The key to managing your debt is to ensure that you are not paying vast amounts of interest. In terms of the National Credit Act, the maximum initiation fee on a credit card is R150, plus 10% of the agreement in excess of R1000, but limited to R1140 including VAT.
As you shop for a credit card, make sure that you find out which banking institution has the highest credit card interest. This will out you in a good bargaining position when you start comparing quotes.
The credit card market in South Africa is competitive, giving consumers access to a wide variety options.
Most credit cards offer up to 55 days’ interest free credit on purchased goods.
As a credit card holder, it’s important that you ensure that you pay back the full amount every month if you can.
Each South African bank offers unique interest rates:
Standard Bank offers a personalised interest rate on credit cards.
FNB offers personalised interest rates with up to 55 days’ interest free credit.
Absa bank offers a credit card interest rate that varies, depending on your individual credit profile.
Various credit card interest rate offers from Absa:
Transact Credit: 0.20%
Private Bank: 0.75%
African Bank offers a 2% per annum credit card interest rate on its Silver credit card. The Gold credit card from the bank is offered at 3% per annum.
Nedbank offers a credit card interest rate of between 0.25% and 0.75% for its credit card range.
As you compare credit cards in order to find the best offers, check to see which bank has the highest credit card interest rate.
Other factors to consider when comparing credit cards:
- Compare packages thoroughly
- Consider how you use your card
- Don’t limit your options
- Use reputable online comparison sites and visit consumer forums to look at complaints and compliments about various credit card providers
- You’ll want a card that has many attractive and consistent benefits. You’ll also want to make sure that you can afford the credit card of your choice