Apply Now for a Credit card in South Africa

31st July 2018

Credit cards are a sound investment. And you can apply now for a credit card in South Africa right here online.

Also known as short-term unsecured credit products, they have received unjustified criticism because of people who misuse them. There are a few things you can do to avoid credit card pitfalls.

Stick to a budget and avoid overspending. Keep track of your purchases by taking a good look at your monthly statement and pay the amount that the lender asks for every month.

If You Apply Now for a Credit Card, Use it Responsibly

Using a credit card in a controlled, disciplined way, can get you out of an unforeseen financial dilemma. There are different types of credit cards, each one offering different features and benefits –

  • Affinity cards – both Visa and Mastercard
  • Reward cards – they reward loyalty with cash back or rebates
  • Student credit cards – have lower interest rates
  • Business credit cards
  • Co-branded credit cards – a marketing strategy by airline or retail chain brands

 

Credit cards work in a similar way to overdrafts. You’re able to borrow money up to a set limit and still have an interest-free period to repay your debt. You pay interest on the outstanding balance if you don’t pay within the interest-free period.

Apply Now for a Credit Card

With a credit card, you’ll get to understand the different ways people pay. Non-revolvers are individuals who pay their credit card balances in full each month. Revolvers tend to pay the minimum payment and unfortunately end up paying interest charges.

A Credit Card needs to be Handled Responsibly

When you apply for a credit card, you’re entering a legally binding contract between you and the credit card lender. You become responsible for any debt you incur. If you find that it has become difficult to make repayments, rather contact your provider to discuss your options.

When you look into applying for a credit card, you’ll discover that there are quite a few different lenders:

  • ABSA
  • Standard Bank
  • WesBank
  • Virgin Money
  • Debt Lab
  • FNB
  • Just Money
  • Woolworths
  • Diamond Bank
  • African Bank

 

Compare these different credit cards and look for the one that comes with the lowest interest rate, and reasonable fees.

Store Cards

Woolworths is one of the major department store chains in the country. If you’re interested in the Woolworths credit card you’ll have a choice of black, silver, gold and platinum cards. Store cards are more expensive than credit cards offered by the bank.

The cards are provided in partnership with Visa. This means you can use them at all ATMs and retail outlets. There is automatic travel insurance, lost card protection service, balance protection and a budget facility.

You also get up to 8 secondary cards at no extra charge. To get the silver card, you’ll need to be earning a monthly income of R2 000 or higher. Each card has its unique benefits.

Although it is a good idea to have at least one credit card, you have to bear in mind that credit cards traditionally have the highest interest rates.

Sometimes lenders offer you a card before you’ve even asked for one, if so, read all the terms and conditions of the agreement. This agreement is regulated by the Consumer Credit Act 1974. When approved, you’ll receive a  copy of the credit agreement.

If you apply now and get approval from the lender to have a credit card, you may be a little bit disappointed at the credit limit allocation. However, pay the right amount on time every month and the bank will raise the limit on your card.

There are Benefits to Owning a Credit Card

 Correctly handled, a credit card can offer many advantages. Just one or two of these benefits include –

  • Rewards – most credit cards offer you rewards. Yes, these rewards are a ploy to get people to use their cards more, but when used responsibly you can save a lot of money.
  • Some of these rewards are airline miles as well as a generous sign-up bonus just for opening an account and meeting a minimum spending requirement.
  • Convenience – when you’re travelling and find yourself in a strange town, you don’t have to waste time hunting for an ATM, use your card to shop or pay for a stopover. Use the cards locally and abroad.
  • Instant purchases – a credit card allows you to buy something like a fridge or stove and pay it off in monthly instalments.

 

If your refrigerator breaks down, you have to find the money to buy a new one. With no access to ready cash, you may have to survive a while without a fridge.

More Benefits

  • Save money on purchases – excellent deals are available on the Internet, but most times the only way to pay for these online purchases is with a credit card.
  • Emergency money is instantly available – you’ve always got access to money in case of an emergency. Very few of us in South Africa dare to carry around significant amounts of cash with us. With a well-managed credit card, you’re got a ‘full wallet’ whenever you need it.
  • You always know what you spend – a credit card gives you a detailed summary of your spending each month. With cash, you lose track of what you’re spending, but your credit card records give you an idea of what you can or can’t spend next month.

 

To apply now for a credit card, you’ll need to be employed and be at least 18 years of age. It’s not to say when you apply for a credit card that you will get one. Your application will be based on some factors, one of which will be your credit worthiness.

Most credit card providers will give you an idea of what their eligibility criteria are, after reading this, you’ll get a sense of whether you stand a chance or not.

They CAN offer a Carefree Lifestyle – When Handled Responsibly

Don’t let people who have abused their credit cards tell you that having a credit card is a waste of time. Credit cards can provide you with a tremendous amount of convenience, provided you use yours responsibly.

Apply now for a credit card. Enjoy the benefits and the convenience

All info was correct at time of publishing