Credit Card Accounts

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Credit Card Accounts

CREDIT CARDS – STANDARD

Last updated 03 November 2016

Please note that the prime rate was adjusted in late July 2015 and our rates will be adjusted as soon as the banks make their new rates available.

Institution African Bank
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American Express
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Clicks
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Discovery
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FNB
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Go Banking
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kulula.com
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Nedbank
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Standard Bank
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Standard Bank
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Virgin Money
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Wesbank
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Woolworths Financial Services
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Card Name African Bank Silver Credit Card Blue Credit Card Clicks ClubCard Credit Card Silver DiscoveryCard (no longer offered)
Classic credit card Silver Credit Card kulula.com Credit Card Classic Credit Card Blue Credit Card
bluebean Credit Card (Silver) Virgin Money Credit Card Classic credit card Silver Credit Card
Age Criteria (years) Over 18 Over 21 Over 21 Over 21 Over 21 Over 21 Over 21 Over 21 Over 21
Over 18 Over 18 Over 21 Over 18
Earning Criteria (monthly) No limit R 3,000.00 R 3,000.00 R 5,000.00 R3000 to R8 333 R 3,000.00 Between R5 000 and R11 666 R 3,000.00 R 3,000.00 R 4,000.00 R 5,000.00 R 5,000.00 R2 000 to R9 999
Annual Fee R 820..80 R820,80. R 315.00 R375,00 – R230,00
electronic pricing option)
R276.00 R180.00 (R15.00 per month)
R396.00- R408.00
R 288.00 p/a R24.00p/m
R340.00
R 300.00 R 0.00 R23.00 R264.00
Lost card protection annual fee R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00 R 0.00
Rewards Schemes available No Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes
Penalty fees Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Interest Rates – Debit 19.50% 19.90% Neg 21% Personalised rate
23.75 -21% Neg 19,90% 18,90% & 20,15%
Between 18.50% & 21.10%
19% Between 16.00% & 19.00% 24.00%
Interest Rates – Credit 0.00% Tiered – up to 2% 0.00% Tiered-up to 1.25% Between 16% -19%
0.25% 0.00% 0,25% 0.00% 0.00% 3.00% 0.25% 0.00%
Minimum Monthly payment 6.50% 10% 5% Neg
5% 7.5% 5% 5% 5.00% 5.00% 7.50% 5% 5%
Budget Facilities available No Yes Yes Yes Yes Yes Yes Yes Payment upto 25 years
Yes Yes No Yes Yes

Note:

Absa Bank – the following will no longer be offered to new clients, effective 1 January 2014:

Silver and Electronic Credit Card

For information on credit cards and how they work, see Wikipedia

For information on the National Credit Act (NCA), please see the National Credit Regulator’s (NCR) website

See the comparison with Australian credit cards.

About Credit card accounts

As of June 2007, the National Credit Act (NCA) has replaced the Usury Act which has changed the way banks structure their lending products. Existing accounts pricing (fees and interest rates pre-NCA) are likely to stay the same until expiration or further notice from the bank, but new accounts pricing (from June 2007) will be based on your credit history and risk profile.

Banks will charge an initiation fee on a credit card (in terms of the NCA, the maximum initiation fee on a credit card is R150, plus 10% of the agreement in excess of R1 000, but limited to R1 140 including VAT). In terms of the Act, a further R57 a month can be charged as an administration fee on credit cards.

The credit card market in South Africa is very competitive, ranging from the banks offerings to airlines, retailers and cellphone providers, however the non-bank providers are backed by one of the banks.

Annual card fees remain largely based on previous fees, although some banks have converted those fees into monthly fees.

The maximum interest rate you can be charged on an outstanding balance is the current repo rate multiplied by 2.2, plus 10 percentage points. If the repo rate is 9.5%, the maximum you can be charged is 30.9% (9.5×2.2+10).

Most cards offer 55 days interest free credit on purchased goods in addition, they reduce the danger associated with carrying cash. In order to benefit most effectively from these advantages, there are a few practices worth considering: Always ensure that you pay back the full amount every month if you can. This is imperative especially in view of the fact that if you bought something for R4000 on the first day of a new period, but only repaid R3950 on the due date, you would pay interest on the entire R4000 and not only on the outstanding R50. Taking advantage of the minimum repayment can turn out to be expensive – the actual amount of the debt that you repay is usually less than you may have thought it was.

Loyalty programs are extremely attractive, but hesitate before you make them the primary reason to choose one card over another, or to spend on them in order to build up points for an overseas holiday. In deciding which card to use, rates and costs are a key criterion. Reward schemes should be considered an added extra. Each institution does offer different products and services to its clients, and so by making comparisons, you will be able to receive the best package for you as an individual. So, beware of the fancy frills and make a wise decision.

Glossary

Annual fee – fee payable to the bank for the use of the card, paid once a year

Budget facility – The budget facility is a secondary facility on a credit card account. This facility may be used for larger purchases and is repayable over a period that suits you (eg 6 to 60 months). The full transaction amount is debited to the budget account and the monthly instalment is debited to the straight/revolving facility on the statement date (not on the payment due date).

Credit interest rate – interest paid to you if you have credit in your account

Debit interest rate – interest you pay the bank if you are in debt to the bank

Lost card protection – you are protected against any fraudulent activity on your lost card once you have reported it lost to the bank

Minimum monthly payment – percentage amount (anywhere from 3% to 15%) of the total amount due which is payable to the bank each month

Penalty fees – fees payable for any wrongdoing on the account (ie late payment, over-the-limit etc)

Rewards/loyalty scheme – ‘benefit’ of using the card, allows you to earn points, miles, cashback (which ever is applicable) depending on the amount of spend on the account

Rewards scheme annual fee – fee payable to the bank to make use of their loyalty/rewards scheme