Bad credit is like a headache that just won’t end. Having poor credit can get in the way of everything from leasing a car to buying an apartment, so it is important to take the necessary steps to correct it. Thankfully there are a number of outstanding credit cards that can help you rebuild credit and regain control of your financial future.
Here is a list of five of the best options for South African credit cards to rebuild your credit.
1. Capitec Global One Credit
Capitec’s Global One Credit card is an ideal choice if you can pay off your balance on time. Along with 55 days of interest-free grace time, this card lets you earn up to 4.5% interest if you have a positive balance. You can get credit up to R250 000 and there are many customization options on the card. This includes a cashless purchase option and the ability to pay a personalized interest rate of as low as 9.75% per year depending on your credit status. The cost to get this card is R100, it costs R35 a month and its interest rate ranges from 9.75-20.25% depending on how your credit has been assessed. Overall this is a very good card that is highly recommended and will help many people climb out of a credit hole.¹
2. Absa Student Credit Card
The Absa Student Credit Card is another good option for those who don’t have a great credit score and want to work towards improving it. As the name suggests, this card is for students only. In order to qualify you need to be South African, a student and have at least R200 in income per month.
This card has no surcharges for purchasing things with it, although if you take out funds there is a R3.95 charge. There is also a 1.15% surcharge from an Absa cash machine or a 1.15% surcharge plus R9.95 on a non-Absa cash machine. The biggest benefit of this card is that if you keep your balance above zero you get 0.2% interest paid to you. Alternatively, if keep a negative balance you have to pay at least 3%. The credit limit on this card is R200 and it has an APR of 18 percent, but it can be a great option for a responsible student.²
3. Virgin Money Credit Card
The Virgin Money Credit card is well suited to people who don’t have a giant income but still want a good credit card. It doesn’t have any annual fee or balance transfer fee, but it does have a minimum salary requirement of R5 000/month. The benefits are numerous, however, including up to 55 days interest-free and the option to add up to three extra cardholders at no cost.³
4. Standard Bank Gold Credit
The Standard Bank Gold Credit Card is another prime choice for those with small incomes. That said, this card does have a minimum salary requirement of R5 000/month and has a small monthly fee of R54. Interest rates charged are flexible depending on your credit profile, but you pay no interest so long as you can pay off the card in full within 55 days. It also offers many other advantages including discounts as large as 35% on flights with Emirates Airlines and UCount rewards points for each time you use the card.⁴
5. FNB Gold Credit Card
The FNB Gold Credit Card has many advantages including comprehensive worldwide travel insurance, debt protection and free emergency roadside help with a linked Petro card. You can also make money on this card—specifically up to 15% back in eBucks rewards depending on the category of your purchases. Again here, interest rates are variable depending on your credit profile and the card offers a generous 55-day window to pay off the card interest-free. In order to qualify for this card, you must earn between R84 000 to R299 999 per year.⁵