The Best Choice for First Time Credit Cards
If you have a limited credit history, it may make it more difficult to get credit approval.
The best credit cards for young adults or first time credit card applicants are cards that offer the best chance of approval without charging unnecessary fees.
Tips to keep in mind:
- It’s important to check your credit score before applying for credit. You should also make sure that you shop around before deciding.
- Use the card for emergencies only. Avoid using your card as a primary means of payment.
In South Africa, Absa bank has a good credit card offer for first-time applicants who earn at least R2000 per month.
Another major bank, Standard Bank has a starter credit card with easy qualification requirements, which also offers ease of use for first time credit card applicants. The entry-level card has widened accessibility by reducing the salary that one must earn in order to qualify.
The bank has emphasised that is doing this based on customer affordability.
American Express has entry-level credit card that has a lower limit but also has great rewards. You will be rewarded for spending on your card by earning 1 point for every R5 spent.
Why credit cards are popular:
- There are no charges for swiping, while if you use a debit card, you will be charged.
- Debit orders can be linked to some credit cards. Some credit card providers allow clients to deposit their salaries into the credit card accounts.
- Online shopping becomes much easier when you own a credit card.
- Making larger purchases is simpler. You may have access to a budget facility that allows you to make larger purchases and pay the amount off over a longer period of time.
- The card can be used for ATM withdrawals
According to Moneyweb, “Standard Bank is the dominant player in the credit card market, according to September data from South African Reserve Bank. It has a market share of 30.5%, followed by Absa at 26.89%, FirstRand at 18.4% and Nedbank and African Bank at 14.04% and 8.23% respectively”.
