In this article, we're going over some of the top 5 credit card options in South Africa and benefits that are unique to each.
We trust this post will bring you tremendous value, so if it does, please take the time to share it with a friend, co-worker or family member that could use some more information on credit cards. We'll remind you again later :-)
At Fincheck, we're passionate about helping South Africans make better financial decisions! This is why we created a platform that offers free, objective financial comparisons to South African consumers looking for financial products. On the Fincheck platform, you'll also be able to find other free comparisons on some of the top credit card solutions in South Africa.
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Before we cover some of the top 5, let's have a quick recap on why and when you would need a credit card.
Why and when you would need a credit card?
Let's not ignore the fact that credit cards are not cheap and are high risk for creating debt. Bank charges and interest on the credit is a big disadvantage. Yet, so many people have and use credit cards on a daily basis. Why is that?
- Convenience - as simple as that.
- Emergencies - for many people, it is an emergency source of cash flow.
- International purchases - sometimes, international payment gateways only accept credit cards.
- Renting a vehicle - many rental companies require a large amount of collateral funding to be secured before the renting procedure can be finalised. Not many people have large amounts of money, just lying around. A credit card makes renting a vehicle
possible, without actually paying anything from the account that is already empty. The money is reserved inside the account.
- Rewards - credit cards were designed to entice spending. Most banks encourage this by rewarding users abundantly on certain purchases. This can be used very wisely to add some freebies to your purse but should be done responsibly
Some of the top 5 credit card solutions
Standard Bank Blue
The Standard Bank Blue credit card requires a minimum yearly salary of R42,000. It has a limit of R100,000, with the option of increasing it after 6 months of responsible usage, and a management fee of R49 per month.
Benefits: The Standard Bank Blue credit card offers Easy qualification requirements and provides many free benefits, including R0 transaction fees.
The Virgin Money credit card offers free lost card insurance, travel insurance, and credit interest of 2.5% per month.
Benefits: Virgin Money credit card offerso monthly or annual service fees, low-interest rates and R0 transaction fees. The credit card can be couriered to you at no charge.
African Bank Gold
The African Bank Gold credit card has easy qualification requirements and a once-off initiation fee of R75, with a monthly management fee of R35.
Benefits: The African Bank Gold credit cardncludes free transactions, ATM withdrawals and worldwide usage. You will also receive free Credit Life Insurance.
African Bank Silver
The African Bank Silver credit card has easy qualification requirements and a once-off initiation fee of R110, with a monthly management fee of R57.
Benefits: The African Bank Silver credit cardincludes free ATM withdrawals, free SMS notifications and the ability to draw money worldwide. You also have free till point transactions in South Africa and free Credit Life Insurance.
Although we've listed the RCS credit card here, it is more of a combination of a loan and a credit card that *offers credit at participating stores.
Benefit: The RCS credit card give access to 20,000 Stores and no minimum salary required.
What do you typically need to apply for a credit card?
- ID book
- A payslip / proof of income that usually requires your latest 3 pay slips and / or latest bank statement with 3 deposits
- Recent proof of home address
Before we let you off the hook, here are some tips on using a credit card wisely.
- Pay your bill on time every month
- Avoid paying interest on your purchases by paying the agreed amount each month in full. Missing a payment is not an option. If you are afraid you might forget, set a reminder on your phone. Skipping payments can result in late payment fees and an
increase in interest.
- Check your credit card balance online once a week
- This can help you stay on top of spending. Do not be caught by surprise by a nasty bill at the end of the month. If you see that you are spending more than you can afford to pay back at the end of the month, stop using the card immediately until the
outstanding amount is paid off.
- Use the card for needs, not wants
- You need to be strict with your purchases. Having a credit card is a big responsibility. Consider only using your card only for the necessities.
We trust this post has indeed brought you value, please take the time to share it with a friend, co-worker or family member that could use some more information on credit cards :-)
P.S. As we mentioned above, coming soon will be a tool to help you build a better financial future as well. Our advice is to stay tuned! So, SIGN UP to be notified when the MyFincheck Financial Tool becomes available to help you build the financial future YOU want. Features that will help you reach your financial goals include:
- Check your credit score
- Key budget metrics
- Spending behaviour
- Tax tools
- Track your investments AND loans or credit