Credit cards offer a cost-effective and fast way of buying products and services online and in-store, and several entry-level options are available to South African residents through the country’s major banks.
These credit card accounts have low monthly fees and personalised interest rates and offer at least 55-day interest-free periods if your account is paid in full.
They also offer several benefits over other online transaction methods like electronic fund transfers (EFTs), instant EFTs, cryptocurrency, and mobile money platforms.
MyBroadband compared entry-level credit card deals from Absa, Capitec, Discovery Bank, FNB, Nedbank, and Standard Bank.
Standard Bank and FNB offer the most affordable entry-level credit card deals at R40 and R45 per month, respectively.
Customers must earn at least R5,000 per month to qualify for Standard Bank’s Blue credit account, which offers personalised interest rates, an interest-free period of up to 55 days, and a credit limit of up to R250,000.
The bank charges a once-off initiation fee of up to R180 for its Blue credit card account.
Notably, most banks offer 55-day interest-free periods with their entry-level credit card deals, the only exception being Absa, which extends the period to 57 days.
Similarly, all the credit card products compared offer personalised interest rates.
FNB’s Aspire credit card account requires a qualifying income of at least R7,000 per month and offers a credit limit of up to R250,000. FNB charges a once-off initiation fee of up to R175.
Regarding credit limits, Capitec’s Gl0balOne credit account offers the highest maximum limit of up to R500,000. To qualify, customers must earn at least R5,000 or R10,000 if they are self-employed.
Customers will pay a monthly R50 account management fee and a once-off initiation charge of R100.
Nedbank and Discovery Bank don’t specify maximum credit limits. Nedbank’s Gold credit account requires a minimum monthly income of R5,000, while customers must earn at least R8,333 per month to qualify for Discovery Bank’s Gold credit card.
The Discovery Bank Gold credit account is the most expensive listed, with a monthly management fee of R100 and a once-off initiation fee of up to R199.
However, a R150 initiation fee applies to credit accounts with a limit of R2,000 or less.
Nedbank’s Gold credit card is more affordable at R50 per month. The bank charges an initiation fee of up to R180.
Absa’s Flexi Core credit account has the lowest qualifying income requirement of the lot at R4,000 per month and a 57-day interest-free period. However, it also has the lowest upper credit limit at R90,000.
Customers pay R57 per month to use the account, and Absa charges up to R175 to activate it.
The tables below compare features and pricing for entry-level credit card products from prominent South African banks.
| Entry-level credit card comparison | |||||
|---|---|---|---|---|---|
| Bank and account | Qualifying income | Interest rate | Interest-free period | Credit limit | Benefits |
| Absa Flexi Core | R4,000 | Personalised | 57 days | Up to R90,000 |
|
| Capitec GlobalOne Credit | R5,000 (R10,000 for self-employed) | Personalised | 55 days | Up to R500,000 |
|
| Discovery Bank Gold Credit | R8,333 | Personalised | 55 days | Not specified |
|
| FNB Aspire Credit | R7,000 | Personalised | 55 days | Up to R250,000 |
|
| Nedbank Gold Credit | R5,000 | Personalised | 55 days | Not specified |
|
| Standard Bank Blue Credit | R5,000 | Personalised | 55 days | Up to R250,000 |
|
| Entry-level credit card banking fees | |||||
|---|---|---|---|---|---|
| Account | Transaction fee (local) | Transaction fee (international) | Transaction notifications (SMS) | Initiation fee | Monthly fee |
| Absa Flexi Core | R0.00 | R0.00 | R1.25 | R175.00 | R57.00 |
| Capitec GlobalOne Credit | R0.00 | R0 – R100: R2.00; R101 – R200: R3.00; R201 – R500: 5.00; R501 or higher: R10.00 | R0.35 | R100.00 | R50.00 |
| Discovery Bank Gold Credit | R0.00 | 2% of transaction value capped at R500 per transaction | R0.00 | R199 (R150 if the limit is less than R2,000) | R100.00 |
| FNB Aspire Credit | R0.00 | 2% of transaction value capped at R100 per transaction | R0.00 | R175.00 | R45.00 |
| Nedbank Gold Credit | R0.00 | 2% of transaction value | R0.50 | R180.00 | R50.00 |
| Standard Bank Blue Credit | R0.00 | 2.75% of transaction value | R1.00 | R180.00 | R40.00 |
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