By The Ledger desk · Last verified 28 September 2026

Pay your credit card bill in full by the due date and you pay no interest. Pay anything less and interest, at around 27.8 per cent a year at the big local banks, is charged daily on each purchase from the day you made it, not from the due date. Miss even the minimum payment and a late fee of about S$100 is added, and some banks raise your interest rate by another 3 percentage points until you’re back on track.

Quick facts

• Pay in full by the due date: no interest.
• Pay less: interest of about 27.8% a year, from each transaction date.
• Minimum payment: usually 3% of the balance or S$50, whichever is higher.
• Miss the minimum: a late fee of about S$100.
• Some banks then add 3 percentage points to your rate.
• Cash advances cost a fee of 8% or S$15, plus interest.

How does card interest work?

Most cards give you an interest-free period of around 23 to 25 days after the statement date. That period applies only if you pay the full statement balance by the due date and carry no balance from the month before. If you don’t, interest is charged daily on each transaction, from the date you made it until you pay in full, with a minimum charge of S$2.50.

What’s the minimum payment?

At DBS and OCBC, it’s 3 per cent of the statement balance or S$50, whichever is higher, plus any overdue amount and anything over your credit limit. Paying the minimum avoids the late fee, but not the interest on the rest.

What happens if I miss the minimum?

Charge	DBS	OCBC
Interest rate	27.8% a year	27.78% a year
Late payment fee	S$100 (if the balance is over S$200)	S$100
After a missed minimum	Rate rises by 3 points, to 30.8%	Rate on the balance and new purchases goes up
Cash advance fee	8% or S$15, whichever is higher	8% or S$15, whichever is higher

At DBS, the higher rate stays until you’ve made the minimum payment on time again. Other banks have similar rules; check your card’s fee schedule.

Which part of my payment clears which debt?

Banks apply payments to the balances charging the highest interest first, then fees, then the principal.

The WahLiao Verdict

Set up GIRO for the full statement amount, not the minimum. At nearly 28 per cent a year, card debt is one of the most expensive ways to borrow in Singapore. If you can’t clear it, talk to the bank early rather than paying S$100 a month in late fees.

Questions people ask

I paid most of the bill. Why was I charged interest on all of it?

Because the interest-free period only applies when you pay in full. Otherwise interest runs on each transaction from the day you made it.

Does a late payment affect my credit score?

Yes. Late and missed payments count against your credit record.

Can the late fee be waived?

Some banks will consider a one-off waiver if you ask; it’s at their discretion.

Is a cash advance a good idea?

It’s expensive: a fee of 8 per cent or S$15, and interest from the day you withdraw.

Sources: DBS, card fees and charges and finance charge; OCBC, fees and charges for credit cards; SingSaver on industry rates and late fees. The Ledger explains; it does not advise.

Read next: Your Credit Score in Singapore · Back to The Ledger

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