Secured Credit Cards in Singapore: Ultimate Guide 2025

With rising debt among young adults, particularly Gen Zs and Millennials, finding a credit card that balances accessibility and safety is crucial. Secured credit cards, easier to obtain than unsecured ones, offer a practical solution for building or rebuilding credit without the typical approval challenges.

With lower approval thresholds and the safety net of a security deposit, these cards provide a pathway to financial stability, especially for those grappling with debt. As more Singaporeans explore secured credit cards as a viable option, understanding the benefits and potential challenges is crucial.

This guide will explore the best secured credit cards available in Singapore, how secured credit cards work, and key considerations before applying.

What Does “Secured Credit Card” Mean?

Secured credit cards require holders to have collateral on the cards, often made in the form of a fixed deposit. They are designed for people with bad credit and are used to help individuals build their credit history. The financial institutions can use the fixed deposit to offset the debt if an individual defaults, which is why it is considered ‘secured’ from the banks’ point of view. The credit limit on secured credit cards is often determined by the fixed deposit you put down in your application.

Features of Secured Credit Cards

When exploring secured credit cards, understanding the key features is essential. These cards offer unique advantages and requirements compared to traditional unsecured credit cards. Here’s what you need to know:

Credit Limit

The credit limit on a secured credit card is directly tied to the amount of collateral you provide, typically ranging from 80% to 100% of your deposit. For example, if you deposit S$10,000, your credit limit will usually be set between S$8,000 and S$10,000. This structure helps ensure that your spending stays within manageable limits, reducing the risk of accumulating unmanageable debt.

Interest Rates

Interest rates on secured credit cards are often lower than those on unsecured cards, making them a more affordable option for those who may not qualify for lower rates otherwise. However, it’s important to note that interest is still charged on any balance not paid by the statement due date, just like with a regular credit card. Comparing these rates to unsecured options can reveal significant savings.

Collateral Requirements

To obtain a secured credit card, you must provide a security deposit, usually starting at S$10,000. This deposit acts as collateral, protecting the issuer in case you are unable to pay your credit card bill. The deposit typically needs to be placed in a fixed deposit account with the same bank issuing the card.

Fees and Charges

Secured credit cards come with various fees, including annual fees, cash transaction charges, and possible late payment fees. These fees can vary significantly between card issuers, so it’s crucial to review them carefully. For instance, some cards might offer a lower annual fee but charge higher fees for cash transactions or late payments.

Credit Reporting

One of the major benefits of using a secured credit card is that your usage and repayment history are reported to credit bureaus. This can positively impact your credit score if managed responsibly, making secured credit cards a valuable tool for rebuilding or establishing credit.

Pros and Cons

Like any other credit card, a secured credit card has perks and limitations. Knowing the good and the not-so-good about the card can help you decide if it’s the right card for you.

Pros

• Enjoy interest-free days – on all the purchases made on the card if you pay your balance in full by the due date.
• Perfect for those with a bad credit score – it is an excellent alternative if you have bad credit.
• Can help boost credit score – used to help improve your credit history and credit score, granted that the borrower will pay his/her monthly bills on time. 

Cons

• Limited credit – your credit is limited to the amount of money you deposit.
• Chances of high interest – while there is an interest-free period, make sure to only spend what you can repay to avoid unnecessary fees and interest. 
• Annual fees – a secured card typically has annual fees, so look carefully if the extra features of the card is enough to justify the annual fee. 
• Risk on your deposit – There is the risk of losing your deposit if you do not make the repayments on or before the statement’s due date.

Best Secured Credit Cards in Singapore 2024

Major banks in Singapore offer secured credit cards if the customers meet the eligibility requirements. Here is a look at some of the best picks secured card providers in the market. Different secured credit card options have different perks and a designed to suit a wide range of customers.

At a glance:

1. DBS Live Fresh Card: Best for Maximizing Cashback on Shopping and Transport

About

The DBS Live Fresh Card is a cashback credit card designed for individuals who want to maximize their rewards on everyday expenses. It offers attractive cashback rates on shopping and transport, making it ideal for those who frequently spend in these categories.

List of Key Features

• Earn up to 6% cashback on shopping and transport spend.
• Additional 5.7% cashback on shopping (capped at S$50/month) and transport (capped at S$20/month).
• Enjoy 0.3% unlimited cashback on all other spend.
• Special promotions with select merchants like Challenger, Lazada, and Puma.

Pros and Cons

Pros:

• High cashback rates on shopping and transport categories.
• Additional exclusive deals and discounts with popular merchants.
• Waived annual fee for the first year, providing cost savings for new cardholders.

Cons:

• Cashback is capped at S$50/month for shopping and S$20/month for transport, which might limit high spenders.
• The 0.3% unlimited cashback on all other spend is relatively low compared to the cashback offered in specific categories.

How to Apply

To apply for the DBS Live Fresh Card, visit the DBS website and complete the online application form. Applicants must be at least 21 years old with a minimum annual income of S$30,000 for Singaporeans and PRs, or S$45,000 for foreigners. You’ll need to provide identification and proof of income documents, and approval typically takes a few days.

2. HSBC Revolution Card: Best for Earning Rewards on Online and Contactless Spending

About

The HSBC Revolution Card is a rewards credit card designed for those who frequently make online and contactless transactions. With no annual fee and a straightforward rewards structure, it offers great value without the need for a minimum spend.

List of Key Features

• Earn 10X reward points (equivalent to 4 miles or 2.5% cashback) on online and contactless spend.
• Start earning rewards with no minimum spending requirement.
• Enjoy lifetime fee waiver with no annual fees ever.
• Reward points are capped at 10,000 points per calendar month on eligible purchases.

Pros and Cons

Pros:

• High rewards rate on online and contactless transactions, ideal for digital-savvy users.
• No minimum spend and no annual fees make it accessible and cost-effective.
• Generous rewards structure without the need to track spending categories.

Cons:

• The monthly cap of 10,000 reward points might limit the rewards for high spenders.
• Limited rewards rate on non-online or contactless transactions, which may not suit all spending habits.

How to Apply

To apply for the HSBC Revolution Card, visit the HSBC Singapore website and fill out the online application form. Applicants must be at least 21 years old with a minimum annual income of S$30,000 for Singaporeans and PRs, or S$40,000 for foreigners. You will need to provide necessary identification and proof of income documents.

3. UOB UnionPay Card: Best for Frequent Travelers Seeking Petrol and Duty-Free Discounts

About

The UOB UnionPay Card is a versatile cashback card tailored for both local and overseas spending. It offers significant discounts on petrol and exclusive privileges at international duty-free shops, making it ideal for frequent travelers and daily commuters.

List of Key Features

• Enjoy up to 21.6% savings on petrol purchases at SPC.
• Receive up to 10% off at over 100 international airport duty-free shops.
• Benefit from instant contactless payments with UnionPay QuickPass.
• Gain access to the exclusive Complimentary Sands LifeStyle Elite Tier Membership.

Pros and Cons

Pros:

• Significant savings on petrol, ideal for those who frequently drive.
• Attractive discounts at international duty-free shops, benefiting regular travelers.
• Contactless payment convenience with UnionPay QuickPass.
• Exclusive membership perks with Sands LifeStyle Elite Tier Membership.

Cons:

• Limited to specific merchants and locations, which may not cater to all users.
• Cashback on general spending may not be as competitive as other cards.
• The benefits are more tailored toward frequent travelers and drivers, potentially limiting its appeal to others.

How to Apply

To apply for the UOB UnionPay Card, visit the UOB Singapore website and complete the online application form. Applicants must be at least 21 years old, with a minimum annual income of S$30,000 for Singaporeans and PRs, or S$40,000 for foreigners. Alternatively, you can secure the card by providing a fixed deposit of at least S$10,000 if income criteria are not met.

4. POSB Everyday Card: Best for Families Looking to Save on Daily Essentials and Attractions

About

The POSB Everyday Card is a versatile cashback card that offers significant savings on daily essentials, family activities, and fuel. It’s particularly well-suited for families and individuals looking to maximize their everyday spending with attractive discounts and rebates.

List of Key Features

• Enjoy half-price admission to popular family destinations like Bird Paradise and the Singapore Zoo.
• Save up to 20.1% on fuel purchases at SPC, making it ideal for frequent drivers.
• Get 50% off admission tickets to top attractions such as Bird Paradise, Singapore Zoo, River Wonders, and Night Safari.

Pros and Cons

Pros:

• High cashback and discounts on family activities, making it great for families.
• Substantial fuel savings, beneficial for those who drive frequently.
• Waived annual fee for the first year, reducing initial costs.

Cons:

• The card’s benefits are more tailored toward specific categories, which may limit its appeal to users who don’t spend in these areas.
• Cashback caps may restrict high spenders from maximizing their benefits.

How to Apply

To apply for the POSB Everyday Card, visit the POSB website and fill out the online application form. Applicants must be at least 21 years old with a minimum annual income of S$30,000 for Singaporeans and PRs, or S$45,000 for foreigners.

5. CIMB Visa Signature Card: Best for Frequent Travelers and Shoppers in Singapore, Malaysia, And Indonesia

About

The CIMB Visa Signature Card is a cashback card designed for those who want to maximize their savings across various categories, including dining, retail, and lifestyle. It offers a wide range of discounts and perks, making it ideal for frequent travelers and shoppers in Singapore, Malaysia, and Indonesia.

List of Key Features

• Enjoy significant discounts on family attractions, making it perfect for family outings.
• Save up to 20.1% on fuel at SPC, ideal for frequent drivers.
• Enjoy 10% cashback on online shopping, groceries, pet shops and veterinary services, beauty & wellness, and cruises.
• Benefit from travel discounts and coverage up to S$500,000, providing peace of mind while traveling.

Pros and Cons

Pros:

• Extensive discounts and perks across multiple categories, catering to a wide range of spending habits.
• Significant savings on family activities and fuel, enhancing everyday spending.
• Valuable travel insurance coverage, beneficial for frequent travelers.

Cons:

• The card’s benefits are region-specific, which may limit its appeal to those who do not travel frequently to Malaysia and Indonesia.
• Cashback and discounts are heavily category-based, which may not appeal to all users.

How to Apply

To apply for the CIMB Visa Signature Card, visit the CIMB Singapore website and complete the online application form. Applicants must be at least 21 years old with a minimum annual income of S$30,000 for Singaporeans and PRs, or S$40,000 for foreigners.

Recommendation

For those seeking maximum rewards with no annual fee, the HSBC Revolution Card stands out with 10X reward points on online spending. If you’re looking for cashback on daily essentials, the POSB Everyday Card offers up to 10% rebates, though it comes with a waived first-year fee.

How to Apply for a Secured Credit Card in Singapore

Applying for a secured credit card in Singapore is a straightforward process that can be completed either online or in-person. Here’s a step-by-step guide to help you through it:

1. Determine Eligibility: Different banks have varying eligibility requirements for secured credit cards. It’s important to review these criteria to ensure you qualify. Below are the basic eligibility criteria to consider:

• Age: You must be at least 21 years old to apply.
• Income:
  • For Singaporeans and Permanent Residents (PRs), a minimum annual income of S$30,000 is required.
  • Foreigners typically need to show an income of S$40,000 or more.
  • Alternatively, if you don’t meet the income requirements, you can provide a fixed deposit of at least S$10,000 as collateral.

2. Prepare the Required Documentation: Banks typically request certain documents when applying for a secured credit card. Below are the common document requirements:

• Identification: NRIC for Singaporeans and PRs or Passport for foreigners.
• Proof of Income: This could be your latest Income Tax Notice of Assessment, recent payslips, or CPF contribution statements.
• Bank Statements: If you are using a fixed deposit as collateral, you’ll need to provide relevant bank statements.

3. Application Process:

• Online: Visit the bank’s website and complete the online application form. You’ll need to upload your documents and follow the prompts to submit your application.
• In-Person: Alternatively, you can visit a branch to fill out a physical application form and submit your documents. The bank staff will assist you in setting up a fixed deposit account if required.

4. Await Approval: Once submitted, your application will be reviewed. Approval times can vary, but you’ll typically receive a response within a few days.

5. Activate Your Card: Upon approval, your secured credit card will be mailed to you. Follow the bank’s instructions to activate your card and begin using it.

Personal Loan vs Secured Credit Card

While a secured credit card might offer some credit, the limit may not be sufficient to cover the entire cost. A personal loan, with its larger loan amount and fixed repayment terms, would provide the necessary funds and a structured plan to repay the debt over several years, making it a more suitable option.

FAQs

1. How Fast Can You Get Approval for a Secured Credit Card?

You must visit your local bank or call them to apply for a secured card. After that, you will deposit your collateral to a fixed deposit account. The process may take some time and is different in different banks. It is, however, a seamless process for customers applying for the card from their regular bank. It will take a little longer if you’re a new customer.

2. Can A Bank Turn Me Down for A Secured Credit Card?

Every bank has its specific eligibility requirements. The bank can turn you down if you do not meet their requirements. If they all decline your application, you can opt for a prepaid credit card that works almost the same.

3. How Do I Improve My Credit Limit with a Secured Credit Card?

Your bank will set a credit limit and will likely cap it at the amount of your security deposit held by the banks. In most cases, you will not be able to raise the amount, but if you need to increase the limit, you will need to take to your bank to understand the process involved.

4. Can I Apply for A Secured Card with A Poor Credit History?

Banks often decline an application for an unsecured credit card if you have no credit history or have a poor credit score. That is why you are better off applying for a secured credit card to get the card that suits your need. Talk to your bank and learn the different types of credit cards available so that you can choose the best credit card option to suit your needs.

5. What Happens If I Need to Withdraw the Security Deposit?

You must close your secured credit card to withdraw your deposit and settle the outstanding balance. The payments might take a few days to process, which can delay the time you get your deposit.

Closing

Secured credit cards in Singapore require collateral, typically in the form of a fixed deposit, usually starting at S$10,000. These cards are best suited for individuals looking to build or rebuild their credit history, particularly those with poor or no credit.

Key Takeaways:

• Secured credit cards help build credit for those with poor or no credit history using a fixed deposit as collateral.
• Tied to your deposit, credit limits help manage spending and lower debt risk, with generally lower interest rates.
• For larger expenses, a personal loan may be a better option, offering higher limits and structured repayment plans.

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