Does your current paycheck limit you from affording essential needs? Have you tried other bank credit cards but were met with lofty interest rates and fees? If you answered yes, then you’ll want a credit card service that helps you afford purchases while charging low fees.
Now, that’s where the Capitec Bank credit card comes in! It’s a credit card that specifically targets low-income and middle-income earners, providing them with financing options when they can’t afford certain things.
What’s more, the card charges low fees and interest rates. In this article, we’ll cover the basics of the card, as well as the benefits and the disadvantages of using the card.
A Summary of the Capitec Bank Credit Card
The Capitec Bank Credit Card is a card from Capitec Bank, a South African bank serving many of the country’s residents. The credit card targets low and middle-income earners, helping them afford things that uplift their lifestyles.
With this credit card, you don’t have to put off paying for a purchase or service because of low funds. Instead, you can make recurring subscription payments and earn interest on services like Prime.
When it comes to paying back debt, Capitec bank allows you to choose how you’d like to make your payments. This way, you’ll find it easier to repay on time.
About Capitec Bank
Capitec Bank is a South African commercial bank that prides itself on its simplified banking processes, accessibility, and low fees. Their fees are reportedly less than half of what other providers charge customers.
Individuals aren’t the only types of customers they serve. They also help small and large businesses manage their finances by providing financial services like credit facilities, opening a business account, and managing payment solutions.
The Capitec credit card is only one of the multiple credit facilities for their customers. The other credit opportunities consist of giving loans to individuals who require them. However, a credit card is a better option for everyday purchases because it’s a recurring source you control.
Features of the Capitec Bank Credit Card
The card offers personalized credit based on your financial profile and affordability. You even get up to 55 interest-free days to pay for purchases, but after then, you’ll have to pay the normal interest fees. However, if you pay back your balance on time and maintain a positive balance, you can earn interest on your balance.
Also, if you’re a big spender and make many online purchases, you could get a credit limit of up to R500,000 to make reliable and secure purchases. Furthermore, the card enables you to make fast and hassle-free cashless payments by removing worldwide Mastercard card machine fees as well as online, telephone, and mail order fees.
International shoppers who love to source foreign products from home can make international payments with zero currency conversion fees. This allows customers to focus more on the actual cost of buying and shipping those items rather than calculating extra fees.
You Also Get International Travel Insurance
In parts of South Africa, getting insurance isn’t a big deal or something people go out of their way to get. But if you get a credit card that offers you international travel insurance, then it is a pretty sweet deal.
Your Capitec credit card gives you access to international travel insurance of up to R5 million to cover any unexpected medical expenses while traveling abroad. You may also opt-in for comprehensive top-up cover at your own cost if additional cover is required for trip cancellation, legal expenses, or lost baggage.
You, however, must meet all conditions for your travel insurance coverage. First, you must pay for your flight ticket in full with your Capitec credit card. The next criterion is that you must be under 75 years of age and plan your trip to be shorter than 90 days.
Also read: FNB Credit Card – Learn How to Apply
How Do You Apply for the Capitec Credit Card?
There are three ways to apply for a Capitec Credit Card, namely the online application, mobile app, and a physical branch visit. For those who prefer offline banking or aren’t quite adept at doing things online, visit the nearest Capitec bank branch with the required documents.
A more convenient option would be to apply online by visiting their website and filling out the Capitec credit application form. Then, a representative will call you to walk you through the rest of your application.
Capitec clients and account holders can simply apply for a new credit card with their mobile banking app. It’s straightforward because Capitec bank already has all the necessary information needed to process the application unless you want to change something.
Once your application is submitted and approved, it takes three to five days to get your card delivered to you at home for free. If you will be unavailable to collect, ensure you contact the bank before 4pm on the day before your original date.
What Documents Do You Need to Apply?
If you want to apply in person at a bank branch, you must bring original documents that certify the information required. These include documents affirming your age, name, salary, and income stream.
You’ll need original government-issued identification documents and name change documents (if your surname or name differs from your identification document). To prove your financial standing, take your latest salary slip and a stamped bank statement showing the last three salary deposits.
Fees and Interest Rates
The Capitec bank credit card might have a premium look and benefits, but it doesn’t come with premium fees and rates. In fact, Capitec bank prides itself on having only a few costs associated with the card.
Once approved, you will need to pay an R100 initiation fee for opening your credit card. After that, cardholders will pay an R45 monthly fee. After that, Capitec will charge you R69 in addition to the usual rates and fees you’re obligated to pay if you have arrears.
The interest rate is among the lowest in South Africa and stands within the 10.75% to 21.25% range. Your specific interest rate depends on your credit profile and Capitec’s computations.
Capitec targets low-income and middle-class earners, and most people will find themselves within the eligibility parameters.
The first and foremost requirement to apply for a card is that you must be 18 years or older and have government-issued identification to prove it. The documentation must be the original version and not a photocopy.
Secondly, you must have a constant and reliable income stream where you’re either earning a salary of at least R5,000 or self-employed with a minimum income of R10,000. Despite the low fees, you still need to afford the payments, so if you don’t meet the income requirement, maybe a credit card isn’t your best option at this time.
What Benefits Do You Get?
As a Capitec credit card holder, you receive immense benefits from using the card. Right from when you get approved, your first credit card delivery is done free of charge. Further, you can schedule the delivery based on the time you’ll be available to receive it.
Furthermore, the low fees and low-interest rates make it an affordable option for most people. As long as they’re smart about their decisions, they can make timely payments without accruing exorbitant fees or payment backlogs.
And if you shop locally, you get free local swipes from all merchants and payment points. So you never have to worry about transaction fees, only what you’re paying for and the joy a new product or service will bring you.
Low Fee Deception
As much as the Capitec bank credit card affordability is a huge plus, it could also be a drawback to anyone who doesn’t have a grip on their finances. If consumers don’t have a proper financial plan and can’t manage money and expenses before receiving their card, low fees won’t magically make them smarter with money.
Instead, the low fees and rates would present a mirage that they can afford to make payments anytime they like. This temptation could spur them to spend more than they should without knowing they’re making a mistake.
Following that, it’s a good thing that Capitec has a financial education section. On that page, customers can find helpful resources for managing their finances better.
Address and Contact
Whether you have questions about your application or need to cancel a lost card, the customer service personnel at Capitec bank can be reached via simple channels.
To chat with the bank on WhatsApp, send a message to 067 418 9565 from Monday to Friday, between 8 am and 5 pm. If you’d prefer a phone call, dial 021 941 1377.
If you ever notice a fraudulent transaction on your card, report it to the South African Police Service (SAPS) by calling the 24hr Client Care Centre on 021 941 1377. For lost or stolen cards, call 021 941 1377 or open your mobile app and stop your card by selecting the lost card and tapping the ‘stop’ option.
How to Manage Your Credit Card
Using your Capitec credit card goes beyond simply swiping and tapping to make purchases. You also need to update your credit limit, transfer balances between repayment options, stop a card, and many other things.
These activities are all easily doable from the free Capitec mobile app. Simply log on, tap on the cards icon on the bottom menu tab, and select ‘stop card’ or any other option you want to carry out. Then, follow the same steps to set your temporary or permanent limits.
By setting your transaction limit within the app, you can manage your spending easier. And if the card gets stolen, the thief can’t spend beyond your set limits.
Customers within the low-income spectrum can start applying for the Capitec credit card. It’s a convenient credit card that pays for lifestyle choices now rather than waiting for a later time.
Note: Consider the risks involved in using credit products before applying by consulting the issuing institution’s terms and conditions.