4 things to consider when choosing a credit card

 

In fact, looking carefully at all the options and benefits offered by different cards could set you on the road to financial freedom. Start by getting a card that’s tailored to your needs while offering features and benefits suited to your lifestyle. With this in mind, here are the 4 main things you should look at when considering a credit card.


1. Your interest rate

As with any form of credit, you pay interest on any money that you borrow. Which is exactly what you’re doing when you use your credit card.

Unlike a personal loan, though, you only pay interest only once you’ve bought something on your card. And even then, you’re only charged interest if you haven’t paid back the full amount within 55 days of using your card.

But just like a personal loan, the interest rate on your card is directly linked to your credit score. This score is a measure of your creditworthiness and reflects how well you manage your overall debt. The better your score, the better the chances that you will receive a lower interest rate.

A quick way to get a lower interest rate – even if only for a limited period – is to apply for a balance transfer on your Nedbank credit card. This works only if you have an existing credit card with another bank, because you will be transferring the outstanding balance to your new Nedbank credit card.

Find out more about interest rates.


2. Know the costs involved

As with any account or store cards you have, there are certain monthly fees on your credit card account. It’s important to understand what these are and how much you’ll be charged every month. On top of your regular account fees, it’s just as important to know when and why you’re charged extra fees or penalties.


3. Built-in security measures

Apart from being an open line of credit you can use when needed, your credit card is packed with helpful security features. This is important when shopping online, and is not restricted to buying something without physically presenting your card.

If illegal transactions are made on your card, you can recover the funds after you have successfully disputed unauthorised transactions with the credit card provider. As with so much in life, you might appreciate these security features only when you need to rely on them.


4. Features and benefits that suit you

It’s important to consider the different features and benefits offered by a credit card, too. For example, if you travel a lot, then a card that offers you special travel and accommodation deals makes a lot of sense. If you don’t travel all that much, you have to weigh up whether those deals are worth it if that card has higher fees.

You will also get extra benefits if you’re a member of the Nedbank Greenbacks Rewards ProgrammeThis is especially true if you have an American Express Credit Card, because you can earn double the points when using this card for day-to-day expenses.

Find out more about the special features and benefits you will get with a credit card from Nedbank. But know that from only R40 per month you can get a new Nedbank Gold Credit Card and pay zero fees when you tap, dip or swipe to pay. Learn more.