GXS Bank has launched a new credit card today – the GXS FlexiCard (Mastercard).
No foreign currency fees
Like the game-changing Trust Cashback card, the GXS FlexiCard comes with no foreign currency fees or markups.
It’s a long-awaited trend we’re seeing with new digital banks, as traditional banks have been raking in hefty FX fees of over 3% for far too long.
Related: Best Foreign Currency Miles/Cashback Credit Cards
No income requirement
To qualify for this credit card, you only need to be a Singapore Citizen or Permanent Resident between the ages of 21 and 55. There is no minimum income requirement.
Sounds promising but brace yourself – it’s all downhill from here.
$500 credit limit
The GXS FlexiCard comes with only a $500 credit limit. I mean, it makes sense, given there’s no minimum income requirement.
A credit card like this can be useful to those who do not currently have an income (e.g. students, NSFs etc.).
Extend your repayment period with no interest
Cardholders can roll their balance forward to the following month with no interest. However, it comes with a $5 flexi fee, and the minimum payment (at least $15) has to be settled.
A $50 late fee will be charged if the minimum payment is not met.
The card’s page also mentioned “Say goodbye to sky-high credit card interest”, which suggests it’s targeted towards Singapore residents who may struggle with spending control and credit card debt.
Instant (random) cashback
Like the GXS Debit card, FlexiCard holders can receive instant cashback on transactions of $10 or more. However, this cashback amount is random, and is claimed to go “up to $3”.
GXS is not being transparent with the chances of receiving a $3 cashback, so, each qualifying transaction feels like a lucky draw. My guess is that most cardholders will end up with rewards under $1 per transaction.
$54.50 annual fee
This card comes with a $54.50 annual fee (incl. GST), that’s automatically waived for the first year.
For me, this is the biggest drawback. Imagine launching a credit card aiming towards those without jobs, and slapping an annual fee on it.
Sure, future annual fees may be waiveable, but with underwhelming benefits, I wouldn’t even recommend this card, even if it does not come with an annual fee!
I know it’s only Day 1, but this feels like the final nail in the coffin for the GXS FlexiCard.
Bottom line
With no income requirement and a $500 credit limit, the card seems to be targeted towards students and NSFs.
However, looking at the other “perks”, it appears to be targetting cash-strapped/overspending residents of Singapore, encouraging an endless cycle of controlled debt.
This is the kind of naughty credit card that your grandparents warned you about. Jobless, student or NSF, you’d probably want to stay away from this one; and if your financial literacy is shaky, steer even further away.
If you are not currently earning an income, I suggest sticking to debit cards that are not tied to your main bank account, like YouTrip, Amaze or even GXS’s own Debit card.
