This is some legitimately great advice. Guys do not mess with credit cards if you do not have financial discipline. I’m on my second card now. First one was a complete mess, Oh My Goodness😭😭. Revolving credit will mess your life up. Start with a clothing store account. Test yourself there.
Absolutely 💯 But even clothing accounts are dangerous without financial discipline 😅. What we need to encourage more is financial discipline. I'm glad you managed to turn around your situation and learnt from your mistakes with your first credit card👌🏾👌🏾👌🏾.
Thank you so much for sharing. I’ve been delaying getting a credit card because I buy and love things too much. Now that I’m older and have been reading more about credit, I’m considering getting one. This video will be good advice for when that day come. ❤
Welcome back😁 The older I get the more I have accepted that all financial products have their own specific target market. The discipline required with owning a credit card makes me think they are not meant for everyone hey😅
Really?! I didn't see it that way😅. Well, this was not meant to be any promotion for any bank, but to answer you, the credit card I was referring to in this video is from the green bank. Note I also bank with 3 other banks, though, for different reasons. Thanks for watching ❤️
Hey sis, first time getting a credit card. So they said I can opt for a debit order which will go on every month (3 % of what I use)… so now what if I don’t use anything on my credit card that month. Does the debit order still go off ,
Hey, like I recommended in the video, always pay your credit card debt in full every month if you use it. If you pay only 3% like they say, you'll ultimately pay over 20% per annum/year on your balance, and this nullifies all benefits of owning a credit card.
Hi there, I’m quite late but I’m thinking of getting a credit card. For this month I’d be using more than 30% of the amount but plan to pay it back at the beginning of Jan. Since it’s the first month of my card, would it look bad if I have a high utilisation even though I’m going to pay it back in less than 15 days?
Hi👋 If you pay your credit card debt in full within 15 days, as you say, it shouldn't negatively affect your credit score. Remember, this is not financial advice.
Just to make sure I got this 100%: So if I use 20% of my credit Then My bill comes out on January 22nd And it says My due date is February 18th I then pay the full balance on February 3rd And then Between February 3rd and February 16th, I make 15% more charges on my now paid off card So Do they report the 15% I have done after I paid on February 3rd or do I have till March 16ish to pay off this new 15% so it doesn't get reported or look bad on my credit history?
Hi Marcus, I have had this exact question when I first got a credit card, and upon asking my bank, they said the clause "up to 55 days interest free" means the interest free period could be less than 55 days and generally the interest free period for purchases starts on the date the purchase first appeared on your statement and ends on the due date for payment on that statement. I don't know if this is bank specific or regulated by the NCR - please confirm with your bank. However, in my anecdotal experience (remember I'm not a financial advisor), I've tested this and worked with paying my credit card off completely every 30 days and curiously scrutinized my statement for 6 months and confirmed I was never charged interest. Using your example, I have made purchases in that curious period of the 3rd -16th Feb, after having paid off my 22nd Jan balance in full on 3rd Feb, not paid off the new purchases until 3rd March, and not charged interest in my 22nd Feb monthly statement although my purchases appear in this statement - making me assume I indeed have until 16th March to pay them off. NB: I have only done this test with my credit card from a bank and not a clothing account or any other type of unsecured credit. Happy to discuss further, remember to confirm with your bank.
Thank you sis tlaly, does all of this also apply to eg. clothing credit cards? I'm only 24 and don't wanna take out a credit card with my bank. I'm afraid i'll use it till max and get in dept cos i really lack discipline shem😆
Hi Rinae, thanks for watching ❤️. Credit cards are different from clothing acounts in the points I mentioned here except that they both help you build your credit score and you can manage both of them well by just paying off your full balance every month end. If you fear that with a credit card you'll max it, then you're likely to do the same thing with a clothing account. Rather work on your discipline. I would go for a credit card over a clothing account given the choice but discipline is very important 🙌🏾.
Hi Nthabiseng, Yes, using all the money in your credit card negatively impacts your credit score. If your limit is R5000, try not to spend more than R1500 on your credit card. Your limit is what the bank allows you to spend on your card with the expectation that you can and should pay back - it is calculated based on your affordability and/or income. If you have already used up your R5000, yes, you have to pay it back and always pay back any money owing on your credit card within 30-55 days. Know the terms and conditions for your specific credit card. If you just have a limit of R5000 but have not used your credit card, then you don't have to pay anything to the bank. The limit is just your total available balance. Hope this helps, and keep watching to grow your knowledge. Please note that I am not a financial advisor, and this is not financial advice.
Using all the money available in your credit card can have disadvantages depending on your financial situation and payment habits. If you use your. credit card for all your purchases and you don't have enough money to pay off the balance in full each month, you will likely end up paying interest charges on the remaining balance. Interest rates on credit cards can be high, and the longer it takes you to pay off the balance, the more interest you'll end up paying. This can quickly add up and make your purchases much more expensive than if you had paid in cash. In South Africa, credit card issuers usually require you to pay at least the minimum payment on your outstanding balance each month. This is usually a small percentage of the total balance or a fixed amount, whichever is greater. If you only make the minimum payment, it will take you longer to pay off the balance, and you will end up paying more in interest charges. If you use your credit card responsibly by paying off the balance in full each month, using your credit card can actually be advantageous, as it can help you build a good credit history and earn rewards points or cashback on your purchases. To answer your specific question, if you use your credit card to make purchases up to the limit of R5000, you will need to pay back at least the minimum payment required by your credit card issuer. This will depend on your credit card terms and conditions, but typically, the minimum payment is around 3-5% of the outstanding balance or a fixed amount, whichever is greater. However, it is always advisable to pay off the balance in full each month if you can to avoid paying high interest charges. Some of the daily offers for our South African Apple ios credit card users. 👇👇 shorturl.at/hnoHL
When you have financial discipline, they are a very great tool, however, without the discipline...wuuuu chile!They'll be your worst enemy 😅. Thank you for watching ❤️.
This is some legitimately great advice. Guys do not mess with credit cards if you do not have financial discipline. I’m on my second card now. First one was a complete mess, Oh My Goodness😭😭. Revolving credit will mess your life up. Start with a clothing store account. Test yourself there.
Absolutely 💯
But even clothing accounts are dangerous without financial discipline 😅. What we need to encourage more is financial discipline. I'm glad you managed to turn around your situation and learnt from your mistakes with your first credit card👌🏾👌🏾👌🏾.
Thank you so much for sharing. I’ve been delaying getting a credit card because I buy and love things too much. Now that I’m older and have been reading more about credit, I’m considering getting one. This video will be good advice for when that day come. ❤
Thank you so much for watching!❤️. I really do hope the tips shared here will help you once you decide to get a credit card😘
I'm the close friend whose son was turning 1 😍 and yes it's her son too😚😚😚
Ofcourse honey🥰
Welcome back😁 The older I get the more I have accepted that all financial products have their own specific target market. The discipline required with owning a credit card makes me think they are not meant for everyone hey😅
Thank you so much for watching❤️. True, self-awareness is the best tool to financial wellness😅
You speak highly of your bank.Which bank are you using?
Really?! I didn't see it that way😅. Well, this was not meant to be any promotion for any bank, but to answer you, the credit card I was referring to in this video is from the green bank. Note I also bank with 3 other banks, though, for different reasons.
Thanks for watching ❤️
Hey sis, first time getting a credit card. So they said I can opt for a debit order which will go on every month (3 % of what I use)… so now what if I don’t use anything on my credit card that month. Does the debit order still go off ,
Hey, like I recommended in the video, always pay your credit card debt in full every month if you use it. If you pay only 3% like they say, you'll ultimately pay over 20% per annum/year on your balance, and this nullifies all benefits of owning a credit card.
Hi there, I’m quite late but I’m thinking of getting a credit card. For this month I’d be using more than 30% of the amount but plan to pay it back at the beginning of Jan. Since it’s the first month of my card, would it look bad if I have a high utilisation even though I’m going to pay it back in less than 15 days?
Hi👋
If you pay your credit card debt in full within 15 days, as you say, it shouldn't negatively affect your credit score.
Remember, this is not financial advice.
Just to make sure I got this 100%:
So if I use 20% of my credit
Then
My bill comes out on January 22nd
And it says
My due date is February 18th
I then
pay the full balance on February 3rd
And then
Between February 3rd and February 16th, I make 15% more charges on my now paid off card
So
Do they report the 15% I have done after I paid on February 3rd or do I have till March 16ish to pay off this new 15% so it doesn't get reported or look bad on my credit history?
Hi Marcus, I have had this exact question when I first got a credit card, and upon asking my bank, they said the clause "up to 55 days interest free" means the interest free period could be less than 55 days and generally the interest free period for purchases starts on the date the purchase first appeared on your statement and ends on the due date for payment on that statement.
I don't know if this is bank specific or regulated by the NCR - please confirm with your bank. However, in my anecdotal experience (remember I'm not a financial advisor), I've tested this and worked with paying my credit card off completely every 30 days and curiously scrutinized my statement for 6 months and confirmed I was never charged interest. Using your example, I have made purchases in that curious period of the 3rd -16th Feb, after having paid off my 22nd Jan balance in full on 3rd Feb, not paid off the new purchases until 3rd March, and not charged interest in my 22nd Feb monthly statement although my purchases appear in this statement - making me assume I indeed have until 16th March to pay them off. NB: I have only done this test with my credit card from a bank and not a clothing account or any other type of unsecured credit.
Happy to discuss further, remember to confirm with your bank.
Thank you sis tlaly, does all of this also apply to eg. clothing credit cards?
I'm only 24 and don't wanna take out a credit card with my bank. I'm afraid i'll use it till max and get in dept cos i really lack discipline shem😆
Hi Rinae, thanks for watching ❤️. Credit cards are different from clothing acounts in the points I mentioned here except that they both help you build your credit score and you can manage both of them well by just paying off your full balance every month end. If you fear that with a credit card you'll max it, then you're likely to do the same thing with a clothing account. Rather work on your discipline. I would go for a credit card over a clothing account given the choice but discipline is very important 🙌🏾.
Hi
Pls help is it a disadvantage to use all the money in your credit card?
My limit is R5000 ....does this mean I need to pay the bank that R5000?
Hi Nthabiseng,
Yes, using all the money in your credit card negatively impacts your credit score. If your limit is R5000, try not to spend more than R1500 on your credit card.
Your limit is what the bank allows you to spend on your card with the expectation that you can and should pay back - it is calculated based on your affordability and/or income. If you have already used up your R5000, yes, you have to pay it back and always pay back any money owing on your credit card within 30-55 days. Know the terms and conditions for your specific credit card. If you just have a limit of R5000 but have not used your credit card, then you don't have to pay anything to the bank. The limit is just your total available balance.
Hope this helps, and keep watching to grow your knowledge. Please note that I am not a financial advisor, and this is not financial advice.
Using all the money available in your credit card can have disadvantages depending on your financial situation and payment habits. If you use your.
credit card for all your purchases and you don't have enough money to pay off the balance in full each month, you will likely end up paying interest charges on the remaining balance. Interest rates on credit cards can be high, and the longer it takes you to pay off the balance, the more interest you'll end up paying. This can quickly add up and make your purchases much more expensive than if you had paid in cash.
In South Africa, credit card issuers usually require you to pay at least the minimum payment on your outstanding balance each month. This is usually a small percentage of the total balance or a fixed amount, whichever is greater. If you only make the minimum payment, it will take you longer to pay off the balance, and you will end up paying more in interest charges.
If you use your credit card responsibly by paying off the balance in full each month, using your credit card can actually be advantageous, as it can help you build a good credit history and earn rewards points or cashback on your purchases.
To answer your specific question, if you use your credit card to make purchases up to the limit of R5000, you will need to pay back at least the minimum payment required by your credit card issuer. This will depend on your credit card terms and conditions, but typically, the minimum payment is around 3-5% of the outstanding balance or a fixed amount, whichever is greater. However, it is always advisable to pay off the balance in full each month if you can to avoid paying high interest charges.
Some of the daily offers for our South African Apple ios credit card users.
👇👇
shorturl.at/hnoHL
Really? Ive always had such a negative mentality towards credit cards, but i guess i just wasnt informed
When you have financial discipline, they are a very great tool, however, without the discipline...wuuuu chile!They'll be your worst enemy 😅. Thank you for watching ❤️.
100,000 credit card limit…wow lol
Yes😅