5 THINGS YOU NEED TO KNOW ABOUT YOUR CREDIT CARD

Managed correctly, credit can be a lifeline when you need it most. But according to debt specialists Debt Rescue, 58% of South Africans struggle to pay their credit card payments each month. How do you stay on the right side of these stats? Start with these steps.

---

1. IDENTIFY GOOD VS. BAD CREDIT
“Good credit is credit that you can afford and use to buy things that you need. Bad credit is credit that you can’t afford and you use it for things that you don’t need,” says Lebogang Selibi from the National Credit Regulator. An example of using credit wisely is when you have an unexpected issue with your car or a medical emergency, and you use credit to cover the costs, committing to paying back the monthly instalments on time.

Having credit can be very useful. A good credit rating will help when you want to apply for a car, home or business loan, or even a new cell phone contract.

2. AVOID HIDDEN FEES
“We recognise that credit is a fact of life – so how do we promote responsible credit? That was what we wanted to do with the new Sanlam Money Saver credit card,” explains Francois Uys, head of digital, marketing and communications at Sanlam Reality (www.sanlamreality.co.za), the loyalty and rewards programme for the Sanlam Group. “The Sanlam Money Saver is the only credit card to add up to 5% of your spend to your savings as a Cash-back Bonus. We’re also keeping the fees as low as possible, at only R56/month, and offering up to 55 days’ interest-free.” What you see is what you get.

3. CHOOSE A CREDIT PROVIDER THAT DOESN’T LURE YOU WITH FALSE PROMISES
We’ve all seen them – the adverts promising a million-percent cash-back whenever you swipe. But here’s the truth: 70-90% of loyalty credit card customers never reach the top tier levels required to enjoy these advertised rewards.

“Our research shows that most people within this 70-90% majority will only ever enjoy 0.35-1.75% in cash-back, despite what they were promised,” says Uys.

It’s why the new Sanlam Money Saver credit card is such a great offer: it guarantees up to 5% cash-back added to your savings, regardless of any kind of points level or membership status. Simple!

4. BE SMART ABOUT WHO YOU SHOP WITH
“If you shop at one of Sanlam’s Reward Partners like Jet, they will contribute 2.5% of your total spend to your savings, and Sanlam will contribute a further 2.5%. It means that you’ll get 5% of your spend added to a dedicated savings account as cash-back on your behalf, at no extra cost to you,” explains Uys.



5. KNOW YOUR CREDIT SCORE
View your credit report at least once a year to see your credit status (you’re entitled to one free report per year, per credit bureau). You’ll get a holistic view of your financial landscape. Your credit score is a good indication of the manageability of the various loans and credit facilities in your portfolio. Try TransUnion, Compuscan or Experian.



Find out more about the Sanlam Money Saver credit card by visiting www.moneysaver.cards. The Sanlam Money Saver is a Mastercard, so you can swipe anywhere.