Credit cards in South Africa

Credit cards in South Africa
Low-interest credit cards in SA

A credit card allows the holder of the card to purchase items, and access to a line of credit provided by the specific provider.

What is the difference between a debit card and a credit card?

A debit card is different to a credit card in that debit card takes the funds straight from your bank account. If you have no more money in your bank account you can no longer make debits from your account. A credit card acts as a revolving loan, in which you can make payments and purchases of a larger value that the cash you have available in your bank account.

Various credit card options available

A credit card thus gives you access to funds you would otherwise not of have had access to. Missing payments on your credit card can negatively impact your credit score and consumers are encouraged to stay loyal to the terms and conditions as set out by their credit provider.

Credit cards are available in many different options, and it is advisable that you apply for a credit card that suits your requirements and lifestyle. The interest rates, features and benefits can vary greatly and using a loan comparison site makes choosing the right credit card easy.

Credit cards are very handy to make purchases when you don’t have the money on hand to pay for something.

How do credit cards work?

A credit card allows you to borrow money from the credit card provider in the form of a line of credit instead of in the form of cash. The card issuer will look at your credit history to determine if you are eligible for a credit card together with other standard criteria for credit card applications. If you have a bad credit score some companies may still offer you a credit card but you may be charged a higher interest rate as you are seen as a higher risk client.  

If you are accepted and you are issued a credit card then your card will be given a limit. You can keep track of how much you spend on your credit card by checking the statements that you are sent monthly. The statement will keep track of your spending and let you know the details on how much your minimum payment must be.

Make your credit card work for you

If you use your credit card correctly you will be able to borrow money and repay very little to no interest on the principle amount. Use a credit card to purchase something expensive as most credit cards come with an interest free period this period allows interest free purchases for up to 56 days. If a credit card is used correctly, it may assist you financially and help you stay ahead.

Buy on credit without paying interest

If you are able to pay off your credit card within the interest-free period then you will get your purchases on credit without having to pay additional in interest charges. This is a feature that no loan type can offer a consumer. All it takes is a bit of credit card savvy, and you could make a credit card work for you.

Tips on making your credit card work for you

  • Never miss a credit card payment as you will incur penalty fees and charges
  • Make sure that you always pay at least the minimum payment amount
  • If you can afford to pay more than the minimum amount required, do so as often as possible
  • Ensure you use your credit card in line with a budget, lowering your chances of overspending
  • Credit cards are especially handy when travelling abroad

Benefits of a credit card

A credit card is a safe method to perform transactions and make purchases. This is one of the main benefits of credit cards. A credit card protection fee is charged each month to protect you from fraudulent activity.

It helps you make purchases that you could otherwise not afford.

Credit cards offer comprehensive consumer protection.

Consumers can often enjoy the extra added benefits unlocked by being a credit card holder, which includes but is not limited to airport lounges, discounts and more.

Why could my application be rejected?

If you apply for a credit card and you are rejected it could be because of the following reasons:

  • Your application could be rejected if you have little or no credit history or don’t have any accounts as yet.
  • Your application can be rejected if you have made late payments or default on payments completely.
  • If you have any court judgments against your name.
  • If you have applied for multiple cards at the same time.

A credit card is a line of credit that can be helpful in many ways. Applying for a credit card is easy and you can apply for one online, unlocking all its benefits within minutes.

Credit providers offering Credit Cards in SA