Busting 3 common credit card myths 

Credit cards often get a bad rap because it’s a form of debt, and all debts are bad… right?  But we’d argue that credit products are a tool, and it’s how you use it that makes all the difference between “good” and “bad debt”. When used wisely, credit cards can be super convenient and a good way to build your credit score (which helps when you’re looking to take on bigger loans down the road for your dream home or vehicle). The key is responsible usage! 

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Here are three myths you might have heard and believed: 

Myth 1: Students or gig workers with low income cannot get a credit card

Let’s clear this up! There are certain regulatory requirements for getting a credit card but cards with a $500 limit are excluded from the same income requirements. There are a number of such credit cards on the market but most of them are aimed at students. (ICYMI: We’ve recently launched the GXS FlexiCard, a no-interest credit card with unlimited instant rewards for eligible transactions. And it’s not just for students!) 

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Myth 2: I don’t need discounts or air miles so there’s no point in getting a credit card 

Think again! Even if you’re not a frequent traveler or rewards junkie, credit cards can still be beneficial. Many cards, like the GXS FlexiCard, offer cashback on eligible purchases. Cashback is a straightforward perk that gives you instant gratification - typically at the end of the month, or instantly in the case of the GXS FlexiCard. 

Myth 3: Debt is bad  

Credit cards are a form of debt but used responsibly, they can be a form of “good” debt.

You’ve probably heard your parents, financial influencers such as the Weeblings, or even us say it: Spend within your limits and make your payments on time! This will also keep your credit score in good shape. Using a credit card responsibly can help you build your credit history, which is crucial for securing loans. For more on credit scores, check out this Betterzine article. 

We’ve hinted at why we love the GXS FlexiCard. Let us be transparent - 

• This is a $500 credit card. It’s designed this way to give customers who are new to credit or who struggle with access to credit products an option to credit while not being over-leveraged.
• The GXS FlexiCard is Singapore’s first and only credit card that charges flat fees in lieu of interest on outstanding balance. We are doing this because we understand that the market practice of charging daily interest on outstanding balances after the repayment due date for credit cards can result in hefty interest payments which further compounds issues with credit card debt. 
• We are actively encouraging good credit discipline. GXS FlexiCard customers will receive timely prompts and nudges via the GXS Bank app before their monthly repayment date. And yes, we do charge a late fee but it is lower than the typical late charge of S$100 in the market today.

Ready to go out and crush those credit card myths? 

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Third party website disclaimer: 

Link(s) in this article may bring you to third party website(s), owned and operated by an independent party over which GXS has no control ("3rd Party Website"). Any link you make to or from a 3rd Party Website will be at your own risk. Any use of a 3rd Party Website will be subject to and any information you provide will be governed by the terms of the 3rd Party Website, including those relating to confidentiality, data privacy and security.

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