My alma mater sent me a letter asking me to apply for a certain credit card. It is a gold Visa card with the name and logo of the university, and if my application is successful, I will receive a free Platinum Mastercard together with it.
I am rather tempted to apply actually. However, I have not been lucky where credit card application is concerned, especially the past couple of years. Perhaps it is due to my fluctuating employment status, or that I am no longer in the government service. I believe it is the former though.
I always wonder just what is the difference between Visa and Mastercard anyway? They both need the same annual income to apply, both have the same annual fees and both are internationally recognised.
Personally I prefer Mastercard. Maybe because my very first card is a Mastercard so somehow the preference has stuck. I still remember the feeling when I first got my card, as if I, too, can sign for purchases and do online transactions. Road to financial independence!
There have been more and more credit cards lately. Where there used to be just the normal Visa, Mastercard, American Express and Diner's Club, there are now cards affiliated with mobile service providers that allow discounts and perks off bills, cards affiliated with departmental stores that allow points and rewards when you shop there.
And even cards that give incentives when you go grocery shopping, filling up the petrol in your car, discounts off utility bills, perks and discounts when you go travelling, or fly a certain airline, or go through a certain travel agency, or even when you visit the zoo or Sentosa island.
Not to mention the numerous discounts and promotions offered at the various restaurants, spas, clubs, cinemas, grooming salons and tickets to plays and theatres. The competition is just so intense now!
As a result, the various banks may be at each others' throats and keep coming up with different cards that deal in different attractive perks and promotions in order to attract more customers. And some banks now even allow people who do not meet the income requirement to apply for their cards as long as they show evidence of being able to pay their bills on time!
These people have to put in a fixed collateral of at least S$10,000.00 into the bank before they can apply for any credit card. Personally, if I have that amount to spare, I rather use it for investment and gain more interest, or else use it for more meaningful purposes, rather than as a fixed collateral for any credit card.
A lot of adjustments have been made in order to attract more customers. Where in the past, anyone meeting the minimum requirement could only apply for a classic normal card, a gold card required 1.5 times the amount and a platinum card about twice the amount, nowadays some gold and platinum cards only need the minimum income to apply.
Which means more and more people are able to afford a gold or platinum card. Which results in people applying for more and more cards. I am not one who has so many cards to my name, and sometimes I do get embarrassed when I go out with some of my friends, who have like fifteen cards, a mixture of gold and platinum!
If people own so many cards, do they really utilise all of them? Will it not be a waste if they do not utilise, since the annual fees have to be paid anyway? Although now banks allow annual fees to be waived up to five years for new applicants, but still, what is the purpose of applying for a card if one does not use it at all?
Some people may want to collect the different types of cards. Granted it may be a hobby to collect the cards, but for me, when I do apply for any card, I make sure I use it consistently for at least a year. Otherwise I find it a waste.
Besides, if people have so many cards to their names and they do utilise all, I wonder do they have enough to pay off? Maybe they just pay a minimum amount for each card, but will it not ultimately accrue more due to interest if the payment is not done in full?
I think credit cards is best for those who can control their spending and ensure they will never run into debt. Otherwise, the consequences may be too much for them to pay.
I am rather tempted to apply actually. However, I have not been lucky where credit card application is concerned, especially the past couple of years. Perhaps it is due to my fluctuating employment status, or that I am no longer in the government service. I believe it is the former though.
I always wonder just what is the difference between Visa and Mastercard anyway? They both need the same annual income to apply, both have the same annual fees and both are internationally recognised.
Personally I prefer Mastercard. Maybe because my very first card is a Mastercard so somehow the preference has stuck. I still remember the feeling when I first got my card, as if I, too, can sign for purchases and do online transactions. Road to financial independence!
There have been more and more credit cards lately. Where there used to be just the normal Visa, Mastercard, American Express and Diner's Club, there are now cards affiliated with mobile service providers that allow discounts and perks off bills, cards affiliated with departmental stores that allow points and rewards when you shop there.
And even cards that give incentives when you go grocery shopping, filling up the petrol in your car, discounts off utility bills, perks and discounts when you go travelling, or fly a certain airline, or go through a certain travel agency, or even when you visit the zoo or Sentosa island.
Not to mention the numerous discounts and promotions offered at the various restaurants, spas, clubs, cinemas, grooming salons and tickets to plays and theatres. The competition is just so intense now!
As a result, the various banks may be at each others' throats and keep coming up with different cards that deal in different attractive perks and promotions in order to attract more customers. And some banks now even allow people who do not meet the income requirement to apply for their cards as long as they show evidence of being able to pay their bills on time!
These people have to put in a fixed collateral of at least S$10,000.00 into the bank before they can apply for any credit card. Personally, if I have that amount to spare, I rather use it for investment and gain more interest, or else use it for more meaningful purposes, rather than as a fixed collateral for any credit card.
A lot of adjustments have been made in order to attract more customers. Where in the past, anyone meeting the minimum requirement could only apply for a classic normal card, a gold card required 1.5 times the amount and a platinum card about twice the amount, nowadays some gold and platinum cards only need the minimum income to apply.
Which means more and more people are able to afford a gold or platinum card. Which results in people applying for more and more cards. I am not one who has so many cards to my name, and sometimes I do get embarrassed when I go out with some of my friends, who have like fifteen cards, a mixture of gold and platinum!
If people own so many cards, do they really utilise all of them? Will it not be a waste if they do not utilise, since the annual fees have to be paid anyway? Although now banks allow annual fees to be waived up to five years for new applicants, but still, what is the purpose of applying for a card if one does not use it at all?
Some people may want to collect the different types of cards. Granted it may be a hobby to collect the cards, but for me, when I do apply for any card, I make sure I use it consistently for at least a year. Otherwise I find it a waste.
Besides, if people have so many cards to their names and they do utilise all, I wonder do they have enough to pay off? Maybe they just pay a minimum amount for each card, but will it not ultimately accrue more due to interest if the payment is not done in full?
I think credit cards is best for those who can control their spending and ensure they will never run into debt. Otherwise, the consequences may be too much for them to pay.
3 comments:
Credit cards is just another tool. Savvy users milk them for all the myriad promotions and discounts, yet never incurr any extra expense in terms of subscription or interest.
Me, the fast food and hawker centre gamer guy, have no need for such tool at the moment.
Like ole'wolvie said, they are a tool.
I have several, but I don't use them. I only have them because when credit companies ask if I pay my bills on time, the credit card company will say yes. It is a simple way to boost your credit score.
I have only one I use (from a grocery chain) because it gives me back 1% of my purchases in credits I can spend there. I rarely use my debit card, ebcause I get n othing in return. I also never carry a balance.
Ole Wolvie & Richard : Agree that it's just a tool. Although for me, I use cards more for the perks and discounts, rather than really extravagant spending.
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