Singapore Expats

Is it difficult for a EP holder to apply for a credit card in Singapore? Any requirements?

Tuenyi wrote:Is it difficult for a EP holder to apply for a credit card in Singapore? Any requirements?

Hello Tuenyi. Hmm, it's not as straightforward as one would hope and the credit card companies don't exactly make it easy.

You need one or more of the following:

passport
employment pass
letter by your employer stating your earnings
proof of earnings (if you've been drawing an income here for a while)

Sounds easy, but they can be right pr!cks about it. When I first came here I was on US220K base plus loads of goodies, three years track record with the company (with more than 70,000 employees worlwide) in Sydney and then transferred to Singapore.

I applied for a credit card and got the royal runaround - finally they rejected the application . . . and the credit limit I was after was S$5K.

Finally got one with another bank - but who knows what they do and why they give kids or low earners credit cards so easily.

I would go for debit cards if I were you. One benefit is that you will not be restricted by any preset amount other than the amount of funds in your bank account of course. Secondly you will not have to pay interest on the money you spend.

So, if you don’t need to live on credit it is easy money to save. For instance if your average credit card balance is SGD 50K then your yearly interest payment would amount to at least SGD 10K.

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You can easily get a Credit Card on EP here as long as you have an account with the Bank you want one from and your monthly wages hit a certain level. Also you will need a letter from your employer confirming your salary.

Oriental wrote:I would go for debit cards if I were you. One benefit is that you will not be restricted by any preset amount other than the amount of funds in your bank account of course. Secondly you will not have to pay interest on the money you spend.

So, if you don’t need to live on credit it is easy money to save. For instance if your average credit card balance is SGD 50K then your yearly interest payment would amount to at least SGD 10K.

Bingo, Oriental, smart thinking, completely agree with you.

Eric

need to make sure you hit the right time window... for example, i was on 1 year employment pass and applied for credit card with hsbc - after more then 3 months ... got rejected because the residual term of my EP was less then 9months ... not very logical,since credit cards are tyically valid longer than a year anyway,but thats the rule ... other banks may have different rules ... funny thing is upon request, they refused to tell me what was the problem with my application until i found out in the small print

Oriental wrote:I would go for debit cards if I were you. One benefit is that you will not be restricted by any preset amount other than the amount of funds in your bank account of course. Secondly you will not have to pay interest on the money you spend.

So, if you don’t need to live on credit it is easy money to save. For instance if your average credit card balance is SGD 50K then your yearly interest payment would amount to at least SGD 10K.

Not so hot if you travel. For example, a business trip to Tokyo can easily cost S$25,000 for an extended stay. I get reimbursed but meanwhile I need the $25,000 line of credit. If things work out right, I get paid back at about the same time the bill becomes due... no interest... but a lot more money than in my checking account.

rudiruessel wrote:need to make sure you hit the right time window... for example, i was on 1 year employment pass and applied for credit card with hsbc - after more then 3 months ... got rejected because the residual term of my EP was less then 9months ... not very logical,since credit cards are tyically valid longer than a year anyway,but thats the rule ... other banks may have different rules ... funny thing is upon request, they refused to tell me what was the problem with my application until i found out in the small print

One way around this is to offer to put up a CD with the bank as the beneficiary for the amount of the credit line being offered. The complaint is often that "if I have that kind of money I wouldn't need the CC would I?" Which is patently untrue unless you want to carry that kind of money around in your pocket - As SE mentioned and business trip to Tokyo could cost you around $25K.

If you need a card to keep from paying interest and to just ease your cashflow, go with the Charge Cards and not a Credit Card. That way you cannot "rollover" the balance without incurring "Hefty" charges (except on "layaway" charges like some airlines tickets purchased through them - at an unattractive rate thou....). This would be an ideal solution for someone with your quoted income.

sms

Business trips of S$25,000?

What kind of business you guys are in I wonder....

I think the convenience of a debit card is more for private use, and if to make bus trips that expensive, I'd ask for a company cc for sure...

Eric

Eric from the Netherlands wrote:Business trips of S$25,000?

What kind of business you guys are in I wonder....

I think the convenience of a debit card is more for private use, and if to make bus trips that expensive, I'd ask for a company cc for sure...

Eric

In SE's case I'd think that 3 weeks in Tokyo at a major hotel, entertaining your Japanese MNC clients, as the MD of your own Pte Ltd company you could easily chalk up that kind of bill.

(Oh, a Charge Card is not to be construed as a "Debit Card". I mean the likes of AMEX or Diners Club.

sms

sundaymorningstaple wrote:

Eric from the Netherlands wrote:Business trips of S$25,000?

What kind of business you guys are in I wonder....

I think the convenience of a debit card is more for private use, and if to make bus trips that expensive, I'd ask for a company cc for sure...

Eric

In SE's case I'd think that 3 weeks in Tokyo at a major hotel, entertaining your Japanese MNC clients, as the MD of your own Pte Ltd company you could easily chalk up that kind of bill.

(Oh, a Charge Card is not to be construed as a "Debit Card". I mean the likes of AMEX or Diners Club.

sms

Exactly. Nothing is cheap in Tokyo... $4000 for a business class flight, $600 per night in a good, not great hotel... transporation, food, beverage... it does all add up.

With those kind of expenses, of course one needs a cc, goes without saying I guess. Again, I'd ask for a company card in that case, but then again, I know you have your own company as well SE.

Again, for private use on the more moderate side, I opt for the debit card for reasons given by Oriental.

I've seen quite a few Singaoporeans being so proud of their platinum cards, makes me laugh. Status....

In your case it is just common sense and functional SE.

Eric

Eric from the Netherlands wrote:With those kind of expenses, of course one needs a cc, goes without saying I guess. Again, I'd ask for a company card in that case, but then again, I know you have your own company as well SE.

Again, for private use on the more moderate side, I opt for the debit card for reasons given by Oriental.

I've seen quite a few Singaoporeans being so proud of their platinum cards, makes me laugh. Status....

In your case it is just common sense and functional SE.

Eric

Actually, Eric, there is one other thing onerous about debit cards issued in Singapore... the banks have no liability if your account is cleaned out, even if you inform them of the loss OCBC is different). At least with a credit card, you are limited to the loss up until the card is reported stolen.

I still keep my US debit and credit cards. I have zero liability in the event of loss or use of the number. Another thing is that the Singapore banks were stunned that I wanted a credit card with a $25,000 limit, and even though I have a US$100,000 limit on my US card, these guys didn't want to do it. My partner finally convinced Citibank that they would give him a card with a high limit... only after threatening to remove his rather substanital funds from the bank and go on down the street.

Tuenyi wrote:Is it difficult for a EP holder to apply for a credit card in Singapore? Any requirements?

Rules depends from bank to bank.

The easy one's are HSBC, with a 2-year employment pass and a salary range above 2.5k should be ok

Next one is diner club (alias of citi bank), with a 1-year employment validity and 2.5k salary.