This way, you can conclusively determine whether it’s the best credit card for your financial needs.
Today, we explore the functionality and viability of the Capitec Credit Card. What does it offer? Will it be the solution you need for your personal or business finances? Or is it another burden you add to your future finances?
Let’s find out;
Features of the Capitec Credit Card
How does R500,000 sound for the initial credit limit? Well, that’s the first thing you notice from this card. It gives cardholders a generous credit limit to enable their personal or business purchases. The Capitec credit card limit is personalized based on your income and profile.
The second notable feature of the Capitec Credit Card is the interest-free offer period on purchases. You have a grace period of up to 55 days for purchase payments. This gives you enough breathing space before you start being charged interest.
The card also boasts zero currency conversion fees when shopping internationally. This makes it ideal for global purchases.
Lastly, this card offers an excellent way to complete those cashless payments. Even better, it doesn’t charge any fee for global payments at any Mastercard card machine or online.
How the Capitec Credit Card Works
The Capitec Credit Card gives you an initial credit limit of R500,000 maximum. That’s a generous limit to help kick-start your credit card journey.
However, you need to be approved before you can start spending this money. Your card’s approval and limit depend on various factors, including income and credit score. But after you get your card, you can instantly start using it and earning that 1% guaranteed cashback on all your purchases.
As a cardholder, you enjoy free card swipes for local purchases. Also, you get interest from the prime of 3.5% annually if you maintain a positive balance.
This credit card usually has a purchase APR of 11.75% to 22.25%. Plus, there is a one-time application fee of R100.
The card is a great option as it allows you to shop globally, with zero fees at Mastercard machines.
Pros and Cons of the Capitec Credit Card
Like any other credit card, the Capitec Credit Card has its good and bad sides. For instance, some review sites have rated it at 1.9 stars out of a possible 5 stars. Why? Let’s find out;
Benefits of Capitec Credit Card
The first benefit that catches our attention with the Capitec Credit Card is the huge R500,000 initial credit limit. While it’s dependent on your credit score profile and income, it’s sizable enough for those who qualify.
Secondly, the card charges zero annual fees. This means that you can reap your rewards without incurring any extra annual costs.
The 1% guaranteed cashback on purchases is also an attractive feature of this card. It gives you an opportunity to earn cashback on all your purchases without categories. Positive balances earn around 3.5% interest annually.
Also, the low-interest rate, 11.75% to 22.25%, is an attraction. This means that you can afford your purchases without breaking the bank.
Did you know that the card offers travel insurance? Yes, it does! With this card, you get an international travel insurance cover. This covers any medical expenses (unexpected) that occur during international travel. And if you want an international cover, you can get one at an extra cost.
Lastly, the card has a mobile app. This allows you to manage all your credit card activities from your phone.
Capitec Credit Card Cons
The Capitec Credit Card offers a lot of value, but there are some downsides to consider. For starters, the credit card offers a meager cash back on purchases. While some cards offer up to 5%, the Capitec card offers a 1% cash back on purchases.
Also, there is no welcome bonus for using this card. And while there is no annual fee, there is a monthly fee of R50. That’s around R600 in a year.
Lastly, your initial credit limit depends on your income and credit card score. As such, some people may be locked away from using this card due to income and credit score constraints.
Rates and Fees of the Capitec Credit Card
The first charge you incur for using this card is the one-time R100 application fee. From here, there is a monthly fee of R50.
The credit card charges an interest rate on purchases of between 11.75% and 22.25%. But you have a 55-day grace period before this starts to apply.
Eligibility Criteria and Requirements
Qualifying for this credit card is not hard. However, there are some requirements that you must meet.
The Capitec Credit Card is a South African credit card. So, you first need to be a South African resident to apply. Also, you must be 18 years or older.
Your income is also quite important. You must be permanently employed, self-employed, or have a stable source of income. The minimum income requirement for employed persons is R5,000, while that of self-employed is R10,000.
Other requirements for the application include an SA ID card, the latest payslip, and a 3-month account statement. From here, you can go ahead and apply.
Capitec Credit Card Application Process
When it comes to applying for the Capitec Credit Card, you have three options. First, you can go online to their website or through the app and apply.
The second option is to call them on 0860 66 77 89 to start your application. Or, if you are near a branch, you can simply walk in and apply physically.