Publish Date: 21/01/2020
Ways a credit card can save you money
Credit cards might be one of the most misunderstood financial products. Many think they are equivalent to debt. However, when used correctly, credit cards can help you save money. With most banks offering the option of a credit card application online, getting your own credit card is now easier than ever.
Here are some of the ways you can use your credit cards to your advantage and save money in the process:
Earn interest on positive balance
Some cards offer additional interest every year if you make prompt repayments and have a positive balance in your bank accounts at end of the year. This will help you save towards your long-term goals without any investment risk. One such card is the African Bank Gold or Silver Credit Card, where you can earn 3% interest per year on a positive balance. Click here to open a new bank account online today.
Build a good credit profile
The key to saving money using a credit card is to pay back the full amount promptly. With an African Bank credit card, if you settle your outstanding balance by the due date you will pay no interest at all. To benefit from the good interest rates from a positive credit card balance, think of your credit card as a mode of saving and not as a loan. By doing so, you will also build up your credit profile and enjoy favourable terms in future loan applications, such as home loans, car loans etc. These favourable terms can include a lower interest rate.
More and more online shops offer great discounts on online purchases. Having a credit card can also help us save money when we shop online. Use African Bank’s online credit card to make secure payments when shopping through the Internet. Below are a few tips to help you save money when shopping online:
If you are disciplined with your spending habits and make prompt payments to your credit card, you will discover that a credit card can be a useful tool in your financial arsenal!
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.