Secured credit cards in Singapore: How they work

What are secured credit cards?

Although limited, secured credit cards in Singapore are designed for businesses (or individuals) with not-so-good credit scores. They are typically provided to fulfil a company's requirement for a credit card with a huge credit line despite having a poor credit score. This would require you to provide collateral, typically a fixed deposit of at least SGD $10,000.

One of the main benefits of these cards is that they offer you the flexibility to either make regular payments or pay later with interest. If you are unable to repay a credit amount, banks use collateral to offset the debt, making this a secured option.

A secured credit card in Singapore typically requires the cardholder to provide collateral (in the form of specified deposits) in order to secure the credit line. Under the Banking (Credit Card and Charge Card) Regulations 2013, card issuers may only offer secured credit cards if the customer pledges a deposit of at least SGD $10,000 at the time of application.

When exactly can a secured credit card help you? Imagine you've just founded your company and purchased a new office, but don't have enough funds to cover the office setup and initial inventory. At the same time, you realise that you have a poor credit score. With a secured credit card, you can access funds using a fixed deposit as collateral while gradually rebuilding your credit history.

Secured vs unsecured credit cards

The main difference between a secured and unsecured credit card is the deposit: a secured card requires one as collateral, while an unsecured card is approved based on your income and credit history alone.

How do secured credit cards work

‍A secured credit card works by using your fixed deposit as collateral, which the bank uses to set your credit limit and secure against non-payment.

• You pledge a fixed deposit, typically a minimum of SGD $10,000, with your bank
• The bank sets your credit limit based on this deposit, usually 80% to 100% of the amount
• You use the card for purchases the same way as any regular credit card
• You repay your statement balance monthly, with interest charged only on unpaid balances
• Your repayment activity is reported monthly to the Credit Bureau Singapore (CBS)
• If you default, the bank can use your deposit to cover the outstanding balance

What are the features of secured credit cards

Here are some features of a secured credit card you should know before applying:

Credit limit

It is the maximum amount that can be spent on a secured credit card. In most cases, it is 80% to 100% of the collateral.

Cash transaction charges

It is the interest charged on all cash transactions, such as withdrawals from ATMs.

Interest charges

Interest is charged on balances not paid by the statement due date, just like with a regular credit card. Even so, the interest rate may be lower than that of a regular or unsecured credit card.

Credit tracking

Your purchases and repayment history are reported monthly to the Credit Bureau Singapore (CBS), the central credit reporting agency in Singapore. Consistent, on-time repayment strengthens your credit profile with CBS over time.

Annual fee

Most secured credit cards carry an annual fee, though this is often waived for the first year or waived entirely depending on the bank and card. It's worth factoring into your decision, especially if the card's other benefits don't offset the cost.

What are the pros and cons of using a secured credit card

Before applying for a Singapore secured credit card, it's helpful to understand its pros and cons. Let's take a look.

Pros of a Singapore secured credit card

• Financial security: This card is available to anyone, even those with poor credit histories. Thus, it provides your business with financial security.
• Build credit history: Every company deserves a second chance. Making timely payments with this card will help you build your credit score. In Singapore, your repayment behaviour is officially recorded by the Credit Bureau Singapore (CBS), the central agency licensed under the Banking Act to maintain credit records. By making timely payments, you strengthen your profile in the CBS database, which banks and financial institutions check before extending larger credit facilities.
• Time to settle debt: Until the bill is due, you have some time to source and repay the amount interest-free.
• Track expenses: Using a card for all your business expenses helps you keep track of them in one place.

Here's a side note: Are you having trouble managing your company's spending? With Aspire, you can now manage your company's expenses effectively and with real-time visibility. View Aspire's spend management services now.

Cons of a Singapore secured credit card

• Penalty: Defaulted credit card payments will be subject to late payment fees. The accumulation of such interest can result in a large sum over time.
• Annual card fee: There is an annual fee associated with the physical card provided. So, you may need to ensure that the benefits of the card justify its cost.
• Limited credit: Although it cannot be considered a negative aspect, it does limit your expenditures.
• Collateral: Generally, you won't have to worry about your deposit. However, if you're unable to repay your dues, the bank may liquidate your fixed deposit to cover the outstanding balance. If the debt plus accrued interest exceeds the collateral, you could still owe money.

When should you go for a secured card

A secured card makes sense when your business needs a credit line but doesn't yet qualify for an unsecured card, and you have the cash to spare as collateral. While secured business credit cards (https://aspireapp.com/blog/best-corporate-cards-singapore-business) may not offer the same rewards as unsecured cards, they can be a practical way to build or rebuild your credit history. Once your business grows and your credit score improves, you may be able to qualify for a credit card without a security deposit.

So, when does it make sense to go for a secured business credit card:

• Your business has a poor or limited credit history, and you're looking to rebuild your credit score
• You can afford to lock up cash as a security deposit without straining your business's cash flow
• Your business regularly uses credit cards for online and in-person purchases

How to apply for a secured credit card

Step 1: Ensure you meet the credit card eligibility criteria in Singapore

Here are the credit card application requirements of Singapore that you need to check to ensure your application for a Singapore secured credit card will be approved:

• Age criteria: Above the age of 21
• Security deposit criteria: Minimum S$10,000 to be deposited as collateral in a fixed deposit of the same bank
• Foreigners are eligible to apply if they hold a valid work pass, including an Employment Pass, S Pass, Personalised Employment Pass, Long Term Visit Pass with LOC, Tech.Pass, or International Organisation Pass

Step 2: Apply online or visit a branch

Most banks now let you apply digitally through their mobile banking app or online form, and some also support opening the fixed deposit online. If your bank requires an in-branch step for the collateral setup, you can visit the nearest branch to complete it.

Either way, you'll need to activate the fixed deposit to park your collateral before your application can proceed.

Step 3: Await approval

Once your application is approved, the card you have applied for will be delivered to the registered address.

What are the available secured credit card options in Singapore

Looking for the best Singapore secured credit card for your business? Well, not all banks have the same credit card eligibility criteria in Singapore, and they do not always offer the same benefits.

Before comparing them, it helps to know what you're optimising for. If you travel frequently, a miles card like DBS Altitude or UOB PRVI Miles earns you more per dollar spent overseas. If you'd rather avoid fees altogether while still building credit, HSBC Revolution, CIMB Visa Signature, and POSB Everyday all waive their annual fee entirely or for the first year.

Please note that card terms, fees, and eligibility criteria were last verified in 31 August 2026 and are subject to change. Always verify with the issuing bank before applying.

Note: Please refer to our resources section below to find links to each bank's official fee schedules.

Is there an alternative to a secured credit card in Singapore

If a fixed deposit isn't something your business can lock away right now, you still have options. Debit cards, prepaid cards, multi-currency cards, and personal loans each work differently, and the right one depends on whether you need to build credit, move money internationally, or simply keep spending under control. Here's how the alternatives compare.

Debit card

Best if you want to spend only what you already have, with no application process. A debit card withdraws money directly from your checking account and can be used for direct payments or cash withdrawals at an ATM.

Benefits:

• You can get one linked to your checking bank account in Singapore , making it easier to obtain.
• It may have lower interest rates.

Drawbacks:

• You will be charged for the amount spent immediately, and there will be no additional payback period.
• There may be additional fees involved.
• Your checking account may also be subject to penalty fees if they are overdrawn.

Prepaid card

Suitable if you want spending control without a credit check or a bank account. Unlike bank debit cards, prepaid cards don't require a bank account. Once you load money onto the card, you can make purchases or withdrawals up to the amount of your deposit.

Benefits:

• No credit check required.
• Easy top-up options and can be used for purchases and transportation.

Drawbacks:

• If linked to your bank account, it may lead to unintentional purchases.
• It will not help you build your credit score.
• All purchases are charged immediately to the card, so there are no repayment periods.

Multi-currency card

Ideal if your business regularly pays overseas vendors or holds funds in more than one currency. A multi-currency card lets you switch seamlessly between fiat currencies and digital assets (https://aspireapp.com/blog/virtual-company-cards), loading multiple currencies onto one card to make international purchases easier.

Benefits:

• Since it is a prepaid card, it is a convenient option for newly established business owners in Singapore without local credit histories.
• Widely accepted all around the world.

Drawbacks:

• Not all cards allow the withdrawal of the balance amount or the option to transfer to a bank account.

Personal loan

Preferable option if you need a lump sum upfront and can't tie up cash as collateral. A personal loan is an unsecured loan from a bank or financial institution, with a set repayment method and period.

Benefits:

• Generally have lower interest rates and would be a better option if you need more time to repay.
• You get a lump sum amount upfront.
• You don't need to provide collateral.

Drawbacks:

• It may require a good credit history.

If none of these quite fit, the Aspire Corporate Card gives you the spending control of a secured card without locking up a deposit. It's a multi-currency debit card built for businesses, and you'll earn 1% cashback on digital marketing and SaaS spend along the way. Still wondering which card to choose? Read our article: How to choose the right corporate card for your business.

How long does it take to build credit with a secured card

For most businesses, the shift shows up gradually, not overnight. A missed payment or two early on won't sink you, but the pattern from month three onward is what banks actually look at.

By the third or fourth month of on-time payments, your activity begins showing up more meaningfully in your Credit Bureau Singapore (CBS) profile. Banks typically want to see at least six months of responsible usage, low balances relative to your limit, and no missed payments before they'll consider you for an unsecured facility.

If your business maintains that track record, some banks will proactively offer to convert your secured card into an unsecured one, releasing your fixed deposit in the process. Others may require you to apply separately once you feel ready. Either way, it's worth checking in with your bank around the six- to twelve-month mark to ask where you stand.