In Singapore, credit card eligibility generally depends on the age and income of the applicant. If you are between 21 and 55, your annual income must be at least $30,000 to be eligible to apply. The annual income requirement is $15,000 for those above 55 years old. Qualifying sources of income include non-employment income, such as rent, interest, or dividends. Until recently, banks did not consider CPF LIFE payouts as income. Most seniors in Singapore, therefore, despite having sufficient savings in their CPF Retirement Account, were ineligible for an unsecured credit card.
Last week, DBS and OCBC became the first banks to formally recognise CPF LIFE payouts as income proof for credit card applications. UOB will follow suit soon. The Monetary Authority of Singapore (MAS) has confirmed that CPF LIFE payouts are a valid source of income when assessing applications for new unsecured loan facilities, including credit cards.
To meet the $15,000 annual income requirement, seniors’ CPF LIFE payout must be at least $1,250 a month. For those turning 65 this year to achieve this payout amount, they must have set aside about $161,000 as their CPF Full Retirement Sum back in 2015.
Read Also: Here’s What Your CPF Full Retirement Sum Might Look Like When You’re 55
This means that those aged 65 and above, with sufficient savings in their CPF Retirement Account and who are receiving regular CPF LIFE payouts, can now qualify for unsecured credit cards and enjoy the following benefits.
#1 Access To Newly Launched Credit Cards
In the past, seniors missed out on the benefits of newly launched credit cards. Ironically, this meant losing out on credit card benefits that often complement the senior citizens’ discounts they enjoy.
For example, the DBS yuu card, launched in 2022, gives up to 18% cash rebates for spending at Giant and Cold Storage. This complements the discounts senior citizens enjoy on Tuesdays and Wednesdays, respectively. Most seniors in the past would only be able to enjoy up to 9% cash rebates with the PAssion POSB Debit Card.
#2 Earn Cashback, Air Miles, Or Rewards Points
Credit cards in Singapore tend to fall into one of three reward categories: cashback rebates, air miles, or rewards points (which can then be converted to rebates and miles). These rewards can sometimes evolve quite dramatically, as banks compete with one another to attract customers.
In the past, seniors who did not apply for a particular credit card while they still met the income eligibility requirements would then miss out on the evolved benefits.
For example, the POSB Everyday Card now enjoys 10% cash rebates on in-store spend in Malaysian Ringgit, in addition to the existing 10% cash rebates on dining and other benefits.
Fortunately for Malaysia-bound seniors who have not applied for the POSB Everyday Card yet, they will now be eligible should they have sufficient savings in their CPF Retirement Account.
Read Also: Shopping Across the Causeway: 15 Things You Can And Cannot Buy
#3 Complement Your High Interest Savings Account
Since its launch in 2014, the DBS Multiplier Account has evolved over the years to become more and more inclusive. From including CPF LIFE payouts as income to allowing PayLah! retail spend to qualify, everyone from students to retirees are now able to benefit in some way from the higher interest rates offered by DBS Multiplier.
That said, while PayLah! is great for allowing secure, cashless payments both at home and overseas, this is also possible using a credit card. Furthermore, credit card holders enjoy many more benefits with the right card – in addition to the cashback, air miles and rewards mentioned above, many credit cards enjoy 1-for-1 dining offers or discounts.
#4 Protection From Fraudulent Online Transactions
As seniors become savvier with online shopping and other transactions, it’s even more timely that they can now apply for and use credit cards.
This is because credit cards offer significantly more protection online than other cashless alternatives like debit cards or mobile wallets. Since credit cards are not linked to a bank account, suspicious transactions on your credit card have no impact on your hard-earned money if reported in time.
In contrast, fraudulent transactions on debit cards can often lead to the amount initially being deducted or frozen in your account, pending an investigation. Until the investigation is concluded, you won’t have access to that amount in your bank account.
With cards like the OCBC FRANK Credit Card, seniors can enjoy 8% in cashback on all local online purchases.
#5 Credit Card Sign Up Bonuses
Admittedly, this is a smaller one-time benefit of applying for credit cards. For example, from now till 31 July 2025, customers who sign up for the DBS Live Fresh Card, the DBS yuu Card or the POSB Everyday Card can enjoy $300 cashback if they spend a minimum of $800 within the first 60 days of card approval.
Just like most credit card sign up promotions, only those with no DBS/POSB credit card, and who have not cancelled a DBS/POSB credit card in the past 12 months are eligible.
