Should I get a credit card?

backstreetboy said:
Yes it comes with 55 days interest free, travel insurance, lost card and fraud protection etc. No brainer just get a cheaper one. VMCC is free with just a R160 delivery charge and Capitec is only R35 p/m.
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I'd recommend the Virgin Money one for a student as they often don't spend enough to justify the ebucks fee.

As others have said, use the thing properly, don't spend more than you earn, just use the interest free days to earn extra cash.

Do big purchases (car services, plane tickets etc) one day 1 of your billing cycle to get the full 55 days.

A credit history is important. When I first started working Cell C denied me a R99 pm contract because I had no history. I spent R1 000 on a prepaid internet option, but it was my most embarrassing financial moment.

I applied for my credit card that same week.
 
Thanks everyone for the great advice and information! Having looked at the various pros and cons, and doing some research on the web, I will definitely apply for a credit card soon! I will go with FNB's cheapest credit card option (Gold), which is just R48 pm. I haven't opened a clothing account yet (don't really plan to) but my phone is getting really old now, so will also consider getting a new phone on contract.
 
Try buying an international plane ticket without a credit card. Impossible even offering cash at the agency will not do.
Try renting a car without one. Impossible.
Try buying stuff online is difficult to impossible on some sites.
They do not accept debit cards.
 
Seylan said:
Thanks everyone for the great advice and information! Having looked at the various pros and cons, and doing some research on the web, I will definitely apply for a credit card soon! I will go with FNB's cheapest credit card option (Gold), which is just R48 pm. I haven't opened a clothing account yet (don't really plan to) but my phone is getting really old now, so will also consider getting a new phone on contract.
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Best option! I wouldn't touch a clothing account just do the FNB gold you will be good!
 
Just remember the two things you can't do with the card:

- Account transfers/payments from the card.
- Cash withdrawals.

These always accrue interest from day one.

The auto-payment setting you want is "full amount". Some people pay down the balance to "zero" the card, but all that does is forfeit some of the free interest. It's normal for your balance on any given day to be about 50% more than you're actually paying each month.
 
Dolby said:
I know not as much as many others, but I'm getting R10,000 a year back in eBucks by doing everything i possibly can on the card.
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R10000 you would not have gotten if not using it. So moral of the story use responsibly and make it work for you. DONT WORK FOR IT!
 
Seylan said:
Sorry if this seems like a weird question, but I really don't know if I should get one.
When I started university 4 years ago, I had a student account (FNB). I got my first job earlier this year (May), and switched to a cheque account. So far I have only been using my debit card for everything. I don't see a need for me to have a credit card at all. But, I heard some people say that it is important to build a good credit rating, which is necessary if I needed to take out a loan or finance a car (which I don't see myself needing to do in the foreseeable future). So far the only benefit I can see from getting a credit card is using it for ebucks, but the value of that is another story. I will be paying around an extra R100 per month to have the credit card. So should I just avoid the trouble?
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Been without a credit card for nearly two years, regret ever getting one.

I only realise now how much it truely cost me regardless of all the "free" benefits I'm now missing out on. Nobody will ever convince me to get one again. Oh, and I've had others on this forum get angry with me when I started a thread about how I went credit card free.

And people who think they are spending the banks money while earning interest on theirs are really are just sticking their head in the sand. No such thing as a free lunch especially when it comes to banks. Just remember banks are patient, very patient and they are just waiting for you to make that one mistake to fall into that debt trap.
 
GoB said:
I have been harassed by my bank to switch to a cheque account and their logic has never made sense - always higher fees for what I'm doing.

So I'm probably the 1 in 1000 who has stuck to a savings account for 20 years.

Just saying... calculate for yourself, don't listen to the 'credit record' nonsense.
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I hope one day to join you and push that to 2 in 1000. I'm downgrading my cheuque account next year and will start looking at moving away from FNB to Capitec (SA Homeloans) for my bond.

Two things I've learn't in life when it comes to this topic:
1 - the bank always wins
2 - you will always loose the fight on this forum when it comes to promoting living without debt (credit cards / cheque accounts / etc)
 
cbrunsdonza said:
I hope one day to join you and push that to 2 in 1000. I'm downgrading my cheuque account next year and will start looking at moving away from FNB to Capitec (SA Homeloans) for my bond.

Two things I've learn't in life when it comes to this topic:
1 - the bank always wins
2 - you will always loose the fight on this forum when it comes to promoting living without debt (credit cards / cheque accounts / etc)
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I hear you and don't get me wrong I totally understand what you are saying. But. If I need to spend money on groceries petrol accounts etc and I am able to get 1k back a month but I need to spend this on a credit card whixh I will settle every month because I have that money and only buy on that credit card what I have the cash for. Is getting an additional R1k back a problem? Debt can go horribly wrong as it sounds like it did. But if you manage everything properly you are in the best position if you make some money back.

So in short there are two sides.with the approach above please indicate why this is a problem.

Living in credit is a totally different story buying beyond your means etc. I am totally against that the o ly true debt I have is my home loan which I plan on paying in less than half the time.
 
Just wondering
If a person doesn't have a credit rating, and opens a clothing store account solely to get a positive credit score...
Any experience with this, how much will it benefit?
 
Antelope said:
Just wondering
If a person doesn't have a credit rating, and opens a clothing store account solely to get a positive credit score...
Any experience with this, how much will it benefit?
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Can't get a positive rating for not using it it needs to move. Wouldn't touch a clothing account with a 10 foot pole...
 
Tomtomtom said:
For me the benefit is the security and convenience of having an internationally-accepted payment method that involves spending the banks' money, and so is protected by the chargeback system. The liquidity is also very helpful. It allows you to put your income to work (earning interest) immediately and not have to worry about inter-account transfers more than once a month.

If you get the cheapest card possible, and never owe interest, then it should cost roughly nothing. e.g. at R48/month, if you spend ~R7k, and have your R7k payment waiting in a 7%-interest-bearing account the whole cycle, then the fee is balanced.

Basically if you're prepared to "secure" for yourself the unsecured credit and learn to use the card "properly", I think you'll be glad you have it.
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Im trying to understand the benefits but it is just not clicking. My limit is R3700. I transfer R5500 every month on payday. My wife has the full R5500 (3700 limit + 1800)to spend on groceries/fuel/electricity etc. I use the CC because I get more Ucount points.

So basically what am I missing, as the only benefit I get is to "fix" my variable cost- "my wife".
 
rh1 said:
Im trying to understand the benefits but it is just not clicking. My limit is R3700. I transfer R5500 every month on payday. My wife has the full R5500 (3700 limit + 1800)to spend on groceries/fuel/electricity etc. I use the CC because I get more Ucount points.

So basically what am I missing, as the only benefit I get is to "fix" my variable cost- "my wife".
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You transfer what?

What he is saying is the following. Let's say you spend 5k on groceries and everything else. Rather put your own 5k into saving for the month then at the end of the month settle the 5k credit card. You essentially earn interest in the 5k and then you rinse repeat...
 
Snyper564 said:
You transfer what?

What he is saying is the following. Let's say you spend 5k on groceries and everything else. Rather put your own 5k into saving for the month then at the end of the month settle the 5k credit card. You essentially earn interest in the 5k and then you rinse repeat...
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Interest on 5K a month is basically nothing in a normal savings account. I won't bother.
 
I'd say get it. It's invaluable, if not necessary , when traveling. Usually there's additional travel/flight insurance for flighs purchased with a cc. Online shopping and international services almost always wants some sort of credit card.

Nothing stops you from lowering the limit and topping it up with additional money. I have my CC primarily for the access and additional payment options it provides.

Also Visa/Mastercard is generally really good at getting your money back and refunding money when you didn't get what you paid for etc. There's a level of buyer's protection that i don't normally see with savings/cheque accounts.
 
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