Do you want to get a Capitec bank credit card but you are still wondering how it works in South Africa? We are here to answer all your burning questions. At the end of the day, you will know how to apply for a Capitec bank credit card online and also aware what it can do for you.
Capitec credit card provides you with a convenient way to make purchases and access credit, but it’s essential to use it responsibly and repay any borrowed funds on time to avoid accumulating debt and incurring excessive fees and interest charges. In case you need other options of how to borrow money online in South Africa, kindly check out these simple loan apps with affordable interest rates.
How does a Capitec credit card work in South Africa?
Here is how a Capitec bank credit card works in South Africa to borrow money online, pay bills, buy goods and digital services online and withdraw through the ATM:
1. Application and Approval
To get a Capitec credit card, you need to apply for one through Capitec Bank. The application process typically involves providing personal and financial information, including your income, expenses, and credit history. Once you apply, Capitec will assess your application and determine whether to approve you for a credit card and what credit limit to assign.
2. Credit Limit
If your application is approved, Capitec will assign you a credit limit. This is the maximum amount of credit you’re allowed to borrow on the card. Your credit limit is based on factors such as your income, credit history, and affordability.
3. Card Activation
Once you receive your Capitec credit card, you’ll need to activate it before you can use it. This typically involves following the instructions provided with the card, which may include calling a phone number or activating it online through Capitec’s banking app or website.
4. Using the Credit Car
Once your card is activated, you can start using it to make purchases in-store, online, or over the phone, wherever credit cards are accepted. You can also use your Capitec credit card to withdraw cash from ATMs, although cash withdrawals usually incur fees and may have interest charges.
5. Repayment
When you use your Capitec credit card to make purchases or withdraw cash, you’re essentially borrowing money from Capitec. You’re required to repay the borrowed amount, plus any interest and fees, according to the terms of your credit card agreement. Capitec typically provides a minimum repayment amount each month, but you can choose to repay more if you’re able to.
6. Interest Charges
If you don’t repay the full balance of your credit card by the due date, Capitec will charge you interest on the outstanding balance. The interest rate applied to your credit card balance is determined by Capitec and is typically based on factors such as the prime lending rate and your credit risk profile.
7. Monitoring and Management
Capitec provides online banking and mobile banking apps that allow you to monitor your credit card transactions, check your balance, make payments, and manage your account settings conveniently from your computer or smartphone.
