Boosting Credit Card Rating

Credit history and scores can play a critical role in how much you can purchase and whether you will get loans in future. With the burgeoning credit card segment in Singapore, you need to ensure your credit card points are the highest possible. Even the amount of rewards credit card companies provide can help you save money. Here are some ways you can achieve this objective.

Timely payments

Payment history and patterns play a critical role in what your credit card points look like. If you have been making partial payments all along and have accumulated heavy interest over the years then chances are you credit card points will not be that good. On the other hand, if you diligently make sure to repay the entire amount spent each month and incur no interest, you credit score will be almost perfect. If you have defaulted against a payment or gone past the due date, then too it can hamper your credit score. Make sure that you repay the credit card amounts within the due date and that you pay off the outstanding amount in full each time you use the card.

Your liabilities

Singapore is a shopper’s paradise. That coupled with the ‘buy now pay later’ approach of credit card companies can set a deadly financial trap for you if you are not careful. If you have a huge amount of liabilities on your existing mortgage, loans and other credit cards, your credit card points will suffer. Make sure to clear off as much of the liabilities as you can to improve your score.

Credit history timelines

If you have had a long business association with the bank, your credit card points are likely to be better than someone with a more recent history with the same bank. Depending on how much credit you have or the types of credit too, it can affect the credit card points you have.

How to improve reward points

A rewards credit card is a great way to save on cash when you shop in Singapore. There are numerous credit card companies like DBS Singapore and others, which have a generous rewards points program. Many of the rewards credit card schemes help you save towards retirement, get access to discounted car deals as well as convert earned miles into restaurant meals or hotel accommodations. You can even use accumulated rewards credit card points towards your next vacation at the best destinations in the world! Since they are so beneficial, here are some ways to get the best rewards credit card scheme:

- Low rates: The lower the interest rate on the card the sooner you can pay off liabilities and earn your rewards. Try to avoid 0% reward credit card offers because the rate after the promotional period is unusually high.

-      Time investment: Any rewards credit card program will take time to materialize. Therefore, be prepared to wait it out before you start seeing points accumulate.

-      Expiry dates: There is typically an expiry date associated with any rewards credit card program. Therefore, make sure you use the accumulated points before the date ends.