You will not incur any interest charges if you pay your credit card balance in full and on time.
Every month, you will receive a credit card statement where you will find a list of all your purchases during that credit cycle. On the statement, you will find your total outstanding balance as well as the minimum amount due for that month. If you pay the full amount, you will not incur interest charges.
However, if you only pay the minimum amount:
- You will be charged with interest fees daily for the outstanding amount
- Any interest that you fail to settle by the next payment schedule will also incur interest in the next statement.
- Interest will also be charged on any new purchases until you pay off your outstanding balance in full.
The average interest rate of credit cards in Singapore is around 25%