ABSA Credit Card re-payments?

[SonnyK]

So I received a credit card today as part of my new cheque account package. The problem is I've never used a credit card and neither do I understand how re-payments work.

The guy at the information desk told me the first 57 days is interest free but I must make a 3% of balance value payment between the 25th and 1st of the next month. A portion will go down on capital and another portion for interest. I don't understand this.

Any of you have an ABSA gold card and using it? I thought they deduct the installments automatically from your cheque account monthly?

 

[noswal]

Strangely you gain a credit record by using it and creating debt.


If you have a debit order set up then it will be debited from your account, you can leave it in a draw and never use it, add money to it to give you a credit balance or use it like all good slaves.

 

[R13...]

They can deduct the minimum each month if you instruct them to.

 

[Renier]

They can also deduct the full amount every month automatically.

This is preferable.

 

[supersunbird]

This is what your credit card should look like under internet banking (Virgin Money uses ABSA backend)..

You will have a due by date and full amount payable to settle fully and minimum amount if you just want to pay the minimum.

A date not shown is the "billing date"(correct name?). Mine is around the 11th each month. So if I buy something the 9th it will reflect under the full amount payable (so around 26 days credit before due date) for the next month aroudn the 5th. If I buy something the 13th it will have around 55 days before it has to be paid.

 

[ShaunyCT]

Always try to pay the full amount outstanding when you get your salary. That way you avoid bank charges. Never draw from your creditcard because then you pay interest and atm fees.
If you pay only minimum amount outstanding, you going to have problems. You will find you pay high Finance (interest) charges which will always increase.
You get 3 types of debitorders to pay your creditcard: minimum, fixed and full amount. Go full amount.
If you do need cash, transfer to your cheque account via atm, cellphone or internet banking. This will be free. Then draw the money at the shops, its free if you have those Value Bundles.

 

[SonnyK]

Ok here's a test I've done on ABSA's credit card with supposedly 57 days "interest free"

Transactions:
8/11 - R8400 withdrawal
9/11 - R850 withdrawal
15/11 - R2000 withdrawal

Balancel: -R11250

26/11 - R11350 deposit

Balance: R100

26/11 - R95.35 INTEREST :wtf:

This is not what they've promised or am I missing something here? Shall see me this morning

 

[supersunbird]

Ok here's a test I've done on ABSA's credit card with supposedly 57 days "interest free"

Transactions:
8/11 - R8400 withdrawal
9/11 - R850 withdrawal
15/11 - R2000 withdrawal

Balancel: -R11250

26/11 - R11350 deposit

Balance: R100

26/11 - R95.35 INTEREST :wtf:

This is not what they've promised or am I missing something here? Shall see me this morning

Cash withdrawals are charged interest immediately, swipes aren't. Almost everyone with CC's knows this.

 

[SonnyK]

Cash withdrawals are charged interest immediately, swipes aren't. Almost everyone with CC's knows this.

Sorry I shouldn't have used the term "withdrawal" with all of them. One transaction was an inter-account transfer and the other a beneficiary payment. Btw I'm glad I'm not part of the "everyone with CC" crowd since this is my very first credit card and I'm still trying to find out how the charges work. The bank is useless in explaining

 

[Venomous]

Cash withdrawals are charged interest immediately, swipes aren't. Almost everyone with CC's knows this.

^this

use it at the shops, but do not withdraw cash.

 

[Venomous]

Sorry I shouldn't have used the term "withdrawal". These transactions were inter-account transfers and beneficiary payments. Btw I'm glad I'm not part of the "everyone with CC" crowd since this is my very first credit card and I'm still trying to find out how the charges work. The bank is useless in explaining

EFTs are often treated the same as cash withdrawals.

 

[noswal]

and they will charge you if you deposit cash to pay your monthly bill

 

[shooter_za]

Cash withdrawals are charged interest immediately, swipes aren't. Almost everyone with CC's knows this.

Are there any other types of transactions that attract interest immediately (except ATM, transfers)?

 

[supersunbird]

Sorry I shouldn't have used the term "withdrawal" with all of them. One transaction was an inter-account transfer and the other a beneficiary payment. Btw I'm glad I'm not part of the "everyone with CC" crowd since this is my very first credit card and I'm still trying to find out how the charges work. The bank is useless in explaining

Also treated as cash. You should have asked us to explain, we even give you screenshots and such

 

[supersunbird]

Are there any other types of transactions that attract interest immediately (except ATM, transfers)?

Anything but swiping basically.

 

[Venomous]

Anything but swiping basically.

does not normally include petrol, oil and toll fees, unless that changed

 

[supersunbird]

Petrol thing should have changed according to the SARB, but yes, there have been issues with some of the banks being incompetent. Don't know about toll fees.

 

[senyetse]

Yep, I only use my credit card for store/online purchasing. Don't EFT or draw money from it, rather use a cheque account for that. End of the month I pay it in full via EFT from my cheque account.

 

[senyetse]

does not normally include petrol, oil and toll fees, unless that changed

You can now pay for petrol with CC at most service stations. With ABSA you get rewards if you swipe CC at Sasol.

 

[SonnyK]

You can now pay for petrol with CC at most service stations. With ABSA you get rewards if you swipe CC at Sasol.

What kind of rewards? Bank charges?