Difference Between Payday Loans And Credit Card Cash Advance

If you need some extra cash, there are as many options in Singapore as there are stars in the sky. Okay, maybe not that much, but you get the point. From personal loans to payday loans, secured loans to unsecured loans, and credit cards to credit card cash advances, you can borrow money from practically any kind of financial institution. But how do you know which is the best kind of loan for you? Here we will focus on 2 kinds of personal loans – payday loans and credit card cash advances – to give you an idea of the options available to you.

Payday Loan:

This is a confusing type of loan, but the clue is in the name itself. A payday loan is the kind of personal loan where you receive the loan based on your salary, and you pay it back along with interest by your next payday or thereabouts. Payday loans are usually for small amounts, and small tenures – the terms may vary from one moneylender to another. These loans are not given by banks but by licensed moneylenders or loan companies.

Credit Card Cash Advance:

Credit card cash advance is a cash withdrawal you can make with your credit card. This depends, not on your salary, but your credit limit. For example, if your credit limit is S$8,000, and your existing card dues are around S$2,500, you can take a cash advance of up to S$5,500, irrespective of what your salary is. The repayment amount will be mentioned from the next bill onwards and you can pay it just how you pay your credit card bills.

Difference Between Payday Loan and Cash Advance:

Payday Loan	Credit Card Cash Advance
This is given by moneylenders and loan companies.	This is given by credit card companies and banks.
The interest rates can be negotiated between you and the lender.	The interest rates are non-negotiable and possibly higher than that on payday loans and your credit card usage charges.
There are usually few hidden charges.	There may be several hidden charges including transaction fees, withdrawal fees, application fees, service fees, etc.
Repayment period is flexible and can be negotiated.	Repayment has to be made every month along with the credit card bill.
Your credit score is not very important in getting approval for a payday loan.	Your credit score could be checked by the bank of financial institution before the cash advance is given to you.
Tenure of the loan is short – from 1 week to a few months.	There is no limit on the tenure as long as you repay the loan regularly and on time.

These two kinds of loans have 3 important similarities, though: a) they are easy to obtain; b) they are both unsecured loans; c) interest is compounded on a daily basis for both. This means that both of the options are very expensive, and you may end up paying more than double the money you borrowed back to the lender even within a short period. If your need for money is not urgent, it would be better to go for a personal loan from a bank than go for any other options.

Credit Cards from HSBC Bank

HSBC Bank is one of the largest banks in the world which offers extremely good financial products and services. It was established in the year 1865 by Sir Thomas Sutherland. The bank’s headquarter is in London, United Kingdom. As far as the assets are concerned, HSBC bank is the fourth largest bank across the globe. HSBC Bank, also known as Hong Kong and Shanghai Bank has more than six thousand branches spread across eighty countries and territories. These include Asia, Africa, Oceania, Europe, North America, South America, etc. It deals in four major sectors that include Global Private Banking, Wealth Management and Retail Banking, Investment Banking and Global Banking.

A credit card can definitely prove to be your best friend when it comes to shopping, traveling, dining or entertainment needs. There are a myriad of features and benefits offered by the credit cards that are offered by Hong Kong and Shanghai Bank. The credit cards are tailored to meet all the needs and requirements of the changing customers. Going out with your family for a dinner followed by a movie or traveling overseas to attend a business meeting – a credit card is always there at your service to help you with all your demands.

Types of credit card offered by the Hong Kong and Shanghai Bank

Hong Kong and Shanghai Bank cares about its customers and offers different credit cards that can be used as per the requirements of the different customers.

• HSBC Premier MasterCard Credit Card
• HSBC Advance Visa Platinum Credit Card
• HSBC Vis platinum credit Card
• HSBC Revolution Credit Card

The HSBC Premier MasterCard credit card allows you to enjoy five percent cashback on all the payments of your phone bills, TV bills, internet bills, etc. You can also avail cashback on all the grocery shopping that you do using your credit cards. Enjoy instant discount of up to 14 percent at both Caltex service station and Shell fuel station. As cash rebate you can earn 6 percent at Shell stations and 5 percent at Caltex service stations. You can also get complimentary golf privileges with this particular credit card. The insurance coverage offers an amount of SGD 500,000 when you use you

With the HSBC Advance Visa Platinum credit card, you can enjoy 10X rewards points on dining, entertainment and online shopping. You can also get 1X rewards point for every SGD 1 that you spend using your credit card. You can also avail 14 percent discounts at both Shell station and Clatex Petrol Stations. The card is also equipped with Visa pay Wave feature which increase the security on your credit card making your transactions safer. You can also avail contactless payment features at several merchant outlets using this particular feature on your HSBC credit card.

The HSBC Platinum Card allows you to enjoy 2 percent rebate on all your dining spends when you use the card for paying your bills. Also, you can get a 14 percent instant discount at Shell and Caltex stations.

You must understand that a credit card must be used wisely. HSBC credit cards can prove to a boon for you if you can control your expenditures. Make the monthly payments on time and avoid late payments completely. Avoid using the credit card if you are unsure of your repayment capabilities. Check your credit score from time to time and work towards making it better. A good credit score can always help you to get a loan with attractive rates of interest. Choose the card and suits all your purposes and enjoy the peace of mind that you deserve.

Shop Freely With Citibank Rewards Card

You go shopping one day and select the dresses you like, but while billing you realise that you do not have enough cash in your wallet to pay for it. You wonder what to do as you really want those dresses. In such a situation, if you have a credit card, you can use it to make the payment.

A credit card is a small plastic card issued by banks and financial institutions which allows you to buy goods and services on credit. There is a limit on the amount of money you can borrow through these cards and banks issue a credit card bill or statement at the end of every credit cycle, which mentions the amount you have borrowed. You have to repay the money within a period of time. If you do not pay the full amount and have an outstanding balance, then you will have to pay an interest on the unpaid sum. It is advisable that you do not cross your credit limit.

There are many banks in Singapore which provide credit cards. One of them is Citibank. It is one of the oldest and leading banks in the world. It was established in 1812 and has a significant presence in different parts of the world today. The bank provides a wide range of products and services to its consumers. 

Citibank credit cards are very popular around the globe. The bank offers different types of credit cards which are designed to meet consumer needs. So, if you love to shop, you can choose to apply for a Citibank Rewards card. With this card, you get a chance to earn 10 reward points on every dollar that you spend through your Rewards Card for buying clothes, shoes or bags online or at departmental stores. You can redeem these points for anything you like such as air miles or dining and can avail discounts on products when you shop online. For example - If you purchase anything from Luxola, Shopback, Klareti, etc., using this credit card, you will get a 30% discount. Apart from this, the bank provides many promotional offers on the card. The current offer will earn you vouchers worth more than $1500 from reputed companies when you apply for this card.

To get the Citibank Reward Card, you need to be a Singapore citizen or permanent resident who is at least 21 years old and your yearly income should not be less than S$30,000. In case you are a foreigner, your must have a minimum annual income of S$42,000. Other than this you need to provide a copy of your passport, income proof and CPF statement.

Many people consider the application process a very painful one, but applying for a Citibank credit card is very easy and fast. You just have to visit the bank’s website, choose the card you want and click on the ‘Apply Now’ button. On clicking the button, a window containing the application form will pop up on the website. You can fill up all the required information and the bank’s representative will contact you and guide you through the process.

If you qualify for the credit card, have a good credit report and proper documents, your application will be accepted and the bank will issue you a card.

Even if you know what you want, it is advisable that before you apply for the Citibank Rewards Credit Card, you compare it online first with other cards that are offered by the bank. There are third-party websites which will help you compare the cards easily. Comparing will help you make the best choice and you will be able to avail a credit card which has the most benefits. It will help you figure out the interest and the extra fees that you need to pay. It will also ensure that you choose a credit card which fits your budget and help you plan your finances properly.

American Express Credit Cards At A Glance

American Express Credit Cards (or Amex cards) will offer you the maximum payment flexibility to better manage your purchases: you can choose to pay the minimum due every month, pay off the complete balance of the card to avoid paying interest, or you can also convert your transactions into easy monthly installments and pay for them flexibly at reduced interest rates. The customers also benefit from the range of payment options offered by the bank and the best part is that, they can make payments directly from their bank account.

Main Feature

The main feature of all American Express cards is that that the company is dedicated to provide its customers with the highest standards of protection and control, a world of benefits and special offers at selected partners and access to exclusive loyalty programs. Thus, you will be able to enjoy exclusive benefits that are not offered to people who have credit cards from other banks. These cards will provide a number of important benefits in terms of flexibility, convenience, safety and control of your expenses.

Credit Limit

The credit cards come with a preset credit limit that can be revised by the bank based on the relationship that you build with them. If you make payments on time and use your card sensibly, the bank might even increase the limit and allow you to access more credit without any difficulty. In case you exceed the limit of your card, you will need to pay an over limit fee which is not very high. However, you can easily avoid exceeding the limit of your card by keeping a track of your transactions and making payments on time and at regular intervals.

Convert Purchases into EMIs

Amex cards can help you to better manage your expenses as they will allow you to convert your transactions into EMIs. You can set a flexible repayment plan that you can customize over time depending on your availability and needs by making a call to the Customer Service Team of the bank. You can choose the duration of time within which you would like to pay for the transaction. When you make the installment payments, more credit will be available to you. When you opt for this feature, you can save money as the interest charged for the purchases will be reduced.

Flexible payment options

When you opt for any of the credit cards offered by American Express, you will not have to pay off the credit card balance in full every month. In case you decide to pay off the balance in full within the payment due date, you can avoid paying interest for your purchases. However, if you do not have the required financial resources to pay off the balance in full, you can choose to any amount which is equal to or more than the minimum payment due for the card. Thus, you will enjoy the flexibility of making payments at your own convenience.

Loyalty Rewards

American Express will reward you for all your purchases with their credit card, giving you access to the loyalty program. You can get up to 1.5 percent of the value of the transaction as cash back for most of the transactions completed with the True Cash Back Card. Similarly, other cards from the bank will provide you with access to air miles that can be redeemed for air tickets, hotel bookings, travel deals, vouchers and a variety of other benefits. Some of the cards will help you to earn reward points at a faster rate and you can then redeem the points for all types of deals and offers.

Protection and control always within reach

With American Express Credit Cards, you will have the security you need at every opportunity, for all your day to day purchases and more importantly when you are on the go, thanks to the 24/7 Customer Service offered by the bank, 365 days a year. You will easily get answers to all your queries and questions and you can even contact their Customer Service Team online. Even when you are travelling abroad, you will be able to easily contact the bank and get your card blocked in case it is lost or stolen. You might even be able to get a replacement card on an emergency basis.

Online and Mobile Services

You can check your account at any time by accessing your logging in to the online banking portal of the bank and by accessing the mobile banking portal through iPhone and other smartphones. You can receive updates via SMS or email and you can also opt out of paper statements by opting for e-statements that will be sent to your email address.  Through the online and mobile platforms of the bank, you can not only view statements and access information about your credit card account, you can also make payments and access other features of your card.

Special Offers and Promotions

When you opt for the Credit Cards from American Express, you will reserve special offers and a variety of useful promotions from time to time. With the help of these offers and promotions, you can access a world of exclusive privileges from merchants that are part of the Amex network. You can find out about these promotions by visiting the website of the bank or other third party financial websites that offer information about Amex card promotions. The promotions are usually available for a limited period of time and are available for dining, travel, shopping, entertainment etc.

Eligibility Criteria

To apply for a credit card with American Express, you should meet the following criteria:

• You should be aged 21 years and above
• You should be a permanent resident or a citizen of the country where you want to apply for Amex cards
• You should have a minimum income of $30,000 per annum.
• You should be able to provide proof of income, identity proof, proof of address and other documents required by the bank.