Bank Credit Cards in South Africa

12th December 2016

Many people have not yet discovered the power of bank credit cards. It’s a shame as there are many benefits that little slice of plastic brings.

For one a credit card saves you the trouble and risk of carrying cash. You don’t have to stuff your wallet full of notes every time you need to go shopping. All you do is charge your expenses to your card.

bank credit cardsIf you pay your credit card bill on time every month, there are even more significant benefits to look forward to. You can earn air miles or get money back on certain products.

Factors to consider before applying for bank credit cards

Credit rating: They will ask you for your credit score when applying for bank credit cards. To be sure you’re on the safe side, it would be wise to check your rating before you submit your application. Thankfully there are online calculators on many websites that can help with this.

Ability to repay: While you will be able to shop hassle free even without money in your bank account, there will be a bill to pay at the end of the month. Will you be able to afford the repayments?

Other conditions

There are a few other conditions to look out for before signing up for a card and they differ from product to product and provider to provider. Here are the conditions and rewards for some of the more popular credit cards on offer today.

American Express Platinum

This product is for higher income earners; those who enjoy an annual salary of more than R300,000. You also need to have a credit rating that’s beyond reproach.

If you qualify, you can sign up and begin reaping some great reward. Among these are American Express reward points which never expire. They are given at a rate of one for every R5 spent. They will offer you travel insurance along with these rewards.

The downside with this product includes its comparatively high initiation and monthly fees, pegged at R165 and R62 respectively. There’s also the fact that many retail outlets don’t accept American Express cards.

Absa Transact

Offered by South Africa’s largest bank, this card is aimed at the lower middle class or those who just recently got employed. If you earn less than R2,000 and are looking to strengthen your credit rating, this is a good card to opt for.

You won’t get the rewards and perks a platinum or gold card will offer, but then you also won’t face high monthly charges.The monthly charges for this product are pegged at just R5.

Barclaycard Prime

If you are on the opposite end of the scale career-wise and wish to enjoy the finer things in life, you should consider the Barclaycard Prime.

If you can manage the exorbitant R42,000 levied every month, you will be in line with a string of great rewards.

One of the more important of these is an extended warranty on purchases such as electronics. It can give you extra peace of mind for 24 months after buying a product.

There are many other card types available in the market. Be sure to consider both sides of the coin before settling on any one.

All info was correct at time of publishing