7 Things to Consider Before Getting a Credit Card 

They say 7 is the lucky number in all situations. So, let's deep dive into the world of credit cards. How can they be beneficial for you? Or are they just a method of charging you extra money. We all have urges to buy something. Or enjoy an experience. But are unfortunately low on cash. In times, like these credit cards can be your best friends.

However, paying premiums can be a headache for many as well. Hence, we share all the details with you on how you can make the most out of your credit card without the need to pay significant interest.

Personalized Card for your Personalized Needs:

Banks in South Africa issue a variety of credit cards for the customers. They understand that every consumer has different needs. Also, the buying power and income of their users are added. Therefore, cards are divided into various categories to support the consumer. 

Minimum income from R7500 to a maximum of R500,000 is covered under this project. This allows consumers to choose their lifestyle. The process of applying is easy after one can prove their source of income. Special discounts for students are also available at most banks.

Monthly Service Charges:

After you successfully qualify for a particular card. Some dues have to be paid every month. Starting with the monthly service charges. The banks in South Africa take care of all your needs at any moment. They provide you with the most optimal services. To top it off, every customer has to pay a small number of monthly charges.

The amount may vary from R58 to R99. It depends on the type of card you are opting for. Gold cards or the staring categories have the least amount of charges. Whereas Platinum or high-end cards have more monthly service charges. It is all to ensure that you receive the best of services from banks. Monthly service charges are a must, to keep everything in a working situation, 

Rewards for You:

The world has become a global village. Nowhere is far anymore. Keeping this in mind, banks in South Africa are giving away many rewards for credit cardholders. It is one of the main reasons consumers opt for a credit card. Firstly, the convenience of a credit card is unmatchable.

For example, you are in a store to buy something. However, you are running low on cash. But you know you can pay back in a short amount of time. Thus, use your credit card for buying a good or service. And, pay back whenever you get the money. Make sure that you pay it as soon as possible. 

One more factor that makes credit cards a favourite of many is worldwide acceptance. Visa or Master Card technology is made familiar in the whole of the universe. Now you can shop at any outlet in any country, just by tapping your card on the machine. This allows you to be safe from handling cash and exchanging currencies.

Maintaining Credit Score:

A credit score is an essential tool that can be used for your benefit in all walks of life. Owning a credit card can be very useful. Or can be bad for your credit score. The credit card itself has no relation to your credit score. For instance, if you make some purchases from a credit card. 

Then pay off the money in the allowed time. It can give you benefits like Lower interest rates and a good credit score. One more tip is never to use all your credit limits. Just use 75% of your limit and pay back in time. This can quickly boost your credit score.

In case you need a loan for a car. Or are you looking for a mortgage for a house? Your over-the-top credit score can be beneficial for you.

Special Interest Rates:

Banks in South Africa, catering to the needs of every consumer. Just as they have a different rate of monthly charges for their customers. The interest rates are also personalized according to your needs. They are subject to your monthly income and payback schedule. 

The rates are from 5% to 7%; they may vary from bank to bank. You can also apply for days to pay back your amount. In this way, you can take benefits from a credit card without paying any interest on your spending.

Say No To Frauds:

Credit cards now come equipped with EMV Chips ( Euro Pay MasterCard and Visa). This saves the customers from scams or fraud, even if your credit card data is leaked or in the wrong hands. They prevent any unwanted transaction from happening—the chip stores all the data for once-off marketing.

The chip rolls out new data for every transaction, which is only applicable at the time of one transaction. All the data can be used for a one-off. They are making credit cards super secure to carry. Moreover, different codes can be used to verify every transaction that you make.

In case of loss or theft, contact the bank immediately. They can block off the card and save you from any hazard.

The Debate:

One of the most important things to keep in mind is—the difference between a debit card and a credit card. Many people confuse it as being the same cards. However, they have nothing in common. A debit card only allows you to pay for a service or a good. Suppose you have money in your bank account. You can not spend a penny more than you have stored in the bank.

On the other hand, a credit card allows you to pay even if you have no money. After you successfully qualify for a credit card. Every customer is given a spending limit for their needs, which they have to pay back after some time with interest applied.