There are many reasons why credit cards are superior to an atm card, as we’ve discussed previously.
Chief included in this is perfect for minimising the impact of fraudulent transactions. With charge cards, if you learn a suspicious transaction, you can simply report it and also have the charge reversed so you won't be on the hook once the bill arrives that month. The money inside your bank account remains safe and untouched.
Security aside, the ability to earn cashback, air miles and rewards without having to spend more, makes charge cards a no-brainer for many Singaporeans. Actually, there are social networks that are dedicated to discussing the proper way to hack popular air miles cards in Singapore, such as the Citi PremierMiles, Amex KrisFlyer, UOB PRIV Miles, DBS Altitude, and also the newly-launched OCBC 90N.
However, there are legitimate reasons why some Singaporeans still use an atm card – and why they could still have a place within our wallets.
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#1 When utilizing Credit Cards Incur Extra Costs
When shopping overseas or at online retailers that charge in foreign currency, utilizing a charge card would incur additional charges and unfavourable foreign exchange rates.
In such situations, it might seem sensible to utilize a debit card associated with a multi-currency account, like the DBS Multiplier or UOB Mighty FX to make you buy the car.
Read Also: Online Shopping: What Happens Whenever you Pay In Foreign Currencies Using Your Singapore Credit Card
#2 Zero Chance Of Incurring Debts
At about 25% per year, the eye charges for late payments to your charge card is dangerously high. If you're not financially disciplined to invest within your means and repay your entire balance in your charge card, a credit card might cause you to definitely enter into debts that may quickly and easily snowball.
With a debit card, however, there is no opportunity for you to enter debt, with no bill you could forget to pay for at the end of the month, since only spend as much money as that which you have inside your bank account.
That said, you should make an effort to develop good budgeting and disciplined financial habits, regardless of whether you spend on a debit or credit card.
Read Also: How Quickly Credit debt Can Snowball And Leave You In Financial Ruin
#3 When Buying From Small Businesses
Credit cards are recognized to be more expensive to merchants compared to other payment methods. As a result, some businesses may impose the absolute minimum spend or otherwise accept credit cards whatsoever.
Sometimes, merchants could also need you to pay using cash, NETS or an atm card if you wish to make the most of promotions and discounts.
Using an atm card would allow you to definitely still enjoy cashless convenience when you shop at businesses that do not accept charge card payments.
Read also: How Much Can You Save If you are paying The proper way?
#4 When You Do Not Meet The Income Criteria For Credit Cards
To make an application for most credit cards, you typically must have an annual salary of $30,000 and much more.
This means that some categories of people would be automatically excluded, such as fresh graduates who're just starting work and do not have an income history, retirees and housewives, or working adults who don't hit the minimum income criteria.
For people who do not have access to charge cards, an atm card offer most of the same advantages of credit cards: convenience of contactless payments, ability to make online transactions, and omitting the necessity to carry considerable amounts of money.
Debit Cards Have A huge role To Play
When it comes to credit cards or debit cards, it does not have to be all or nothing.
Even if you qualify for a credit card, a debit card (especially one that's linked to a multi-currency account) may be useful enough to earn a spot in the bank so you have the option to choose the best means of payment for each transaction you make.
Read Also: Here's Exactly what the Charge cards You Use Reveal Concerning the Kind Of Person You Are