What Is Credit Card?
A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder’s accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the other agreed charges). The card issuer (usually a bank or credit union) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance. There are two credit card groups: consumer credit cards and business credit cards. Most cards are plastic, but some are metal cards (stainless steel, gold, palladium, titanium), and a few gemstone-encrusted metal cards.
What Are Credit Cards Used For?
The primary purpose of a credit card is to allow users to make purchases without having to pay the full amount up front. Instead, the user can borrow credit from a financial institution and pay it back at the end of the month or overtime on EMI but with an interest.
How Does Credit Cards Work
A credit card is a plastic card that you can use to pay for goods or services or to get money from a cash machine. Credit cards are issued by banks, finance companies, and some stores, charities and clubs. You can use the card wherever it is accepted and shops and suppliers usually display a sign telling you which cards they take.
What Is The Best Credit Card In South Africa?
In the ever-evolving world of personal finance, finding the best credit card can be a daunting task. With so many options available, it’s essential to choose a card that offers the most value, tailored to your individual needs and preferences. In this comprehensive review, we reveal the top 19 best credit cards in South Africa discussing their fees, benefits, and other essential features.
- Standard Bank Gold Credit Card
The Standard Bank Gold Credit Card offers a competitive interest rate and a range of value-added services. The card comes with an initiation fee of R165 and a monthly fee of R40. It features rewards points for every R1 spent, complimentary travel insurance, and access to exclusive discounts on dining and entertainment. - ABSA Gold Credit Card
With the ABSA Gold Credit Card, cardholders enjoy a low monthly fee of R23 and a competitive interest rate. This card offers rewards points for every R1 spent, cashback rewards on certain purchases, and access to exclusive discounts and deals. Additionally, ABSA provides cardholders with free basic travel insurance and cellphone insurance. - FNB Premier Credit Card
The FNB Premier Credit Card boasts a monthly fee of R85 and offers a competitive interest rate. Cardholders earn eBucks for every R1 spent, which can be redeemed at various retailers or used for fuel purchases. This card also includes free comprehensive global travel insurance and access to exclusive lifestyle benefits, such as discounted flights and car rentals. - Nedbank Platinum Credit Card
Nedbank’s Platinum Credit Card has a monthly fee of R58 and offers a competitive interest rate. Cardholders earn Greenbacks rewards points for every R1 spent, which can be redeemed for cash, vouchers, or charitable donations. Additionally, this card includes complimentary travel insurance, access to airport lounges, and exclusive discounts on dining and entertainment. - Capitec Global One Credit Card
The Capitec Global One Credit Card is known for its simplicity and affordability. With a monthly fee of R40 and a competitive interest rate, this card is an excellent option for budget-conscious consumers. Capitec offers straightforward pricing with no hidden fees, and cardholders can enjoy free basic travel insurance and access to Mastercard Priceless Cities offers. - Discovery Bank Gold Credit Card
The Discovery Bank Gold Credit Card offers a unique rewards system that encourages healthy living. With a monthly fee of R60 and a competitive interest rate, cardholders can earn Discovery Miles for every R1 spent, which can be redeemed for cash, travel bookings, or partner vouchers. This card also offers free comprehensive travel insurance, access to exclusive discounts, and cashback on gym memberships and healthy food purchases. - Virgin Money Credit Card
The Virgin Money Credit Card offers no annual or monthly fees, making it an attractive option for cost-conscious consumers. Cardholders earn rewards points for every R1 spent, which can be redeemed for a variety of goods and services. This card also offers free basic travel insurance, exclusive discounts on Virgin Atlantic flights, and access to Virgin Money lounges. - TymeBank Credit Card
The TymeBank Credit Card offers a competitive interest rate and no monthly fees. Cardholders earn rewards points for every R1 spent, which can be redeemed for cash or used at participating retailers. This card also includes access to exclusive discounts and deals, making it an excellent choice for budget-savvy consumers. - Investec Private Bank Account Credit Card
Designed for high-net-worth individuals, the Investec Private Bank Account Credit Card comes with a higher monthly fee of R299 and a competitive interest rate. Cardholders earn rewards points for every R1 spent, which can be redeemed for a range of luxury goods and experiences. This card also offers complimentary travel insurance, access to airport lounges, and exclusive benefits tailored to affluent lifestyles. - RMB Private Bank Credit Card
The RMB Private Bank Credit Card, designed for affluent clients, offers a monthly fee of R299 and a competitive interest rate. Cardholders can earn eBucks for every R1 spent, which can be redeemed for various goods and services. This card also includes complimentary comprehensive global travel insurance, access to airport lounges, and exclusive lifestyle benefits. - African Bank Gold Credit Card
The African Bank Gold Credit Card offers a low monthly fee of R69 and a competitive interest rate. Cardholders can enjoy interest-free periods on purchases, making this card an excellent choice for managing cash flow. Additionally, the card offers free basic travel insurance and access to exclusive discounts and deals. - Bidvest Bank World Currency Card
The Bidvest Bank World Currency Card is specifically designed for frequent travelers. With a monthly fee of R49 and a competitive interest rate, this card allows cardholders to preload various foreign currencies, avoiding fluctuating exchange rates. This card also offers free basic travel insurance and access to Mastercard Priceless Cities offers. - Old Mutual Money Account Credit Card
The Old Mutual Money Account Credit Card offers a unique combination of a transactional account and a savings account. With a monthly fee of R45 and a competitive interest rate, cardholders can earn rewards points for every R1 spent, which can be redeemed for cash, vouchers, or used to save for future financial goals. This card also offers access to exclusive discounts and deals. - Ubank Credit Card
The Ubank Credit Card offers a competitive interest rate and a low monthly fee of R35. Cardholders can enjoy interest-free periods on purchases and access to exclusive discounts and deals. This card is an excellent option for those looking to build their credit score while managing their finances effectively. - Grobank Credit Card
The Grobank Credit Card offers a competitive interest rate and a low monthly fee of R39. Cardholders can enjoy interest-free periods on purchases, access to exclusive discounts and deals, and free basic travel insurance. This card is an excellent choice for those who value simplicity and affordability. - Bank Zero Credit Card
The Bank Zero Credit Card offers a unique, fee-free banking experience with no monthly fees or annual fees. Cardholders can enjoy a competitive interest rate and access to exclusive discounts and deals. This card is an excellent option for those looking for a no-frills, cost-effective credit card solution. - SASFIN Visa Platinum Credit Card
The SASFIN Visa Platinum Credit Card offers a monthly fee of R95 and a competitive interest rate. Cardholders can earn rewards points for every R1 spent, which can be redeemed for a range of goods and services. This card also offers complimentary travel insurance, access to airport lounges, and exclusive discounts on dining and entertainment. - Postbank Credit Card
The Postbank Credit Card offers a competitive interest rate and a low monthly fee of R30. Cardholders can enjoy interest-free periods on purchases and access to exclusive discounts and deals. This card is an excellent option for those looking to build their credit score while managing their finances effectively. - Grindrod Bank Credit Card
The Grindrod Bank Credit Card offers a competitive interest rate and a low monthly fee of R29. Cardholders can enjoy interest-free periods on purchases, access to exclusive discounts and deals, and free basic travel insurance. This card is an excellent choice for those who value simplicity and affordability in their credit card options.