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Brief: Harsher Punishment For Singaporeans Who Fail To Pay Their Credit Card Bills On Time
What Is The News About:
- From 1 June 2017, late payment charge for OCBC Credit Cards will be revised from $80 to $100. The charge for NTUC Plus! Visa Credit Card will also be revised to $100, from the previous $60.
- This move came as no surprise, given that DBS Bank has already done so on 1 May 2017.
- DBS Bank raised their late payment charge from $80 to $100, for any card with an outstanding balance of more than $50. Annual fee for POSB Everyday Card is increased to $192.60 for principal card and $96.30 for supplementary card.
Read also: 5 Reasons To Have Good Credit Score
What Does It Mean For Singaporeans:
- With the harsher late payment fee, Singaporeans should avoid incurring any late payment charges. Spending within your means, and monitoring your expenses closely is definitely the best way to avoid incurrence of such nasty incurrence cost.
- The best way to avoid late payment charges will be to set up automatic Giro Payment System so that the credit card bills are deducted automatically on time. One can also set up a reminder on his calendar to help him do so.
- Other local banks are expected to follow suit and raise the late payment fees for their credit cards too.
- These charges are usually affected by the SIBOR (Singapore Interbank Offer Rate). How the rate is determined is by ranking the interest rate submitted by at least 12 participating banks for each maturity. On each business day from 11am to 11.10am, the contributed rates will be ranked in order, with the top and bottom quartiles excluded, with the remaining rates averaged to give us the rate.
- One point to note is that the SIBOR is closely correlated to the US Fed funds rate.