It’s time to take control of your credit card and make it work for you. Learn the secrets to maximizing rewards and minimizing stress with expert tips and tricks
Credit cards can be a powerful tool in your financial arsenal, but only if you know how to wield them correctly. Whether you’re a seasoned points player or just starting to build your credit score, we’ve got the lowdown on how to max your rewards, avoid costly mistakes and choose the cards that’ll give you the most perks. We’re about to take you on a crash course in credit card mastery, from snagging the best cards for your lifestyle to exploiting loopholes that’ll save you serious cash. We’ve done the research for your benefit. Let’s get into it…
Credit card terminology 101
Billing Cycle: The period between statements, typically a month, during which transactions are accumulated, and interest is calculated.
APR/Annual Percentage Rate: The interest rate charges on your credit card balance.
Credit Score: A number that represents your credit worthiness.
Cash Advance Fee: Charged when you withdraw cash from your credit card, often a percentage of the withdrawn amount.
Airline Miles: Rewards points earned on credit cards that can be redeemed for purchasing flight tickets.
Travel Insurance: Insurance coverage for travel-related issues such as trip cancellations or delays.
Dynamic Currency Converter (DCC): A service that allows merchants to convert a transaction’s amount into your home currency in real time — note, often with unfavourable exchange rates and fees.
Foreign Transaction Fee: Charged on purchases made abroad or in foreign currency, typically a percentage of the transaction amount.
Revolving Credit: Allows you to borrow and repay funds repeatedly, up to a maximum credit limit, without having to reapply for a loan.
@sandimfeka Another day, another way around credit. #creditcard #moneytoks #fintok #sandimfeka ♬ original sound – Sandi Mfeka
1. Choose the right credit card for you
We listen; we don’t judge — unless you’ve chosen a card without doing any research. Jokes aside, when it comes to credit cards, it’s essential to consider your individual needs and financial goals. Before visiting a bank, think about your income, spending habits and credit score (see opposite) to determine which type of card will work for you, not against you.
Look at it like this: if you’re a frequent traveller, a card with travel rewards and airport lounge access would be ideal (see No.3). If you want to build credit, a secured credit card or one with a low introductory APR (annual percentage rate) would be the best fit. Compare cards to find ‘the one’ that aligns with your lifestyle and financial objectives.
2. Maximising rewards and benefits
Now that you’ve gotten that out of the way, it’s time to learn about how to maximise rewards and benefits. It’s crucial to know what type of purchases earn rewards so you can take advantage of bonus categories and promotions. Consider using a card with a rotating rewards category or a card that offers cashback in specific categories such as groceries or fuel. Additionally, look for cards that offer a sign-up bonus, anniversary bonus or other perks that can boost your rewards earnings. By strategically using your credit card, you can earn valuable rewards and benefits that enhance your lifestyle.
More ways to save money and reduce financial stress? Pay your balance in full each month — timely payments minimise interest charges. Live within your means and do your best to avoid overspending, as it can lead to debt and financial difficulties later on.
3. Perks in the air
Jet-set your wallet into high gear with credit cards that offer extra perks to enhance your travel experience, whether you’re a frequent flyer or weekend warrior. These might include travel insurance, airport lounge access, personalised travel planning or travel credits that can be redeemed for flights or hotel stays.
Consider the Standard Bank World Citizen credit card, which offers up to 35% off on Emirates flights, and access to over 100 local and international lounges, and complimentary stays at more than 200 Marriott Bonvoy hotels.
The Nedbank SAA Voyager credit card provides unlimited access to SAA lounges for premium cardholders, earns air miles on day-to-day purchases and offers flight discounts of up to 40%.
The Absa British Airways Travel credit card offers Bidvest Premier Lounge access eight times a year-four on domestic flights and four on international flights — for primary and secondary cardholders. The FNB Private Wealth Travel credit card offers up to 36 complimentary SLOW and Bidvest Premier Lounge visits per year (depending on your reward level), 40% off selected flights and car rental when you book with eBucks Travel, and 12 additional airport lounge bonus visits (domestic or international).
Cashback credit cards are the ultimate reward for being a savvy spender
4. Cash in with every swipe
Life’s too short to spend money without getting something back, right? That’s where cashback credit cards come in — the ultimate reward for being a savvy spender. You’re not just buying stuff; you’re building a stash of rewards that can fund your next big adventure or simply pad your pocket.
The benefits are real, such as cashback rewards on purchases which can be redeemed for statement credits or cash; points rewards that can be redeemed for merchandise or gift cards; category-specific rewards such as groceries, fuel or dining; buy-one-get-one-free and so on.
The Woolworths Black credit card offers 3% back on Woolworths spends in WRewards, and an additional 1% rewards in Woolies vouchers every three months. It also provides free hot beverages, free Woolies online delivery and medical assistance abroad. (Note: you need to earn R41 666 or more per month and have a valid SA ID number to qualify.)
The Discovery Bank Platinum card offers up to 50% back on healthy grocery purchases in-store or online at Checkers or Woolworths; up to 50% back on personal-care items at Clicks or Dis-Chem with HealthyCare, and on baby essentials at Babies R Us, Toys R Us or Dis-Chem Baby City with Healthy Baby; up to 15% back on fuel purchases at BP and selected Shell service stations; up to 15% back on Uber rides, and up to 3.5% back on bank-integrated Discovery Life insurance premiums.
The ABSA Rewards card offers up to 30% back on fuel, groceries, health and beauty products when you purchase from selected stores. Membership is free, and you can earn rewards points according to your product category.
5. Bring on the fun
Whether you’re a foodie, a shopaholic, a film buff or a thrill-seeker, there’s a card out there that’s tailored to your lifestyle. We’ve found you the perfect match!
From credit cards that offer access to exclusive events such as concerts or sporting events and major entertainment benefits (think movie tickets, concerts or festivals with early bird or VIP access, and theatre tickets), there’s no reason for FOMO.
The American Express Platinum card offers exclusive presale tickets and you have access to a Premium Events collection, which allows you to buy tickets to see inspiring exhibitions, attend some of the world’s biggest sporting events, experience acclaimed restaurants and more.
The Nedbank Gold credit card gives you up to 60% off Nu Metro movie tickets, while the Nedbank SAA Voyager credit card offers 60% off on Nu Metro Xtreme movie tickets and 50% off on 2D, 3D and VIP movie tickets (excluding 4DX). Plus, you’ll pay half price for cinema refreshment combos.
The Standard Bank Titanium credit card’s UCount Rewards offer discounts and can be redeemed for movie tickets or entertainment, sporting events and gym memberships.
The FNB Aspire credit card offers eBucks rewards points that can be redeemed for movie tickets and other forms of popular entertainment.
Note that many of the rewards-based credit cards require a certain income level to be able to qualify (the hint is in the name… platinum, gold, etc). If you don’t fit into that category just yet, keep shopping around and focus on the one that will give you some benefit. After all, some reward is still better than none.
How to check your credit score
Take the first step towards financial freedom and check your credit score today — your future self will thank you!
Why? Because your credit score speaks volumes to lenders, landlords and retailers about your financial reliability.
Start by heading to the websites of the major credit bureaus like TransUnion, Experian or Compuscan. Sign up for a free account, and voila! You’ll get instant access to your credit score and report. You can also use online platforms such as Clear Score or CreditSavvi, which offer free credit score checks and personalised tips to help you boost your score.
By: Emma Mbuthuma
Photography by: Gallo/Getty Images
Text courtesy of Man magazine
