The Business Times
business-time-50
BRUNCH
·
SUBSCRIBERS

Credit – what is it good for?

Young adults are gaining easier and earlier access to credit with new products such as Buy Now Pay Later, but may not be getting to grips with the consequences

google-preferred-sourceAdd BT as a preferred source
Benjamin Cher

Benjamin Cher

Published Fri, Feb 24, 2023 · 04:00 PM
    • Credit card penetration in Singapore is high: Credit Bureau Singapore says over 2.4 million unique entities or persons have more than four credit card accounts.
    • Late payments on unsecured credit cards are on the rise in the 21-29 year old demographic, shows data from Credit Bureau Singapore.
    • Associate professor Pearpilai Jutasompakorn of Singapore Institute of Technology notes that having different family and education backgrounds equips graduates with differing levels of financial literacy.
    • Credit card penetration in Singapore is high: Credit Bureau Singapore says over 2.4 million unique entities or persons have more than four credit card accounts. PHOTO: BT FILE
    • Late payments on unsecured credit cards are on the rise in the 21-29 year old demographic, shows data from Credit Bureau Singapore. PHOTO: BT FILE
    • Associate professor Pearpilai Jutasompakorn of Singapore Institute of Technology notes that having different family and education backgrounds equips graduates with differing levels of financial literacy. PHOTO: SIT

    CREDIT is becoming widely available in Singapore, with a plethora of products offered from traditional unsecured credit cards to alternative lines such as Buy Now Pay Later (BNPL).

    Yet credit is something of a double-edged sword. It helps those with cash flow issues and rewards good repayment behaviour with better interest rates for loans. It’s also an easy way to rack up crushing debt with long-term consequences for future financial decisions such as buying a home.

    Statistics from Credit Bureau Singapore (CBS) shows that 82 per cent of the 512,084 new credit applications in the fourth quarter of 2022 were for credit cards, with the rest for personal, real estate, motor vehicle loans and overdraft facilities.

    Credit/Debit cardsBrunch

    TRENDING NOW

    Third-gen owner Edmond Wong is not concerned about “vanity” metrics, and instead aims to “sustain a good business”.

    Profit with purpose: Kim Choo Kueh Chang’s pivot from public listing to protecting heritage

    Singapore Kitchen Equipment was founded by husband-and-wife duo Sally Chua (left) and Alan Lee.

    Singapore Kitchen CEO, senior manager charged with alleged fraud, falsifying accounts; both to stay in jobs for now

    The departure of food manufacturing operations from Singapore may not necessarily be reason for concern.

    Yeo’s, Tiger Beer and now Gardenia – flight of food manufacturing from Singapore might be just as planned

    Be wary of sales pitches that dangle high income but are not explicit on where risks lurk.

    Should you sacrifice some CPF Life income in favour of ILPs? Tread carefully

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More