How Many Credit Cards Are Enough For Singaporeans?

Singaporeans love their credit cards.

According to the statistics provided by the Monetary Authority of Singapore (MAS), there were 9,721,768 credit cards and charge cards in circulation in Singapore in May 2015.

And there are 1.58 million credit card consumers - so that means a credit cardholder holds an average of 6 cards each.

That's nothing compared to Walter Cavanaugh of California, US, who holds the Guinness World Record for having the most credit cards - he had 1,497 credit cards in 2005, a record he held since 1971!

All his cards add up to a total credit line of $1.7 million dollars!

Ever wonder if there is a right number of credit cards you should have? How many are too many, and how many are too few?

There isn't really a magic number of credit cards one should have; it's about how you manage them that counts.

We at GET.com have come up with a list of things you need to consider:

Does The Number Of Credit Cards I Have Affect My Credit Rating?

Before you are approved for a loan or mortgage by the bank, there are several factors that the bank will take into consideration before they lend you money. One of them is your credit score.

A credit score is a number used by banks as an indicator of how likely you will default on a debt. There are many factors that can affect your credit rating including - current and past credit history, annual income, spending habits, and how many other types of loans you currently have.

In Singapore, the score ranges from 1000 to 2000, with 2000 being the best, and 1000 the worst. While there isn't really much effect from having too many credit cards until you can't afford to pay your bills or keep rolling over your bill each month, banks like to see that you have established a responsible credit history without going overboard.

This means that if you have credit cards and pay them on time, that actually helps your credit score, compared to someone who doesn't have a credit card and thus has little or no credit history.

Although having more credit cards may not affect your credit score, late payments on your credit cards will.

More Credit Cards = More Rewards

Compared to other countries, credit card issuers in Singapore understand that having attractive rewards is what entices customers to sign up with them.

That means banks here offer a wide range of credit cards to cater to the different needs of consumers. There are cash back credit cards, travel credit cards, rewards credit cards, petrol credit cards, low-interest credit cards, and the list goes on.

Cash-conscious Singaporeans may prefer cash back credit cards, whereas people who like to travel may go for travel credit cards that give them travel-related perks.

Singaporeans who like freebies will like rewards credit cards that give you points for every dollar you spend on the card and you can later redeem those rewards points for shopping vouchers or merchandise.

Since you are going to spend the money anyway, using the best credit card helps to maximize the rewards you can get.

Depending on your lifestyle, it may be more worthwhile to focus on just a few credit cards and concentrate on the highest percentage of your expenditure on these cards.

Spreading your expenditures over more than 5 cards may end up reducing the number of rebates you earn since you spend less per card.

Managing Your Credit Cards

Whether you have one or a few credit cards in your wallet, you need to have a system in place that enables you to pay your credit card bills on time each month.

The best and simplest way of doing that is to set up a GIRO deduction of your card bills.

Simply fill up an interbank GIRO form to link up your bank account to your credit card account, and voila, your credit card bills will automatically be deducted from your bank account each month.

Of course, you should also make sure you have enough to repay your card bill each month. If not, you will incur interest charges, and that's not a good thing.

In a nutshell, additional credit cards will likely not hurt and they could even help your credit. How many is right for you really depends on how comfortable you are at handling and managing them.

Source:https://sg.finance.yahoo.com/news/many-credit-cards-enough-singaporeans-010102863.html

The State of American Credit Card Debt in 2015

I think a lot of Americans are in credit card debt since it is so easy to get credit these days.

Americans continue to dig a deeper hole when it comes to credit card debt. According to the Federal Reserve and other government statistics, our penchant for indebtedness means that the average household now owes $7,281 in credit card debt alone.

But here’s the thing – that average includes even those who carry no debt at all. So when you take out the households and families that don’t carry a balance on any of their credit cards, the average outstanding balance surges to $15,609.

What’s more, as of early 2015, the total outstanding consumer debt in the U.S. has risen to $3.34 trillion. That figure includes car loans, credit card debt, personal loans, and student loan debt — but not mortgage debt. (That would add another $8 trillion to the pile.)

American Debt Statistics

• Average household credit card debt: $15,609
• Average mortgage debt: $156,706
• Average student loan debt: $35,000

Source: government data; current as of 2015.

Further proof that credit card debt and general indebtedness are heading in the wrong direction comes from a recent study on credit card debt from CardHub. According to the study, consumers ended 2014 with a $5.71 billion net gain in credit card debt, which means we’ve now seen six consecutive quarters of increasing credit card balances as a nation.

What Does This Mean for the American Economy?

Credit card debt and household indebtedness aren’t necessarily a bad thing. New mortgages mean new homeowners, a huge driver of construction and retail activity. And the underlying consumer spending that results in credit card debt leads to economic growth and expansion. The more people spend, the faster our economy can grow – and the more jobs and wealth will ultimately be created.

And if wages are rising in a healthy economy, that’s a good thing. The problem is, prolonged indebtedness cannot necessarily be sustained; it may be a symptom of people living beyond their means or trying to keep up with rising prices even as wages stagnate. Furthermore, down cycles work to suppress credit card spending, further deflating the economy.

From 2007 to 2010, for example — which includes the prime years of the Great Recession and some of the hardest years the American economy has seen in decades — the number of Americans carrying credit card debt fell dramatically as many consumers buckled down and either cut up their cards or were forced to stop spending — or perhaps even went into default. Among households carrying debt, the median debt load dropped 16.1% from 2007 to 2010, from $3,000 to $2,600.

More Statistics on American Credit Card Debt and Indebtedness

The following statistics, courtesy of Nasdaq, break down the extent of American indebtedness even further.

Here’s what Americans owe on credit cards:

• $1,098 per card that doesn’t carry a balance
• $1,648 per account among U.S. adults with a credit report and Social Security number
• $3,600 per person among U.S. resident adults
• $5,234 per person, excluding unused cards and store cards
• $5,596 per U.S. adult with a credit card
• $5,700 per household with credit card debt
• $7,743 per card that usually carries a balance

As total balances grow higher and higher, you would probably assume that the percentage of Americans carrying credit card debt has also increased with each passing year. However, the exact opposite is happening.

As American debt loads climb higher than ever before, the percentage of Americans racking up those debts is shrinking:

Year	Percentage of Americans with Revolving Credit Card Debt
2009	44%
2010	41%
2011	40%
2012	39%
2013	37%
2014	34%

This can only mean one thing: While more and more households are choosing a debt-free lifestyle, households who feel comfortable carrying debt are taking on more of it than ever before.

While this may not pose a problem in every case, mounting debt loads may ultimately take a toll on many of those families.

Students and Credit Card Debt

The Credit CARD Act of 2009 added certain protections that made it harder for students, specifically, to get into credit card debt. The law took effect in 2010 and has two purposes according to the Consumer Financial Protection Bureau.

The first is fairness since the law was designed to “prohibit certain practices that are unfair or abusive, such as hiking up the rate on an existing balance or allowing a consumer to go over the limit and then imposing an over-limit fee.”

A second objective was transparency. With its passage, the Credit CARD Act aimed to “make the rates and fees on credit cards more transparent so consumers can understand how much they are paying for their credit card and can compare different cards.”

With the average student loan debt expected to be nearly $35,000 for 2015 graduates, this law was very well-intentioned. Meanwhile, it’s had a relatively positive impact on the overall indebtedness of college students. Consider these statistics:

Balance	Percentage of Students Carrying a Credit Card Balance in 2013
Don’t know	3%
Zero balance	32%
$1-$500	46%
$501-$1,000	8%
$1,001-$2,000	6%
$2,001-$4,000	3%
>$4,000	2%

Debt levels also fluctuated among different age groups and college grade levels in 2013:

College Grade Level	Average Balance in 2013
Freshmen	$611
Sophomores	$258
Junior	$547
Seniors	$610

Where Is American Household Debt Headed?

The Federal Reserve’s Report on the Economic Well-Being of U.S. Households in 2013 examined survey results to reveal some startling conclusions when it comes to Americans’ household indebtedness. A few interesting statistics:

• A majority (57%) of survey respondents claimed to pay their credit card balance in full each month.
• Of the remaining population who carried a balance, 82% had been charged interest on their purchases during the last 12 months.
• Among those who carried a balance, 53% were only making the minimum payment.
• Among those who carried a balance, 12% had gotten a cash advance from their credit card during the last 12 months.

With those statistics in mind, it’s fairly safe to say that household indebtedness may continue to increase until something drastic happens, such as an economic crisis on the scale of the Great Recession, which led American households to pay down debt from 2007-2010.

In the meantime, it appears many Americans are all too comfortable with their large outstanding balances.

Source:http://www.thesimpledollar.com/the-state-of-american-credit-card-debt-in-2015/

Why Americans are Getting New Credit Cards

Credit Cards

NEW YORK (AP) -- A big change is happening inside your wallet.

U.S. banks, tired of spending billions each year to pay back fleeced consumers, are in the process of replacing tens of millions of old magnetic strip credit and debit cards with new cards that are equipped with computer chips that store account data more securely.

By autumn, millions of Americans will have made the switch from the old magnetic strip cards. That 50-year-old technology, replaced in most of the world, lingers on the back of U.S. cards and is easily copied by thieves, leaving people vulnerable to fraud. Roughly half of all credit card fraud happens in the U.S. even though the country only makes up roughly 25 percent of all credit card transactions, according to a report by Barclays put out last week.

This entire switch is a massive undertaking. Roughly half of all U.S. credit and debit cards will be replaced by the end of the year. Tens of thousands of individual merchants need to upgrade their equipment to allow for chip transactions instead of "swipe-and-sign" ones. If the stores aren't ready, they could be on the hook to cover the cost of fraud.

Here's how the new cards work and how the switch could affect you at the checkout counter:

WHAT'S DIFFERENT ABOUT THESE CARDS?

The biggest difference between your old card and your new one is the metal chip embedded on the front, which means your personal data is much safer. The chip assigns a unique code for every transaction made on your card. Even if a thief acquired that code, it couldn't be used to make another purchase.

Chip cards are also harder to duplicate, although it's not unheard of. Overall, the chip cards are more secure than magnetic cards, which are vulnerable because once thieves get a copy of your credit card information, it can be quickly copied onto counterfeit cards.

Chip cards have been common in Europe for more than a decade, and they've been standard in other
parts of the world for some time.

"The chip technology is designed to prevent copying of the card," says Ellen Richey, vice chairman of risk and public policy at Visa.

In the U.S, chip-embedded cards have seen limited use until now. Laundromats, for instance, are one place chip-reading cards are being used.

WHEN WILL I GET ONE?

At this point, the majority of magnetic-stripe credit cards have been replaced with chip cards. Banks are in the middle of issuing chip-based debit cards, with Bank of America starting late last year and Chase and Citi starting this summer. Regional and smaller banks are also rolling out these cards to their customers, most of them starting later this year.

All chip cards also come with a magnetic strip in case chip readers aren't available. However, if a merchant does accept chip cards for purchases, you should use that option every time because it's more secure.

WHO'S BEHIND THE CHANGE?

The change is mostly coming from banks and payment processing companies — Visa, MasterCard and American Express. Banks have wanted a more secure form of payment because they have generally been on the hook for any fraud that happens on their cards. Originally the banks were relying on their own software and data from the payment networks to catch fraud at the point of sale in the U.S., but it became clear something more was needed, Richey said. Banks, particularly small banks, would often pay out of pocket to cover any fraud that happened on their customers' payment cards. The American Bankers Association estimated that bank account fraud cost the industry $1.74 billion in 2012, the most year the data is available.

The payment networks have set a soft deadline of October 1, 2015, for the switchover to be made. After that date, most merchants who continue to accept magnetic strip cards and have not upgraded their equipment could have to pay for any credit or debit card fraud that happens in their stores. The "liability shift," as it's called, presents a looming deadline for the banks, payment companies and merchants.

HOW DO I USE THE CHIP CARD?

Instead of swiping your card at the checkout, you'll insert it into a machine with a slot like those on ATMs. Your card will stay in the slot until the machine tells you to remove it. Unlike magnetic stripe cards, chip cards need to be left in the machine for a few seconds to work.

WHERE AND WHEN CAN I USE MY NEW CHIP CARD?

You can use it now. The problem is that merchants need the right equipment to accept the cards embedded with chips. Many stores have been slow to upgrade their equipment, despite the October deadline, because it could be a significant expense to replace equipment and retrain employees. Payment processing companies like Visa, and the bank who issued the cards, are pushing stores to accept the chips cards. Visa expects roughly half of all merchants to have chip card readers by the end of the year.

ANYTHING ELSE CHANGING?

The new cards won't work quite the same way they do in Europe, but they're a step closer. The type of card being rolled out in the U.S. will still need a signature when you pay for something. Eventually what will be used in the U.S. is what's used in the rest of the world, known as "chip and PIN." It would work similarly to your ATM card now. You would insert your card and enter a four-digit password to approve the transaction. Security experts believe this is a very safe way to pay for things. Signing for a credit card purchase provides near-zero security since signatures vary and are rarely checked.

WHAT COULD GO WRONG IN OCTOBER?

From a consumer perspective, there is little to worry about. The biggest issue is for the merchants, who are way behind replacing their equipment in time for the deadline.

Hotel General Manager Accused of Stealing Nearly $900,000 in Credit Card Scheme

ALLENDALE, MI – The former general manager of Sleep Inn hotel in Allendale is accused of stealing nearly $900,000 by directing credit card payments to her own accounts, according to an indictment unsealed Friday, Nov. 21.

Renata Nicole Annese is charged with 15 counts of wire fraud and a single count of money laundering.

The government is seeking forfeiture of property on Maplewood Drive in Jenison titled to Renata and Michael Annese. The government is seeking to recover $872,929.23, which investigators estimate to be proceeds of an alleged scheme that began in October 2006 and ended in April 2013, court records showed.

Renata Annese turned herself in Friday to U.S. Marshal’s Service, records showed. She has hired Grand Rapids attorney James Brady to represent her. He was not immediately available for comment on the allegations.

Annese was hired as general manager at Sleep Inn in Allendale in 2004, two years after it opened. The hotel is affiliated with Choice Hotels International, based in Rockville, Md. As general manager, she was responsible for daily operations of the hotel, including the processing of credit card transactions, Assistant U.S. Attorney Ronald Stella wrote in the indictment.

Here’s how Stella said the alleged scheme worked:

Credit and debit cards at the hotel would cause wire transmissions to be made through corporate services in Arizona and then through a Shift4 system in Nevada. Shift4 then sent authorization requests to the issuing bank for each customer and stored the authorized transactions in a “batch” on its computer system.

Once the customer’s stay was complete, credit and debit card authorizations were then converted to actual payments. Shift4 allows hotels to review and edit credit and debit card transactions before converting the authorizations into a final payment.

This process allows hotels to reserve authorizations in the event that a customer does not ultimately stay at the hotel or is dissatisfied with service and requires a refund.

Annese had sole responsibility for reviewing credit and debit card transactions. She would log onto Shift4’s system using a unique account number, user name, and password to review, edit or remove transactions before releasing a daily batch for final processing and payment to the hotel.

She allegedly carried out the scheme by fraudulently editing batches of credit cards in the Shift4 system before releasing them for payment. She manually entered her credit or debit card account numbers into the system and used a customer’s name to make it look like the transaction belonged to that customer, Stella wrote.

“By using the customer’s name and making the transaction amount match the amount of the legitimate transaction with the customer’s card, Renata Nicole Annese made the fraudulent transaction appear to be a legitimate refund to that customer, Stella said.

The money laundering charge alleges she wrote a check for $18,930.84 to Betten Imports to buy a vehicle, Stella wrote in court records.

Source: http://www.mlive.com/news/grand-rapids/index.ssf/2014/11/hotel_general_manager_accused.html

Wise Transition from Debit Cards to Credit Cards

According to an article, Uh-oh: 63% of Millennials don't have credit cards, more than six in 10 people ages 18 to 29 don't have a single credit card in their wallets, reveals a survey conducted for Bankrate.com. 

They prefer to use debit cards. I think it is a good move to get involved with plastic cards, first a debit card, and then a credit card.

Advantages of debit cards

A debit card is linked to your bank account. Each time you use it to purchase an item; the amount is deducted from your account. It is straightforward and no credit is involved.  The most important thing is that no debt will be incurred.

It is a good learning process. You can’t use your card when there is no money in your account. In a way, it is effective to limit overspending. You spend only when you have the money. In the end, you develop a good habit to live within your means     

The bank only charge a nominal yearly fee for the issuance of a debit card

You use the card like cash and yet you don’t have to carry a large sum of money while travelling and reducing the risk of loss and theft.

By using a debit card it is easier to budget your expenses because whatever payment made it is deducted from your bank account immediately.

Like a credit card, a debit card is accepted worldwide.    

Advantages of credit cards

It is a good move to switch to a credit card after using a debit card for some time. After a while, a good habit has already established to use your credit card like a debit card only when there is a fund available in your bank account.  As you grow older you will be more mature to handle a credit card.       

A credit card is essential in your financial life. A credit card is an excellent tool to establish your creditworthiness and build credit scores.   

When you make a prompt payment you don’t incur late fees and interest charges. As a credit cardholder, you can earn cash back or reward points for each dollar you spent.

Furthermore, it is much safer to use a credit card because you can always dispute a transaction that is not in order.

Conclusion

Manage your finance by using a debit card first. Switch to a credit card when you are in control of your money by not spending impulsively. 

MAS Plans to Strengthen Oversight of Credit Bureaus

Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) has published a consultation paper outlining proposals to strengthen oversight of credit bureaus so as to safeguard sensitive credit information and protect the interests of consumers.

The plan to subject credit bureaus to formal oversight under a new Credit Bureau Act comes as such entities collect more detailed borrower information from members such as banks, finance companies, and credit card companies.

MAS on Tuesday (Aug 12) said a key focus of these requirements will be for credit bureaus and their members to ensure data confidentiality, security, and integrity.

For example, members of licensed credit bureaus will be required to provide a consumer with a copy of his credit report at no cost within a specified period of approving or rejecting a credit application. MAS said this is to better enable consumers to access and verify the accuracy and completeness of their credit records.

MAS also said the proposed Credit Bureau Act will impose a legal obligation on licensed credit bureaus and their members to adopt clear and effective procedures to facilitate investigation and rectification of credit data when consumers dispute the accuracy of their credit data.

In addition, as part of good governance, a licensed credit bureau will be subject to annual audits by a MAS-approved auditor and will need to seek MAS' approval for changes to its substantial shareholders, the board of directors and chief executive officer.

The consultation paper on credit bureaus is available on the MAS website and comments should reach the central bank by Sep 12.

Currently, there are two credit bureaus in Singapore - Credit Bureau (Singapore) Pte Ltd and DP Credit Bureau Pte Ltd - that are recognised by MAS to collect and disclose credit data to members.

Credit Bureau Singapore (CBS) said in a statement on Tuesday that "the role of the credit bureau will also become increasingly important now that new measures on unsecured credit have been introduced." It adds that "on the consumers' end, the regulatory oversight will boost consumer confidence in their credit bureau".

The Best Movie Credit Card in the World

I have already had two cards in my possession, CIMB Petronas MasterCard and Hong Leong Bank Platinum Visa Card, but I just can’t help to get one more card, the Hong Leong Bank Golden Screen Cinemas Visa Card.

I enjoy movies because in a cinema hall I get uninterrupted entertainment for two hours to unwind and relax. This particular card complements my lifestyle. 

 

What’s so good about the card?

Upon approval of your application you get:

1 x Complimentary Movie Ticket

1 x Small Popcorn Combo Set

1 x 50% Discount Voucher on Food & Beverage Purchases at GSC's Outlets

5 x Buy-1 Free-1 International Screens Movie Tickets

You also enjoy up to 10% discount on normal ticket purchases when you use your GSC-Hong Leong Credit Card at all GSC Outlets. Here's how:-

Cost Per Ticket	Discount Entitlement
Below RM 10	RM 0.50 per ticket
RM10 and above	RM 1 per ticket
RM 20 and above	RM 2 per ticket
RM 40 and above	RM 4 per ticket
RM 50 and above	RM 5 per ticket
RM 60 and above	RM 6 per ticket

 Incredible Bonus Value Privileges

As a new GSC- Hong Leong Principal Credit Cardholder, Platinum Cardholders will be entitled to RM100, and Gold Cardholders will be entitled to RM60 worth of Bonus Value. You can use this Bonus Value to pay off up to 50% of your ticket purchase. Below is an illustration of a Platinum Cardholder with a Bonus Value of RM100:-

(BV=Bonus Value, Trans=Transaction, B/F=Brought Forward, Amt=Amount, C/F=Carried Forward, Bal=Balance, Disc=Discount)

Priority Ticketing Lane

With your GSC- Hong Leong Credit Card, you can purchase your GSC movie tickets faster and hassle-free through our Priority Ticketing Lane.

However, I don’t have to go to the cinema to purchase tickets; I can stay at home and do the same. Not only that, I normally buy tickets online on a Thursday to watch a movie either on Thursday, Friday or Saturday because I get one ticket free on top of the discount mentioned above. I usually invite my friend for a night out. This is really buying happiness and giving happiness to others.    

You can take further advantage by joining GSC as a member because, during your birthday month, you will get two free movie tickets and 20% off your meal at their Glitters Café.

The card is free for life when you spend at least 12 times on your GSC- Hong Leong Gold or Platinum Card in a year.

Is there a better movie credit card?

New Credit Card Rules in Malaysia

Bank Negara Malaysia is tightening credit card requirements for those in the lower-income bracket to keep household debt at manageable levels.

With immediate effect, first-time applicants for a credit card must now have a minimum monthly salary of RM2,000 from RM1,500 previously.

According to Bank Negara Malaysia deputy governor, Nor Shamsiah Mohd Yunus, new and existing cardholders earning RM36,000 per annum and less, can hold only credit cards from a maximum of two issuers. The maximum credit limit has been capped or two times the monthly income of the cardholder

For existing cardholders, they need to choose their preferred two issuers by December 31. For those existing cardholders who are earning less than RM24,000 per annum, they need not surrender their credit cards.

Nor Shamsiah said cardholders would be given at least two years to service their outstanding debt for cancelled cards to comply with the new requirement

For existing cardholders, whose outstanding balance exceeds the maximum credit limit, a grace period of two years will be given to settle the amount in excess of the maximum credit limit

From January 1 onwards, issuers shall review cardholders’ eligibility on the anniversary date of the credit card. During the review, if cardholders have fulfilled their quota of holding credit cards from two issuers, the issuer shall not extend their credit card facility to the cardholder.