By MoneyBees
Daily interest on an overdrawn balance or credit line at your bank's rate, the cost to clear it with the annual fee, and how it compares with a personal loan.
Daily, on the amount you owe. UOB states it as the daily balance x the annual rate / 365. DBS charges from the date you withdraw until you repay in full.
DBS Cashline and OCBC EasiCredit charge 22.9% a year if you earn S$30,000 or more. UOB CashPlus charges 20.9% and Citi Ready Credit 22.95%. Lower earners pay more at DBS and UOB.
Yes, at most banks. DBS and UOB charge at least S$10 of interest in a month you use the line, and OCBC and Citi at least S$5.
An annual fee of S$120 to S$150, usually waived in the first year, and a late fee of S$120 to S$150. Missed payments also move you to a higher default rate.
When you will carry the balance for months. A credit line charges around 21% to 23% a year, while personal loans quote much lower flat rates. Compare the loan's EIR and fees with the line's cost.
For short gaps you will repay within days or weeks. You pay interest only on what you use, for the days you use it.
Yes. It is unsecured credit, so it counts towards MAS's income-based limits and the cap of 12 times monthly income on interest-bearing unsecured debt.
It depends on the bank. DBS asks for 2.5% or S$50, OCBC 3% or S$50, UOB 2% or S$30, and Citi 1% plus charges or S$50.
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