Credit Wise FAQs

Question If my card offers a grace period, does that mean my purchases are interest-free, even when I carry a balance from month-to-month?
Answer No. If you carry a balance, the issuer will charge interest from the date of posting or purchase (depending on issuer policy) on all new purchases. Generally, your purchases are interest-free only when you meet all of the following criteria:

  1. Your card offers a grace period.
  2. You start the billing cycle with a zero balance.
  3. You pay all new purchases in full by the due date.

(Note: Most cards do not offer a grace period on cash advances.)
Back to Top
Question Since most credit card issuers use some form of the average daily balance method for calculating interest, will I save more money (when carrying a balance from month to month) if I send in my payment early, rather than waiting until the due date?
Answer Yes. Because the interest "clock" is ticking daily, the sooner the lender posts your payment, the less interest you have to pay.
Back to Top
Question How can I prevent someone using my personal information to apply for credit in my name?
Answer When someone wrongfully obtains and uses another person's personal data in some way that involves fraud or deception, typically for economic gain, it's called identity theft.

Steps you can take to reduce the risk of your identity being stolen include:

  • Check your credit report at least once a year. Investigate if you find accounts that aren't yours.
  • Rip up, or better yet, shred, any credit card applications, bank or billing statements, and any other sensitive documents.
  • If you don't get a bill for one of your credit cards in any given month, call the issuer immediately. Don't just assume you're off the hook that month.
  • Use a lockable mailbox if possible for incoming and outgoing mail (especially bills).
  • Sign up for Credit Bureau’s (Singapore) My Credit Monitor Service.

Learn More About Identity Theft

Find Out More About Credit Bureau’s (Singapore) My Credit Monitor Service
Back to Top
Question Can a creditor turn my account over to a collection agency if I am paying something, even $1, on the account?
Answer Yes. A creditor can turn your account over to a collection agency if you do not meet the terms of the account. That means if you are late with a payment, or make a partial payment, the creditor has the ability to turn your account over to a collection agency.
Back to Top
Question Will declaring bankruptcy help my credit history since I will no longer owe any debts?
Answer No. Bankruptcy is one of the most serious marks on a credit report, and it can stay there for up to six years, making it more difficult and expensive to get credit. In addition, bankruptcy does not always wipe out all debts, so you may still owe some debts, depending on your situation.
Back to Top
Question How will I know if my credit application is denied?
Answer Upon denying credit, lenders may direct you to Credit Bureau (Singapore) to obtain your credit report. You can receive a copy of your credit report free-of-charge if you visit the Credit Bureau within 30 days from the date of enquiry conducted by the lender. In some cases, the lender may also write to you to inform you that your application has been turned down.
Back to Top
Question If I seek help from a non-profit counselling agency, will it be reflected in my credit report?
Answer Yes, if you are under the Debt Management Program with Credit Counselling Singapore, it will be reflected in your credit report.
Back to Top