Credit Card advice

[Reiku_San]

Hi Guys, Not sure if this is the right spot to ask this, but here go's.

I have 2 accounts (CNA and GAME) that I am currently paying off. The interest is pretty high. A friend suggested I apply for a credit card and use that to pay off the 2 accounts and then close them. Positives of that would be one bill at the end of the month and possibly lower interest rate, not to mention benefits like e-bucks etc.

What do you guys think? Is this a good idea?

 

[AnibugZA]

Depends on the amount you still owe, and how long you think it will take you to pay it off.

What is the current interest rate on the individual accounts? What are the outstanding balances and what is your repayment amount each month for each account?

Lower interest rates are always a better idea. Some cards, like the Virgin Money Card, have no monthly fees and will even give you 55-days interest free before they start charging you. But if you can provide the figures we can do the actual math and recommend a card to go for.

The other thing to consider is whether or not you'll be able to get a credit card with a high enough limit to pay off both your accounts in one go. I assume you have been paying regularly and that has given you a decent amount of credit-worthiness?

 

[Scooby_Doo]

First step is to compare the interest rates on a CC and the accounts...

 

[Reiku_San]

Yup, I have never missed a payment in my life. Game I know is around 22%, not too sure on CNA, will have to check up. I owe roughly R10 000 with both cards combined. My problem is that it is all too easy to buy nappies/ baby stuff and all that on both cards, so I think with one credit card I could have a better degree of control. I am not a stupid spender and have self control.

 

[Reiku_San]

I have heard good things about Virgin and FNB, and was told to stay away from Blue Bean, but I suppose that's personal opinions.

 

[ISP cash cow]

My problem is that it is all too easy to buy nappies/ baby stuff and all that on both cards, so I think with one credit card I could have a better degree of control. I am not a stupid spender and have self control.

just remember that it will be a lot easier to go buy nappies and baby stuff on a credit card that is accepted everywhere,compared to a card that is only store based.

It can work if the interest rate for the credit card is lower but also you will need to have self discipline to ensure you do pay what you need to pay (And even more if you can) as well as not going on a spending spree with the card.

 

[Alton Turner Blackwood]

Don't get a credit card...I think its the biggest financial mistake I've made

 

[AnibugZA]

Virgin Money - rate is Repo-linked, range is 13.5% - 17.5%.
No annual fees, no charge to swipe, access to Virgin Money Online is free.

http://www.virginmoneycard.co.za/virginmoneycard/The-Deal/What-are-the-interest-rates

Do this for all the major card providers. Some will have better interest rates, but higher monthly fees.

Getting a VM credit card was one of the best things we ever did. We do basically everything on our card - buy all our groceries and other things as well as online purchases. We also have access to emergency funds when needed and have never had to pay a cent of interest. If we could close our other bank accounts and only live on the credit card and my Capitec account, life would be great.

 

[Reiku_San]

Don't get a credit card...I think its the biggest financial mistake I've made

Please elaborate? Was it because spending went unchecked?

 

[Tim_vb]

Pulling funds from CC accounts does not earn you rewards, only paying for good/services does.

 

[Alton Turner Blackwood]

Please elaborate? Was it because spending went unchecked?

Mostly, yes. The other issue is you tell yourself, "I'm just going to buy these with my CC and pay it off again at the end of the month"m pfft, that never happened with me

In an effort to clear my CC debt I've requested the bank to reduce my credit limit by 2 grand a month. In other words if I don't pay 2k even without using the CC for the entire month, I'm immediately in arrears! I'm currently on an 8k limit.

Today's the 31, so make that 6k

 

[F1 Fan]

If the amounts you owe is small, you should just pay it off as is. If it's big amount, then look into having a credit card.

I don't think credit cards are bad. There's nothing wrong with it if you use it properly. I myself use my CC all month, and on the 30th I do an EFT into the credit card to settle the total amount spent for that month (each month my balance is 0). So, if you are disciplined, it shouldn't be a problem. The fact that you have GAME and CNA debt is not promising though.

 

[AnibugZA]

Anything you can buy at CNA you can get at Pep or online for much much cheaper.

Try Guzzle.co.za before ever buying anything. They have all the specials pages from all the major retailers loaded and categorised. Really really need a new hairdryer? Check guzzle to find out who has it on special and who has it at the best price.

/thread derailment over.

Nappies are seriously expensive everywhere though.. :erm:

 

[I.am.Sam]

CNA can be interest free but the rate is like 30% i think if bought on interest

and yeah i also got a credit card for the credit rating
but i have been using it alot like yingyang says ..buy now il pay month end

 

[Other Pineapple Smurf]

Yup, I have never missed a payment in my life. Game I know is around 22%, not too sure on CNA, will have to check up. I owe roughly R10 000 with both cards combined. My problem is that it is all too easy to buy nappies/ baby stuff and all that on both cards, so I think with one credit card I could have a better degree of control. I am not a stupid spender and have self control.

Good on being honest to yourself.

I don't have to preach or insult your intelligence as its an emotional issue and we don't always know and want to understand why you have made the debt. I've been there and have a lot of empathy for you.

As for your original question, quiet often when applying for a credit card you can ask the bank to assist you with transferring your existing accounts to the credit card. You will be saving a lot by doing this as both those cards get loaded with admin fees, never mine premium interest rates.

Try and get a credit card limit for just what you need as its temping to dip into it at times. Pay what you can afford but try and continue to pay the current amount, even see if you cannot get your salary paid into it.

All the best.

 

[Other Pineapple Smurf]

I have heard good things about Virgin and FNB, and was told to stay away from Blue Bean, but I suppose that's personal opinions.

Blue Bean sucks, killing my card after a decade with them this year.

Was with Virgin for 2 years and 5 star service, closed it when I started to focus on killing my debt.

I've currently got a Nedbank card but even with with a positive balance they still charge an admin fee, closing it in two months time.

Moving over to FNB.

 

[Reiku_San]

Good on being honest to yourself.

I don't have to preach or insult your intelligence as its an emotional issue and we don't always know and want to understand why you have made the debt. I've been there and have a lot of empathy for you.

As for your original question, quiet often when applying for a credit card you can ask the bank to assist you with transferring your existing accounts to the credit card. You will be saving a lot by doing this as both those cards get loaded with admin fees, never mine premium interest rates.

Try and get a credit card limit for just what you need as its temping to dip into it at times. Pay what you can afford but try and continue to pay the current amount, even see if you cannot get your salary paid into it.

All the best.

Yup I want a tightly controlled limit (The point is to pay everything off as fast as possible) . I created the game account to get a washing machine, fridge and oven when I moved into my own flat.

 

[AstroTurf]

Virgin Money - rate is Repo-linked, range is 13.5% - 17.5%.
No annual fees, no charge to swipe, access to Virgin Money Online is free.

http://www.virginmoneycard.co.za/virginmoneycard/The-Deal/What-are-the-interest-rates

Do this for all the major card providers. Some will have better interest rates, but higher monthly fees.

Getting a VM credit card was one of the best things we ever did. We do basically everything on our card - buy all our groceries and other things as well as online purchases. We also have access to emergency funds when needed and have never had to pay a cent of interest. If we could close our other bank accounts and only live on the credit card and my Capitec account, life would be great.

I am getting one of these to get my wife out of **** and to pay my game card off.
Thanks

 

[AstroTurf]

Yup I want a tightly controlled limit (The point is to pay everything off as fast as possible) . I created the game account to get a washing machine, fridge and oven when I moved into my own flat.

I got mine because I got a gift voucher on a cellphone contract and was short for what I wanted to buy and they changed to RCS from normal loans they had.
Stupidest move ever.

 

[Gtx Gaming]

Fnb offers 9.9 % interest rate(first 9 months) if you apply for gold credit card and put that 10k on the cc, min terms is 24 months to pay of the R10k.

my gold cc with fnb is 18.4 %