Credit Card for Credit Score

[_teboho27_]

Good day,

im trying to find the best bank in order to get a credit card to build my credit score.

which bank should I go for and is it advisable to take a credit card at this moment, mind you I earn around R10k-R20k?

thank you

 

[Tman543]

If your aim is to build credit score and not focus on interest rates offered. Just get the cheapest one and pay it all off every month. Cheapest used to be virgin money (Discontinued), Not sure what the best in the market is right now.

South African credit cards compared

A credit card is a great way to borrow money against a line of credit, with a wide range of cards available in South Africa catering for your specific need.

businesstech.co.za

 

[supersunbird]

If your aim is to build credit score and not focus on interest rates offered. Just get the cheapest one and pay it all off every month. Cheapest used to be virgin money (Discontinued), Not sure what the best in the market is right now.

South African credit cards compared

A credit card is a great way to borrow money against a line of credit, with a wide range of cards available in South Africa catering for your specific need.

businesstech.co.za

Capitec and FNB Aspire seems to be R40pm.

 

[Other Pineapple Smurf]

Good day,

im trying to find the best bank in order to get a credit card to build my credit score.

which bank should I go for and is it advisable to take a credit card at this moment, mind you I earn around R10k-R20k?

thank you

Credit scoring is very complicated, even though we use a very simple system in South Africa (I worked on an international credit report aggregation system recently).

The best is to first get yourself a free account to monitor your credit score. I've been using the Sanlam one as it's simple, the others you need to pay a small annual fee which is still worth it if you have a lot of dangling closed accounts.

Sanlam Credit Solutions

Browse a range of solutions to suit all your financial needs.

www.sanlamcreditsolutions.co.za

They explain how it works:

What goes into calculating your score

Total Debt​

A record of the total debt you’ve ever had, how much debt you have now, and an indication of the different types of debt you have.

Payment History​

A historical record of whether you have made payments on time and in full.

Age of Credit History​

Accounts that are kept open for a long time and are used responsibly show lenders how you use credit.

Recent Credit Applications​

A historical record of your recent credit applications.


They give you a nice score chart




And then some insights into your different credit types

 

[Tman543]

Credit scoring is very complicated, even though we use a very simple system in South Africa (I worked on an international credit report aggregation system recently).

The best is to first get yourself a free account to monitor your credit score. I've been using the Sanlam one as it's simple, the others you need to pay a small annual fee which is still worth it if you have a lot of dangling closed accounts.

Sanlam Credit Solutions

Browse a range of solutions to suit all your financial needs.

www.sanlamcreditsolutions.co.za

I feel like this deserves some credit (excuse me). Very well presented, a bit over the top for OPs question but definitely useful info.