flexible enough for each borrower.

It is further designed to fit money needs for various purposes or reasons. As a reputable licensed moneylender, Cash Mart will walk you through the whole process and give you options to help you find the loan that will fit your preferences. As a licensed moneylender, Cash Mart also believes in transparency. Feel free to inquire first about its loan products. Use the online calculator and navigate through terms to know which one is best for you. Get a loan from Cash Mart today to experience what the best low interest personal loans ought to be.

Why You Shouldn’t Be Scared of Credit Cards

Why You Shouldn’t Be Scared of Credit Cards

Singaporeans are not new to cashless spending. However, some are still scared of credit cards.

Most people are still mindful of its negative reputation. In addition, the widespread stories of individuals who went bankrupt because of snowballed credit card debt. Also, there are a lot of common beliefs circling credit cards. Here are the facts you should know.

Belief #1: Credit card interest rates can cause huge debts

Reality Check: Full repayments are not charged with any interest rate

Many Singaporeans are scared of credit cards because they believe it has high-interest rates, which can cause debt. Credit card interest rates can indeed have around a 2% interest rate. But, this only applies to any outstanding balance. If you pay the whole amount within 27 days, you will not be charged.

Only one in every five Singaporean ends up with unpaid balances. The rest can pay in full.

Belief #2: Credit cards are bad for your credit score

Reality Check: Use credit cards to get the much-desired AA rating on your credit report

Credit cards are unsecured loans you can get from banks. These loans reflect in the credit history. If you are diligent enough to pay your balance in full on time, you are actually nursing your credit score. Banks are more careful when lending to those with credit scores of CX. It means there is no loan history to review. Plus, it will be hard to evaluate a person’s creditworthiness.

Belief #3: Saving is impossible with credit cards

Reality Check: Credit cards often come with rewards, rebates, vouchers and discounts

Most people view credit cards as just spending. Often, they overlook the potential of actually saving with it. Credit cards come with special offers. Examples are freebies, rebates, vouchers and discounts. While a credit card is undoubtedly a payment option, you can get more from it. However, you need to be mindful of what else comes with it. In addition, you can earn free air miles and even cash rebates. Just make sure you do not forfeit these by understanding their conditions.

Belief #4: Credit cards encourage too much expenditure

Reality Check: You can limit your credit to less than your monthly income to control spending

Most people think that when you have a credit card, you have a potential to be a shopaholic. Moreover, people get scared of credit cards because they don’t realise their actions fast enough. For example, you already have an outstanding debt you can never afford with your current salary.

The bank assesses your credit limit based on your current salary and debt history. Therefore, if you want to avoid overspending, it is better to ask your bank to lower your credit limit.

Belief #5: You lose your assets if you fail to pay your credit card

Reality Check: Credit cards are unsecured loans

Since credit cards are unsecured, there is no need to pledge any assets. It means that the bank can not possess in case you fail to repay. Most Singaporeans can pay with their credit cards. However, if worse times come and you cannot pay up, your loan will default. Defaulting due to credit card debt is very rare.

Belief #6: Credit cards attract identity theft

Reality Check: You can do basic precautions to avoid identity theft

You must be careful with whom you give your credit card details. Do not post it anywhere online. Also, never let these details lie around anywhere. Associated Banks of Singapore (ABS) guidelines instruct banks to only have you liable for up to $100 in case of falling prey to identity theft. However, this does not apply to those victimised due to serious negligence.

Dealing with Snowballed Credit Card Debt

If worse comes to worst, how will you deal with your spiralling credit card debt?

Make the Minimum Repayment

You can ask your bank if you can make the minimum repayment because it is impossible for you to pay up the whole balance at once. For example, most credit cards have a minimum repayment of 3% of the outstanding loan or $50. Furthermore, make sure that you can work out with the bank about an alternative date to repay your balance.

Make a Balance Transfer

You can get extra time of around six months to pay your debt. It is possible if you transfer your credit card balance to another credit card with a 0% interest rate. It may seem to put off a lot of weight from your shoulders. But, it will be better if you avoid using any credit cards while still paying your balance.

Consider Using a Personal Instalment Loan

These personal instalment loans usually have an interest rate of 6% to 8%. Therefore, it is quite similar to a balance transfer. However, the personal loan has an interest rate which you also have to pay.

Contact a Credit Counsellor

Get in touch with a Credit Counsellor or organisations such as Credit Counselling Singapore. However, they do not give you cash to pay off your debt. Instead, they can help you devise a customised repayment scheme. This way, you can pay more at ease.

Keep a good relationship with your bank.

Keep in touch with your bank. It means never ignore its mails and e-mails. Also, never resort to legal actions. Banks are willing to help you find ways to repay your balance. However, if you sue them, their priority will shift to protecting the bank’s welfare and not you. In addition, never do any threatening physical harm or verbal abuse to the bank staff. It prevents them from filing legal cases against you.

Do you need cash to pay off your credit card? Prevent it from blowing up with a low interest personal loan from Cash Mart.

Personal Loan: 7 Qualifications to Get Approved

Personal Loan 101: 7 Must-Pass Qualifications to Get Approved

Ever wonder why some loan applications get declined? It’s due to a lack of eligibility. Learn the qualifications to get approved. 

Some Singaporeans are so confident that their loan applications will be approved. But they end up getting rejected for some unfathomable reason. Was it just a bad joke? Did the loan manager wake up on the wrong side of the bed?

Moneylenders and their loan officers are not individuals who approve or decline loan applications out of sudden mood swings. After all, lending is still a business. So parameters have to be put up to decrease lending risk to delinquent clients.

Personal loans are the usual lifelines for most people in the city-state. It is heart-breaking to get rejected when you need it the most. How can you increase your chance of getting approved?

Here are 7 Qualifications to Get Approved

7 Must-Pass Qualifications to Get Approved

Credit: https://www.imoney.ph/articles/personal-loan-application-guide/

Age

The age range is the first thing you will usually see on any eligibility list. Moneylenders lend to income-generating borrowers. Therefore, most moneylenders would give a loan to at least 21 years old up to 65.

Borrowers younger than 21 usually do not have enough credit history. In addition, they just started to earn their first salaries. Also, they are on their first credit cards.

Furthermore, some lenders admit that younger clients sometimes lack a sense of financial responsibility.

Citizenship

Most banks will only approve a personal loan to a Singapore citizen or a Permanent Resident. However, licensed moneylenders offer personal loans to foreigners. What matters is they provide the needed requirements. However, personal loans for foreigners in Singapore have some additional qualifications.

Income

Let’s face the truth. No lender will lend money to someone who has no source of income. How will a person prove that he/she can repay the loan? Take note that there is interest involved. Lenders will question your capability if there is no way to earn enough money. Plus, there are daily necessities to prioritise. If unemployed, expect most financial institutions to decline your loan application.

Most banks and moneylenders require a minimum income. It must be around $20,000 to $30,000 annually. Of course, this range may increase for earning borrowers. However, it depends if you are a foreigner, self-employed, or commission-based.

Credit Score

The Credit score takes a long time to rebuild. It is the history of handling trust from your previous lenders. Some people may wonder why they declined despite the high salary and high rank in their company.

Before you go hysterical, you must understand the qualification to get approved. First, banks and moneylenders tap the Credit Bureau to check your credit score. From there, they see your previous and current loans. Also, it shows your behaviour during the repayment period. So reflect on this question: “How did you handle your past loans and credit card bills?”

Put yourself in the shoes of the moneylenders. A stranger asked to borrow some money. But then, you get to see that he ended the previous loan in default. Will you trust that person’s ability to pay?

Debt

Aside from the credit score, the moneylenders are also particular about the borrowers’ current financial status. Do you have a couple of loans? Tracking them at the same time might be difficult. If you have existing loans, it is still best, to tell the truth. Why? Because they are most likely to find it out. It is one of the common mistakes some borrowers still make nowadays.

Moneylenders may lend to someone with loans such as a car or home loan. However, you have to prove how to handle all your repayments.

Employment duration

For most financial institutions, you must have at least three (3) or four (4) months of employment in your current company. Of course, some financial institutions may not specify the minimum period of employment they require. But it indeed affects their loan decision. So consider these qualifications to get approved. 

Co-borrower Details

Usually, a co-borrower must be a Singapore citizen or a Permanent Resident. Most banks require the co-borrower to be a relative of the borrower. What if you do not have anybody willing to risk their necks for you?

Fortunately, some licensed moneylenders do not require a co-borrower.

Online Personal Loans Requirements

Online personal loans are loans you process online. But still, have to go to the moneylender’s office to sign the loan contract.

This type of loan has a quick turnaround. It takes at least an hour up to 24 hours. Why? The loan managers instantly review the loan application.

Most licensed moneylenders who offer online personal loans also require minimum qualifications:

  • The loan applicant must be aged 21 years and above
  • Singapore Citizen or Permanent Resident
  • Identification Card (NRIC) and SingPass Login
  • The latest proof of billing
  • Latest 3-month original payslip or CPF contribution
  • Letter of employment

Take Note:

  • With this list of qualifications to get approved, you can self-assess which part is your weakness as a loan applicant. Before you apply for a loan, make sure to check the eligibility and requirements of the financial institutions. Also, it helps to know if you have a chance to get approved.
  • If you think you have a bad credit score, find a moneylender who caters to those with low credit scores. Or nourishes it first before applying.
  • Provide complete required documents to assure faster process. Also, make sure that all copies are clear. Plus, all details are consistent.

Being a borrower, it is your responsibility to prove that you are creditworthy. The best way to do this is to be diligent in all your loans.

If you need an online personal loan from a moneylender with personalised loan solutions, you can get it from Cash Mart today.

Top 20 Worry About Credit Cards By Singaporeans

Top 20 Reasons Singaporeans Worry about Credit Cards

Before, Singaporeans were hesitant to use plastic cards for purchase. Unfortunately, they worry about credit cards for the wrong reasons.

We all know credit cards have their benefits and downsides.

However, if you just keep on scaring yourself with common misconceptions. These have been deeply rooted in society. You will fail to maximise and enjoy its use.

Arm yourself with enough knowledge and not worry about credit cards. You will be surprised how much you have been missing out on. In addition, too many doubts and wrong beliefs hinder you from immense benefits. 

20 Common Worry About Credit Cards And Myths

Here is the common misconception which makes you worry about credit cards.

I can’t afford the interest rates.

Yes, the interest rates can range from 22 to 25% per annum. But, you won’t be charged any interest rate as long as you pay your dues on time. Also, you can avoid the compounding interest rates. Just make sure that you can pay your credit card bills diligently.

A credit card puts me in debt.

A credit card is a short term personal loan you get from banks. Every swipe means your bank is paying for the purchase you made. Afterwards, you are given enough time to pay for it on or before its due date.

You have control over how much your bill is. Why? Because you are the one shopping. Never swipe for things you can’t afford to pay in cash. You won’t be in debt if you can control your shopping impulse.

The debit card has the same use and benefit.

Many people believe that debit cards and credit cards are of the same use and benefit. They thought it was about cashless payments. However, they are wrong. Every time you use a debit card, it will deduct the charged amount from your savings in the bank. It means that you use the money you already have.

On the other hand, when you swipe your credit card, you get a short-term loan. The bank gives you several days to settle the bill.  Unlike credit cards, debit cards do not offer rewards, free Miles, and cashback.

I know people who ended up buried in debt.

There are various reasons why people end up in debt. For example, some credit card holders swipe beyond their capacity to pay. Meanwhile, others fail to settle their bills on time, which results in late interest rates. Also, some Singaporeans use the credit card cash advance without knowing its risks.

Reading the card’s terms and conditions is best before signing up.

The debit card is safer.

We usually hear people being scammed through their credit card details. However, this is just the same with debit cards. It depends on how you keep your information secured. 

There are hidden charges.

Credit cards indeed have various charges. These are late payment fees, administration fees, annual fees and interest rates. Nevertheless, you have the chance to see them all in terms and conditions. The card issuer provided it for you to read carefully and sign afterwards.

However, most Singaporeans do not even bother reading the fine prints. Instead, they get too excited to use the new card. Therefore, they end up scratching their heads over the outstanding balance.

Credit cards will make me spend more.

Credit cards let you shop around online and in brick-and-mortar shops even without cash at hand. So it is tempting to purchase everything you want. But remember that these items are not gifts from Daddy Long Legs. You still have to pay for the purchases at a later date (bill’s due date).

Top 20 Reasons Singaporeans Worry about Credit Cards

Credit: https://therantingpanda.com/2018/11/11/snippets-maximising-your-cash-rebates-while-dining-out-with-your-credit-cards-stack-your-cash-rebates-with-savings-account/

Credit cards are all the same.

Credit cards are all plastic cards that bare the holder’s name and a series of numbers. But they are all different regarding rewards, cash backs and free miles. So take time to understand their purpose. Some credit cards are great for dining. Others are handy for petrol refills. In comparison, some are great for usual flyers.

I need to open a new bank account.

People worry about credit cards and opening a bank account. However, it is not always the case. It is enough to have just one bank account. But, you can pay for several credit cards for your convenience.

I will forget to pay the bills.

Use General Interbank Recurring Order (GIRO) to pay your bills on time automatically. GIRO Arrangements allow your bank to pay recurring bills charged by another organisation or merchant. You just have to make sure that your bank account has sufficient funds.

I will have a better credit score if I close my old credit card accounts

Closing several long-time credit card accounts can hurt your credit score. If you worry about credit cards, it is best not to close them all. Keep at least one or two open. Also, use it sparingly and pay on time. It helps to keep your credit score in shape.

Missing one payment is okay.

Credit card issuers are not as forgiving as you think.

When you miss paying your bill on time, there is an automatic interest rate charge and late payment fee. With the compounding interest rate, you will have a charge each day based on the current balance. Furthermore, the computation is on the amount you charged until you settle the bill.

Opening several new credit cards in a short time does not matter.

Opening a credit card with a few months in between may not affect your credit score. But if you apply for several credit cards in a short period of time, it will be very noticeable. Keep in mind that banks will be pulling your credit reports from the credit bureau. In addition, every credit history inquiry will be in your record. Plus, too much inquiry will pull down your credit score.

It’s okay to reach my credit limit. I am not spending over the limit anyway.

Though you have a credit limit, it is better not to reach that amount. It ensures you pay your bills with ease.

Furthermore, when you get into an emergency, your credit card will not be helpful anymore. Or worse, you might spend over the limit.

I should not accept any credit limit increase.

It is fine to have a credit limit increase. The lesser you use in your credit limit, the better. Plus, it will reflect in your credit score. Thus, a healthy way to improve it.

I just need one credit card.

Having one credit card may work for those who easily get tempted with a shopping spree. But if you are a responsible payer, a couple of credit cards can work to your best advantage. You can enjoy rewards, cash backs, free Miles and more.

Paying the required minimum amount will save my credit score

As long as you don’t settle the whole amount of the bill, it will be hurting your credit score. Aside from that, there is a charge of late payment charge. That’s why it is best to pay the right due. It lessens the worry about credit cards.

Cashback means getting paid for shopping.

You may enjoy cashback as many credit cards have been proud of this benefit. However, you have to remember two things.

  • You need to spend a minimum amount to be qualified for cash backs.
  • Also, most credit cards have the maximum amount of cashback you can claim.

It is hard to ask for a change in credit limit.

You can ask for a higher credit limit. But it depends on your credit score. If it is outstanding, it means you are a responsible payer. However, be mindful of your spending. It helps avoid the worry about credit cards. 

Employers never check my credit reports.

When paying your credit card bills, you should be mindful. It can significantly impact your credit score. If you hurt your credit score, it may negatively affect your employer. It is either you work in a financial organisation or your position involves handling the company’s finances.

If you need cash for immediate expenses without using a credit card, you can get a loan from Cash Mart today. It is the best alternative when you still worry about credit cards.