Financial Planning & Advisory
Part I – Credit Card Deals Comparison
In order to simplify our comparison of credit cards, we will focus solely on reward credit cards and will not consider the other types of credit cards. In total, we have selected the 19 most popular cards from 9 different banks. The comparisons are based on 12 factors: annual fee, annual fee waiver period, supplementary fee, minimum income, credit limit, interest free period, minimum monthly payment, late charge, interest on balance, cash advance limit, cash advance fee and other benefits. The full comparison table can be found on page 4 to 7.
As different cards are designed for different users, it is hard to choose only one best card for all the users. Therefore, we have divided card users into three different groups and provided advice for each group respectively. The three groups are: People with below average income(S$30,000- S$40,000 per year), people with high income (above S$50,000 per year) and students. To simplify the comparisons, all users are assumed to be Singapore citizens. I. People with Below Average Income(S$30,000- S$40,000)
The most important factors credit card criteria for this group of people are usually the card annual fee, annual fee waiver period, supplementary fee and minimum income. Among all the cards, we advise using the DBS Classic Card, which has only a S$36 annual fee, 2-year annual fee waiver, $18 supplementary fee and minimum income requirement of S$30,000. Therefore for the first 2 years, users only need to pay $18 annually to enjoy the similar features to any other card with higher fee. II. People with High Income (above $50,000)
The most important factor that users of this group would consider are the “other benefits” of the card. The choice of card largely depends on the lifestyles of users.
For people who likes to go shopping and dining, Citi Clear Platinum Card is the best choice due to its following features: 1. 5X rewards all year round at nightspots, cafes, cinemas,
In order to simplify our comparison of credit cards, we will focus solely on reward credit cards and will not consider the other types of credit cards. In total, we have selected the 19 most popular cards from 9 different banks. The comparisons are based on 12 factors: annual fee, annual fee waiver period, supplementary fee, minimum income, credit limit, interest free period, minimum monthly payment, late charge, interest on balance, cash advance limit, cash advance fee and other benefits. The full comparison table can be found on page 4 to 7.
As different cards are designed for different users, it is hard to choose only one best card for all the users. Therefore, we have divided card users into three different groups and provided advice for each group respectively. The three groups are: People with below average income(S$30,000- S$40,000 per year), people with high income (above S$50,000 per year) and students. To simplify the comparisons, all users are assumed to be Singapore citizens. I. People with Below Average Income(S$30,000- S$40,000)
The most important factors credit card criteria for this group of people are usually the card annual fee, annual fee waiver period, supplementary fee and minimum income. Among all the cards, we advise using the DBS Classic Card, which has only a S$36 annual fee, 2-year annual fee waiver, $18 supplementary fee and minimum income requirement of S$30,000. Therefore for the first 2 years, users only need to pay $18 annually to enjoy the similar features to any other card with higher fee. II. People with High Income (above $50,000)
The most important factor that users of this group would consider are the “other benefits” of the card. The choice of card largely depends on the lifestyles of users.
For people who likes to go shopping and dining, Citi Clear Platinum Card is the best choice due to its following features: 1. 5X rewards all year round at nightspots, cafes, cinemas,
References: Part I Benedict Koh, Wai Mun Fong, Personal Financial Planning 4th edition, 2011, Pearson Education South Asia