Insuring in the right Credit Card

Credit cards, if used correctly, are financial tools that provide margins for short-term loans. Due to extensive amount of options available, it can become tricky when choosing one. In principle, the most important factors are:

-Purchase Interest Rate
-Card Fee
-Positive Interest Earned

With regard to interest rates, most of the credit cards come with a rate of about 17%. With FNB however, the interest rate is customized and calculated based on individual criteria.

Positive Interest earned differs from one institution to the next. For example, Nedbank does not offer interest on positive credit balances at all, and with Virgin one earns 2.5% per year with a positive credit balance.
Benefits and special offers connected to your credit card can add real value to your financial life, but should only affect your decision if they will be taken advantage of. The various institutions offer Benefits built on their brand strengths, like the DiscoveryCard provides the most value to their Discovery health members, including rewards.

The best way to make a decision is to consider all three factors. Look at benefits, fees and interest rates and decide what it is that you will need from it and know how you intend to use it.

Also, keep a look out for the Capitec Credit Card still to come later this year

Credit Card

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