Some holders have debts that exceed their annual income.
Starting June 2015, the Monetary Authority of Singapore will roll out stricter rules against delinquent credit card borrowers.
Financial institutions will not be allowed to grant additional unsecured credit to a borrower who is 60 days or more past due on any credit card or unsecured credit facility.
In addition, other FIs will not be able to increase credit limits or grant new unsecured facilities to such an individual.
FIs will also be prohibited from granting further unsecured credit to a borrower whose outstanding unsecured debt aggregated across all FIs exceeds his annual income for three consecutive months or more.
The MAS estimates that about 3% of credit card holders have accumulated unsecured debts that exceed their annual incomes.
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