Even with a bad credit score, there is a credit card out there for everyone. In fact, there are some credit cards that are specifically constructed for bad credit holders. It provides an advantage over finances, and can even boost credit scores in the long run. South Africa is home to a wide array of credit card companies that grant cards to those with low credit, and allowing customers to achieve a better quality of life.
1. Virgin Money Credit Card
Those with low incomes can benefit from this credit card. There is a lack of balance transfer fees and annual fees. However, there are charges that must be paid for this card. Such as, if making the application by 2nd December 2019, there is a 6.9%p.a. on balance transfers for as long as 36 months. The fees will be 3.3% if making international transactions. As soon as the initial period has ended, the Balance Transfer Rate will regress to the Cash Advance Rate, which is 20.99%. The eligible income required is a minimum of the R5,000.[1]
2. ABSA Student Credit Card
This South African credit card also has no annual fee. Registered full-time student that holds a valid South African ID and earn at least R200 are eligible. The ABSA allows student credit card holders to swipe for purchases, at a cost of 0$. Money withdrawal from a credit card using an ABSA ATM will induce a charge of R3.95 plus 1.15%, and R9.95 and 1.15% using an ATM from a different bank. An interest payment of 0.2% will be paid if the balance is positive. However, the minimum monthly repayment is 3% for those with an outstanding balance. The interest rate fee is 18% with a credit card limit of R200.[2]
3. Capitec Global One Credit
If one’s credit is managed well, Capitec Global is the place to go. Earn 4.75% each year when the balance is positive. There is a 55 day period with no interest provided by the bank, with up to R250,000 for the credit limit. Depending on rating and availability, credit card options can be personalized, just pay a tailored interest rate of 10% a year. Cashless payments are available worldwide at card machines, telephone and mail orders, online, and with Mastercard®. There is no charge for conversion of currency for overseas card purchases. R100 is the initiation fee, with a monthly fee of R35, and 10%-25% variable interest rate. [3]
4. FNB Gold Credit Card
There are a wide range of benefits granted by FNB Gold Credit Card, including AA emergency roadside assistance, automatic debt protections, and comprehensive global travel insurance with a Petro card. Also earn R84,000 – R299,999 a year and up to 15% return in eBucks on a FNB Connect contract or prepaid purchases, domestic Uber rides and Uber Eats, and online shopping with a Gold card. Customized interest rates are provided along with up to 55 days with no interest. There transfers of balances and options for budget facilities also. An annual income of R84,000 – R299,999 is required to eligible.[4]
5. Standard Bank Gold Credit
An excellent option for those with a lower income is the Standard Bank Gold Credit Card. There is a minimum requirement of R5000 monthly income. Keep in mind that the credit limit is R250,000 and there is also a monthly fee of R54. Similarly to the options above, there is also the option to personalize interest rates. SBGC even grants reduced prices on up to 35% automatic basic travel insurance with Emirates, and also on the Credit Card Protection Plan. There are many lifestyle assets, such as 1GB of AlwaysOn Wi-Fi for a one-time R19 fee (and 11GB without charge!), 4 movie tickets for Ster-kinekor, lifestyle and food on the UCount Rewards points and MasterCard with every use of the credit card. [5]
Sources
[1]https://businesstech.co.za/news/banking/292584/south-african-credit-cards-compared-2/
[2]http://www.wheretobank.co.za/students/student-credit-cards
[3]https://www.capitecbank.co.za/global-one/credit/credit-card/
[4]https://www.fnb.co.za/credit-card/gold-credit-card.html
[5]https://www.standardbank.co.za/southafrica/personal/products-and-services/bank-with-us/credit-cards/our-cards/gold-credit-card
