credit card for foreigners singapore

The Complete Guide to Credit Cards for Foreigners in Singapore

Credit cards are essential in Singapore, especially for foreigners, as card payments (97%) now surpass cash usage (82%). This trend indicates Singapore’s move towards a cashless society, with credit cards being a significant part of point-of-sale and e-commerce transactions.

For foreigners, choosing the right credit card can be challenging. This guide will simplify the process by explaining eligibility criteria, types of credit cards, and top choices for expatriates, helping you find a card that suits your lifestyle and financial needs in Singapore.

Understanding Credit Cards in Singapore

A credit card is a payment card issued by a bank or financial services company. It allows cardholders to borrow funds to pay for goods and services with merchants that accept cards for payment. Investopedia explains that the borrowed money, plus any applicable interest and additional agreed-upon charges, must be paid back either in full by the billing date or over time.

In Singapore, the issuance of credit cards is governed by strict regulations set by the Monetary Authority of Singapore (MAS). These rules ensure that financial institutions (FIs) adhere to minimum criteria before issuing credit cards to individuals. The criteria vary based on the individual’s age, and the regulations cover the credit limits that FIs can grant.

Here’s what you need to know:

Credit Limit

The credit limit is the maximum amount you can spend on your credit card. It’s determined by the issuing bank but must comply with guidelines set by the Monetary Authority of Singapore (MAS). These regulations ensure that individuals don’t borrow beyond their means. For instance, your total credit limit across all cards should be within specific boundaries based on your age and annual income.

For those up to 55 years old:

Annual Income Regulatory Credit Limit
≥$30,000 to <$120,000 Up to 4 months’ income
≥$120,000 (or net personal assets exceeding $2 million, or net financial assets exceeding $1 million) No regulatory limit

 

For those over 55 years old:

Net Personal Assets Annual Income Regulatory Credit Limit
S$750,000 to S$2m ≤S$15,000 Up to $2,500
≤S$2m >S$15,000 to <S$30,000 Up to 2 months’ income
≤S$2m ≥S$30,000 to <S$120,000 Up to 4 months’ income
Any ≥S$120,000 No regulatory limit
>S$2m Any No regulatory limit

 

Interest Rates

Interest rates on credit cards are crucial to understand, as they affect how much you’ll pay for carrying a balance. 

In Singapore, credit card interest rates have been on the rise, as reported by The Business times. For example, HSBC announced an increase in its credit card interest rate to 27.8% effective from January 8, 2024. It’s important to note that these rates can vary among different banks and cards.

Rewards

Credit cards often come with rewards programs, offering points, cashback, or other benefits for your spending. These rewards can be a significant advantage, providing savings and perks based on your spending habits.

Why are Credit Cards Important for Foreigners?

  • Seamless Financial Transactions: For foreigners residing in Singapore, a credit card is more than a spending tool—it’s a key to seamless financial transactions. From the ease of online shopping to the necessity of booking services, having a credit card is almost indispensable.
  • Easily Navigate Singaporean Society: Credit cards accounted for 36% of all point-of-sale transactions and 42% of e-commerce dealings in 2022. For foreigners, this means integrating into the local economy with much more ease and being part of the digital-forward society.
  • Rewards and Perks: Credit cards in Singapore offer a wide array of benefits, from cashback to miles, making them an attractive choice for managing and maximizing financial resources. It’s about getting more bang for your buck with every transaction.
  • Your Financial Companion: Credit cards are financial companions that offer security, track spending, and often, a lifeline during emergencies. It’s about having a reliable financial backup wherever you go.

Eligibility Criteria for Foreigners

General requirements and specific banks may have additional conditions such as residency pass validity or type, which may or may not qualify foreigners for certain credit cards. It’s always best to check with the specific bank for their most up-to-date requirements.

1. Age: Most banks in Singapore offer credit cards to foreigners who are at least 21 years old

2. Valid Work Permit or Employment Pass: You’ll need a valid Employment Pass with at least six months remaining before expiration.

3. Minimum Income Requirement: For foreigners in Singapore, the minimum income requirement is slightly higher compared to Singaporeans or Singapore Permanent Residents. Most banks in Singapore require foreigners to have a minimum annual income of S$40,000 to S$60,000.

4. Credit Score or Credit History: Some banks may also require a minimum credit score or credit history. That said, it is best to take a look at your credit history and check for any discrepancy that might affect your credit score.

Tips for Foreigners: Improve Your Chances of Approval

Meet the Criteria

  • Have a Stable Income: Securing a credit card in Singapore hinges on proving you have a stable income. If you’re employed, ready your latest payslips. For the self-employed or entrepreneurs, your last tax return is your golden ticket. Showing that steady income flow reassures banks you’re good for the credit.
  • Meet the Age Threshold: You’ve got to be at least 21. Young adults, fret not; some banks offer student cards if you’re 18 and above. 

Boost Your Approval Odds

  • Build Your Credit History: Start small. Open a savings account with the issuing bank to establish a relationship. Another option is to apply for a secured credit card, backed by a deposit you make. Use it wisely to build a credit history that sings praises about your punctuality and responsibility.
  • Keep Debts Low: Aim to keep your debts under control—below 40% of your income is a good benchmark. You can also maintain good credit standing by paying off existing debts. It shows banks you’re not juggling more than you can handle.
  • Make Sure Your Information is Accurate: Incorrect information can lead to delays or, worse, a denial. Double-check those details. A typo shouldn’t stand between you and your credit ambitions.
  • Prepare the Right Documents: This may include passport, employment pass, proof of address, and income evidence.

Types of Credit Cards Available

There are different types of credit cards available on the market. However, financial experts advice in an interview with CNBC, “There are a lot of different types of offers; you have to find the one that fits your lifestyle and fits your needs the most.”

Cashback Credit Cards

Cashback credit cards offer a straightforward way to earn rewards by giving you a percentage of your spending back as cash. They’re ideal for those who value simplicity and flexibility in rewards, without the need for complex points systems. However, it’s essential to be mindful of potential annual fees and spending temptations that could outweigh the benefits.

Pros

  • Immediate Rewards: With cashback cards, you earn a percentage of your spend back, making every purchase slightly less painful on your wallet.
  • Simple to Understand: No points, no miles, just straightforward cash. 
  • Flexible Rewards: Cash doesn’t expire or require specific redemption conditions. Use it whenever, for whatever – a night out, bills, or saving up for something big.
  • Bonus Categories: Many cashback cards offer higher rates on everyday spending like groceries, dining, or fuel. It’s like getting a discount on life’s essentials.

Cons

  • Spending Temptation: May require a minimum spend to qualify for cashback. The allure of cashback can sometimes encourage unnecessary spending. 
  • Caps and Limitations: Cashback limits can cap the benefits. Some cards cap how much cashback you can earn in specific categories or overall, limiting the potential rewards on big spenders.
  • Annual Fees: That cashback can quickly be negated by annual fees. Do the math to ensure you’re actually coming out ahead. For instance, if your annual fee is around S$196 but the value of the cashback doesn’t equal or exceed S$196, then it may not be worth it to chase the cashback rewards.
  • Higher Interest Rates: If you carry a balance, the interest could dwarf your cashback earnings. Always aim to pay in full to truly benefit.

Rewards Credit Cards

Rewards credit cards offer benefits like points, miles, or cash back on your spending, tailored to various lifestyles and spending habits. Choosing the right card involves matching its rewards structure—whether for travel, groceries, gas, or general purchases—with your personal spending patterns to maximize benefits. 

Tara Falcone, Certified Financial Planner and founder of ReisUp, cautions against a common misconception with rewards credit cards. “People often ask, ‘how much do I need to spend to get this perk?’ That’s not the right question,” Falcone explains. “A better approach is to consider, ‘how soon can I offset this fee with my regular spending and lifestyle?’”

Pros

  • Accumulate Points: You earn points for purchases which can be exchanged for gifts, vouchers, or experiences.
  • Flexibility: Points can often be used for a variety of rewards, allowing you to choose what you value most. Additionally, points can sometimes be used internationally.
  • Bonus Categories: Many rewards cards offer extra points for spending in specific categories like dining or entertainment.
  • Introductory Offers: Issuers may provide generous sign-up bonuses that can be highly lucrative.
  • Added Perks: Some cards come with complimentary insurance, concierge services, and access to exclusive events.

Cons

  • Earning Structure Complexity: Understanding how to earn and redeem points can be complicated compared to straightforward cashback.
  • Reward Limitations: Points may have expiration dates or limitations on where and how they can be redeemed.
  • Annual Fees: These cards often come with higher annual fees, which can outweigh the benefits if you’re not earning enough points.
  • Spending Requirement: To reap the full benefits, you might need to meet certain spending thresholds, which can encourage more spending than planned.

Travel Credit Cards

Travel credit cards are designed for those with wanderlust, offering rewards like air miles, complimentary travel insurance, and airport lounge access to make globetrotting more rewarding and comfortable.

In an interview with CNBC, Bridget Mermel of Sullivan Mermel Inc. shared insights on selecting the right credit card. “If you love traveling and want to earn points toward that, it would make sense to get a travel rewards card. Start by thinking about what you’re looking for, and you’ll be able to find a card that works for you.”

Pros

  • Air Miles Accumulation: Spend on the card and earn air miles for flight redemptions. Supports a mobile lifestyle with travel-centric rewards.
  • Travel Benefits: Enjoy perks like lounge access, hotel upgrades, and travel insurance.
  • Currency Conversion: Often have lower fees for foreign currency transactions.

Cons

  • High Annual Fees: Can carry hefty annual fees that may not be worth it for infrequent travelers.
  • Niche Rewards: Rewards are primarily travel-focused, offering less value for non-travel expenditures.
  • Usage Requirement: Benefits are maximized only through regular use, which requires consistent travel activity.

Top Credit Cards for Foreigners in Singapore

At a Glance

Credit Card Interest Rate (p.a) Annual Fee Rewards Welcome Gift Promotions
Citibank Rewards Card 27.9% S$192.60 (waived for 1st year)
  • 10X Rewards on online, shopping, ride-hailing, food delivery, and online grocery shopping
  • 1X Reward on other retail spend
40,000 bonus Citi ThankYou℠ Points
  • 15% off with Pay with Points
HSBC Revolution Card 26.90% S$0
  • 10X rewards points on online and contactless transactions
  • 1X on all other spending
Samsonite ZELTUS 69cm Spinner Exp or S$150 cashback
  • New cardholders can receive a Samsonite ZELTUS 69cm Spinner Exp with built-in scale, worth S$680
  • S$150 cashback
Citi PremierMiles Card 27.9% S$196.20, including 9% GST
  • 1.2 Citi Miles per S$1 local spend
  • 2 Citi Miles per S$1 foreign currency spend
Up to 30,000 bonus Citi Miles
  • Earn 10 Citi Miles per S$1 spent on kaligo.com/bonus-miles
  • 7 Citi Miles per S$1 spent on hotel bookings worldwide on agoda.com/bonusmiles
UOB Absolute Cashback Card 27.80% S$196.20 (waived for 1st year)
  • 1.7% limitless cashback on all purchases
S$350 cash credit
  • $200 Cash Credits for min spend of S$1,000/month for 3 months
  • $150 Cash Credits for min spend of S$700/month for 3 months
DBS Woman’s World Card 27.80% S$196.20 (waived for 1st year)
  • Up to 10X DBS Points on online purchases
  • 3X DBS Points on overseas spending
  • 1X DBS Point on other purchases
Promotional offers subject to DBS’s terms and conditions
  • S$10 off and complimentary FoodPanda delivery on first purchase
  • 20% off at Club21.com

 

Recommendations:

  • For expats who want generous rewards on diverse spending categories: Citibank Rewards Card and HSBC Revolution Credit Card
  • For foreigners who love to shop: Citibank Rewards Card is ideal for those who shop frequently online, as it offers 10X Rewards on a variety of online transactions, including ride-hailing and food delivery. 
  • For foreigners who don’t want to pay an annual fee: The HSBC Revolution Credit Card is more suited for expats who prefer a card with no annual fee and a robust rewards system, offering 10X rewards points on both online and contactless transactions, making it highly advantageous for everyday use.
  • For those with a focus on travel: The Citi PremierMiles Card is an excellent option, providing a straightforward miles accumulation system with the added perk of no expiration on miles, alongside travel insurance and airport lounge access. 
  • For foreigners who want to enjoy unlimited cashback: The UOB Absolute Cashback Card offers a simple yet rewarding experience with its 1.7% unlimited cashback on all purchases, making it a great choice for expats who value simplicity and maximized returns. 
  • For high-earners who want generous rewards on online transactions: DBS Woman’s World Card caters to high earners with its generous rewards on online transactions and a higher points cap, although it’s worth noting that it doesn’t offer enhanced rewards for offline dining and entertainment.

citibank rewards card

1. Citibank Rewards Card: Best for Avid Shoppers Seeking Generous Rewards

The Citibank Rewards Card is tailored for those who love to shop and earn as they spend, offering an array of benefits, from generous rewards points to various redemption options, making every purchase more satisfying.

Features

  • Interest Rate: 27.9% p.a.
  • Rewards: Earn 10X Rewards (equivalent to 4 Miles) on online, shopping, ride-hailing, food delivery, and online grocery shopping, with 1X Reward on all other retail spend.
  • Additional Cashback: Earn additional 1% HSBC Everyday+ Cashback with your HSBC Everyday Global Account
  • Welcome Gift: New cardholders can receive a welcome gift of 40,000 bonus Citi ThankYou℠ Points upon meeting the spending criteria.

Fees

  • Annual Fee: S$192.60 (waived for the first year)
  • Late Payment Fee: Determined by credit card issuer
  • Foreign Currency Transaction Fee: N/A

Eligibility Criteria for Foreigners

  • Age: 21 years old
  • Minimum Income for Foreigners: S$42,000

Promotions

  • Enjoy 15% off when you use Pay with Points to offset your purchases or redeem attractive vouchers from our Redemption Catalogue this Lunar New Year. Now until 29 Feb 2024.

hsbc revolution credit card

2. HSBC Revolution Credit Card: Best for Digital Spenders Who Prefer Online without an Annual Fee

The HSBC Revolution Credit Card is a stellar choice for expats who favor online and contactless spending, offering an attractive 10X rewards point system without the burden of an annual fee.

The HSBC Revolution Credit Card is notably advantageous for expatriates due to its absence of an annual fee and no minimum spending requirement, making it cost-effective for everyday use. Additionally, the provision of 10X Reward points on online and contactless spending, inclusive of dining out and in-store shopping, renders this card highly beneficial for an expat’s lifestyle in Singapore. 

Features

  • Interest Rate: 26.90%
  • Rewards: Earn 10X rewards points (equivalent to 4 miles) on online and contactless transactions and 1X on all other spending, with no caps on reward points earned.
  • Welcome Gift: New HSBC cardholders can select one of the following:
    • Samsonite ZELTUS 69cm Spinner Exp with built-in scale, worth S$680; OR
    • S$150 cashback

Fees

  • Annual Fee: S$0
  • Late Payment Fee: S$100
  • Foreign Currency Transaction Fee: 3.25%
  • Overlimit Fee: S$40

Eligibility Criteria for Foreigners

  • Age: 21 years old
  • Minimum Income for Foreigners: S$40,000
  • OR provide a fixed deposit collateral of at least S$10,000

Promotions

  • New cardholders can receive a Samsonite ZELTUS 69cm Spinner Exp with built-in scale, worth S$680 or S$150 cashback

citi premiermiles card

3. Citi PremierMiles Card: Best for Frequent Travelers Looking To Accumulate Air Miles 

The Citi PremierMiles Card is a top-tier option for expats in Singapore with an eye on travel, offering a simple miles accumulation system, no expiration on miles, and additional travel perks such as airport lounge access.

If you travel frequently or anticipate incurring travel expenses, the Citi PremierMiles Card offers an appealing suite of benefits. Not only does it provide a straightforward miles earning rate on all purchases, but it also offers travel insurance coverage and the versatility of mile redemption options, ensuring that every dollar spent brings you closer to your next destination.

Features

  • Interest Rate: 27.9%
  • Rewards: Accumulate 1.2 Citi Miles for every S$1 spent locally and 2 Citi Miles for every S$1 spent in foreign currency.
  • Bonus Rewards: Renewal bonus of 10,000 Citi Miles annually.
  • Welcome Gift: New cardholders can earn up to 30,000 bonus Citi Miles as a welcome offer.
  • No expiry: Use your Citi Miles whenever you want.
  • Benefits: Enjoy two free visits annually to airport lounges around the globe. Visit the Citi PremierMiles Card website for more information

Fees

  • Annual Fee: S$196.20, including 9% GST.
  • Late Payment Fee: S$100
  • Foreign Currency Transaction Fee: 3.25%
  • Overlimit Fee: S$40

Eligibility Criteria for Foreigners

  • Age: 21 years old
  • Minimum Income for Foreigners: S$42,000

Promotions

  • Earn 10 Citi Miles per S$1 spent on kaligo.com/bonus-miles. Valid till 31 December 2024
  • Earn up to 7 Citi Miles per S$1 spent on hotel bookings worldwide on agoda.com/bonusmiles. Valid for bookings made now till 31 December 2024 and for stays until 30 April 2025.

UOB Absolute Cashback Card

 

4. UOB Absolute Cashback Credit Card: Best for Flat-Rate Unlimited Cashback on All Expenditures

The UOB Absolute Cashback Card offers an appealing 1.7% unlimited cashback on all expenditures without minimum spend requirements, standing out as one of the market’s most rewarding unlimited cashback cards.

This cashback card distinguishes itself with its high and limitless cashback rate, inclusive of traditionally non-rewarding spend categories, making it an excellent choice for expats who value simplicity and maximized returns on their spending across a broad spectrum of services and purchases.

Features

  • Interest Rate: 27.80%
  • Rewards: A flat, limitless cashback rate of 1.7% on all purchases, including typically excluded categories like insurance, healthcare, and school fees.
  • Welcome Gift: New cardholders may receive S$350 cash credit under certain promotional conditions.

Fees

  • Annual Fee: S$196.20, with the first year’s fee waived.
  • Late Payment Fee: S$100
  • Foreign Currency Transaction Fee: 3.25%
  • Overlimit Fee: S$40

Eligibility Criteria for Foreigners

  • Age: 21 years old
  • Minimum Income for Foreigners: S$40,000
  • OR fixed deposit collateral of at least S$10,000

Promotions

  • Enjoy $200 Cash Credits if you meet the minimum spend of S$1,000 per month for 3 consecutive months from the date of card approval. First 100 customers to meet the spend requirement.
  • Enjoy $150 Cash Credits if you meet the minimum spend of S$700 per month for 3 consecutive months from the card account opening date. First 200 customers to meet the spend requirement.

DBS Womans World Card

5. DBS Woman’s World Card: Best for High Reward Points on Online Transactions

The DBS Woman’s World Card, open to all regardless of gender, is an excellent choice for those earning S$80,000 per annum or more, offering generous rewards on online transactions including travel bookings, with a higher points cap than some competitors.

The DBS Woman’s World Card is particularly appealing for those who frequently shop online, including for travel bookings, offering an attractive miles earning rate. However, it’s worth noting that it doesn’t offer enhanced rewards for offline dining and entertainment, so it may be beneficial to pair it with another card if these are significant spending categories for you.

Features

  • Interest Rate: The card has an interest rate of 27.80% p.a.
  • Rewards: 
    • Earn up to 10X DBS Points (equivalent to 4 miles per S$1) on online purchases
    • 3X DBS Points (1.2 miles per S$1) on overseas spending
    • 1X DBS Point (0.4 miles per S$1) on other purchases.
  • Welcome Gift: Cardholders may receive promotional offers as a welcome gift, subject to DBS’s terms and conditions.

Fees

  • Annual Fee: S$196.20, with the first year’s fee waived.
  • Late Payment Fee: S$100 for outstanding balances above S$200.
  • Foreign Currency Transaction Fee: 3.25%
  • Overlimit Fee: S$40

Eligibility Criteria for Foreigners

  • Age: 21 years old
  • Minimum Income for Foreigners: S$80,000

Promotions

  • First-time shoppers can get S$10 off and complimentary FoodPanda delivery on your initial purchase of at least S$15. Use Code: DBS23NEW. Valid till 31 March 2024
  • Returning shoppers can save S$12 on FoodPanda orders of S$60 or more. Use Code: DBSXXX12. Valid till 31 March 2024
  • Take 20% off at Club21.com. Use Code: DBS20. Promotion is valid till 30 June 2024

Step-by-Step Application Guide

  1. Choose the Right Card: Start by selecting a credit card that aligns with your spending habits and financial needs. Consider factors like rewards, fees, and eligibility criteria.
  2. Check Eligibility: Ensure you meet the minimum income requirement and possess a valid work permit or Employment Pass in Singapore. Most credit card issuers require foreigners to have a minimum gross annual income of S$40,000.
  3. Gather Required Documents: Typically, you’ll need your passport, Employment Pass, proof of income (e.g., Income Tax Notice of Assessment, latest payslips or tax returns), and a bank statement or utility bill for address verification.
  4. Submit Application: Apply online through the bank’s website or visit a branch in person. Online applications are usually faster and more convenient.
  5. Await Approval: The bank will review your application and conduct a credit check. Approval times can vary, so be patient.

Required Documents

The required documents may vary per credit card company. However, here are some of the most common requirements:

  • Valid Passport(s) (with at least 6 months’ validity and for all nationalities)
  • Employment Pass (EP or S Pass only with at least 6 months’ validity
  • Latest billing proof dated within the last 6 months with your full local residential address if it differs from your NRIC address 
  • Income Documents, such as the latest computerised payslip or company letter certifying Employment and Monthly Salary within 4 months.

Managing Your Credit Card Responsibly

  • Timely Bill Payments: Ensure you pay your credit card bills on time to avoid interest charges. As Danielle Harrison of Harrison Financial Planning notes, “Do not put purchases on credit cards to get rewards points if you aren’t paying off your entire bill monthly. The interest charges will easily wipe out any bonuses you received.”
  • Credit Score Maintenance: A good credit score is key in Singapore. It affects loan approvals, interest rates, and more. Responsible credit card usage is critical to maintaining this financial reputation.
  • Monitor Your Spending: Keep an eye on your expenses to ensure they align with your budget. This habit helps prevent overspending and the accumulation of high-interest debt.
  • Emergency Fund Caution: Bridget Mermel of Sullivan Mermel Inc. advises against relying on credit cards as an emergency fund, highlighting the psychological and financial strain it can cause: “When you use your credit card as an emergency fund and can’t pay it off in full, it creates what’s called debt drag because it makes people feel bad for having these balances.”

Remember, while credit cards can offer rewards and financial flexibility, they must be used wisely to avoid costly mistakes and maintain financial health.

Final Word

Credit cards serve as an essential tool for foreigners, not just for convenience but as a crucial part of managing personal finances. The right credit card can unlock a world of rewards and financial flexibility, provided it aligns with your spending habits and lifestyle. Using credit cards as part of a well-thought-out financial strategy, expatriates can ensure they reap the benefits without falling prey to common pitfalls.

Key Takeaways:

  • If you prefer cash rewards, a cashback card like the UOB Absolute Cashback Card, which offers 1.7% unlimited cashback on all purchases, might be best.
  • If you travel frequently, a card like the Citi PremierMiles Card, which offers air miles and travel perks, could be ideal.
  • If you’re concerned about fees, a card like the HSBC Revolution Credit Card, which has no annual fee and offers 10X rewards points on online and contactless transactions, could be suitable.

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