3 Reasons to get and use a credit card

Due to financial constraints many of us are hung up on the 'one day' syndrome. We put some of our life plans on hold because of big financial decisions that need to be made.  But that doesn't have to be the case. Used responsibly, a credit card can set you on your way to that next life-changing appliance, fund an urgent need to travel, or open the door to a universal purchase.  

The irony is that we seldom see the positives of having a credit card at first, neither are we equipped with the knowledge of how to use one at a reasonable age.

The fact is that most banks will offer you a credit card soon after you get a job, usually with the enticing words of “you qualify for a credit card”. However, as enticing as it can be, you still have to go in with enough information. We’ve all heard an anecdote about someone who is deep within the abyss of credit card debt and that has made us wary of getting one.

Are you hesitant to get a credit card? Don’t be, because having a credit card can be very beneficial for your financial future if you know how to use it wisely. As with most matters concerning money, self-discipline comes into play.

The importance of having a credit card

Growing up, we may have been cautioned against using a credit card at all and encouraged to live a cash only existence. However, now we hear about the importance of credit cards, having a credit score and maintaining good credit ratings. It’s time to learn some of the lingo and get familiar on how to make financially responsible decisions with a credit card. 

The benefits of using a TymeBank credit card

1. Interest-free period of 55 days

For the TymeBank credit card, the interest-free period is 55 days. It begins on the first day of the statement period and ends on the last day payment is due. Put simply, if you make a purchase on day 1 of a statement period (1 April to 30 April), you have 55 days before interest is charged. Let’s say you make a purchase on 30 April; you still have 25 days to pay off your debt before interest is charged.

2. Earn 4x Smart Shopper points

One of the advantages of using the TymeBank credit card is earning Smart Shopper points, no matter where you shop. It even gets better, when you swipe it at Pick n Pay, your points are multiplied four times. Until end of April 2022, if your purchase at Pick n Pay would have earned you ten points, with your TymeBank credit card you’ll earn 40 points. After this launch offer, customers will earn double every time they shop.

3. Personalised card

Your TymeBank credit card is automatically linked to the Pick n Pay Smart Shopper programme, so even if you forgot your Smart Shopper card, you’ll still earn points when you swipe with your credit card.

You can apply for the new TymeBank credit card here.

Credit Card Lingo 101  

What is a credit score?  

Credit score is a number that informs creditors of your financial behaviour, like payment history, account information (age of the account), amounts owed and any defaults against you. Based on your financial behaviour- this is essentially how creditworthy you are.

What is a credit history?  

Let’s say you want to buy a car or just open a clothing store account, the first thing your bank will do is check your credit history. In this manner the bank will monitor your previous repayment history on bills and loans and decide if they can finance you. The best way to build and improve a credit record is to make your payments on time.