Credit cards have got a bad rep over the years because they have come to be associated with debt and reckless spending. But this is not the case! As a financial tool, your credit card can be convenient, safe, and smart, especially if you’re trying to save money on a tight budget. That’s right! Your credit card can actually help you stick to your budget!

Let’s take a step back…

What is a credit card?

You’ve probably heard that a credit card represents money that belongs to your bank and that you’re required to pay back at the end of the month. Well, you wouldn’t be wrong. In fact, a credit card is quite literally pre-approved credit that your bank offers you for a monthly fee. You’re required to pay back the amount borrowed, either in full or over a period of time, through minimum monthly repayments. This is your credit card balance, and it’s a good idea to close it off (or pay its full amount) each month to avoid accruing interest on that amount owed.

Why should I use a credit card?

Like we said earlier, the “buy now, pay later” concept has been misused over the years and the credit card is having a hard time restoring its reputation as a handy financial tool. But, rest assured that your credit card can help boost your budget, especially during tough economic times. When used correctly, you’ll reap these benefits of your credit card:

• It’s convenient

When was the last time you withdrew cash at an ATM? One of the perks of using a credit card is that it relieves you of carrying cash. Not only is this safer, but it’s also easier to track how much you spend daily, weekly, or monthly.

• It’s easier to track your spending

Speaking of tracking spending, you can monitor your spending by checking your credit card statement. This is important if you want to know how much you’re spending on credit, what you’re funding with credit, and where you need to cut back. It’s easy because you can access your credit card statement on your African Bank App.

• It helps you build your credit score

Using a credit card is an easy way to build up your credit history. When you use your credit card responsibly, you can establish a high credit score. A high credit score signals to lenders that you are likely to make good on your loan or credit card payment. This works to your advantage when you need to apply for a loan, a new credit card, apply for rent, and even when you buy a new house or car. On the other hand, a low credit score can hold you back financially, but, it can be improved. Make sure you check your credit score regularly on your Credit Report, which you can access for free here.

Ready to get started?

The African Bank Credit Card gives you all these advantages and more. When you apply for your credit card, you’ll earn interest on your positive balance and if you settle your payment in full by the due date, you’ll pay no interest on your POS purchases. With The African Bank Credit Card, you get 62 days interest free if you settle your Credit Card in full by the due date.

Earn rewards points with Audacious Rewards

You can earn rewards every time you shop with your African Bank Credit Card! Our award-winning Audacious Rewards programme lets you earn points whenever you swipe your card. Redeem your points for vouchers on the Audacious Rewards Store and on the 20th of every month, Audacious Rewards Day, you can even double your points.

Apply for your credit card online or at your nearest African Bank branch.

Terms and conditions and affordability criteria apply. African Bank Limited 2014/176899/06, is an authorised FSP and registered Credit Provider (NCRCP7638)