Having a credit card can be a convenient way to make purchases when you don’t have access to cash or if you want to make large purchases and you don’t want to have to carry large amounts of cash with you. A credit card is essentially a type of loan and the card’s interest rate is the price that you pay for borrowing this money.
The Annual Percentage Rates (APR) are the interest rates on credit cards which are typically stated as a yearly rate.
Even though the statistics indicate that more South Africans are struggling with debt, there are merits to having credit cards. You can use the cards for online shopping, to pay for flights or accommodation or for paying for emergencies when you don’t have the cash to do so.
When you’re shopping around for a credit card to suit your needs, comparing interest rates is a must. Finding low interest credit cards in South Africa involves taking the time to do the necessary research. The key to managing your debt is to ensure that you aren’t paying vast amounts in interest.
It’s important to know how much you are being charged in case you need to use the credit facility. On most cards you can avoid paying interest on purchases if you pay your balance in full each month. If you don’t clear the balance, you’ll pay interest. So it’s important to look for the cheapest card with the lower monthly fee.
According to comparison site Clickn Compare, these are low interest credit cards in South Africa:
- Bluebean Silver 4.75%
- Bluebean Gold4.75%
- Bluebean Classic8%
- FNB Classic14%
- FNB Gold14%
- Absa Gold`18%
- Nedbank Classic18%
- Standard Bank Gold 22.4%
- Avios23%
- Standard Bank Blue24.85%
- British Airways24.85%
- Absa Transact Credit27%
