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Newsflash: there is such a thing as good credit.

In all the noise about lending and spending out there, it’s easy to forget that credit cards, personal loans, vehicle and home loan finance can be a good thing; after-all, they all give you the ability to access funds you might not necessarily have had access to. Of course, with great ‘spending power’, comes great responsibility…

This is why it’s really important to remember that credit is afforded to you based on your credit profile at the time of your application. You have the ‘power’, but once that card is in your hands, it’s your responsibility to keep track of what you can afford, and to stick to your budget.

The trick is to ensure that you manage your credit, and keep a healthy credit record. This tells the credit lender that you can afford to pay back the funds which you’ve been given, as well as that you’re able to responsibly manage the credit given to you according to the terms and conditions set by the credit lender. Because your credit profile takes a view of all funds owed by you across the different products and credit lenders, when managed properly, credit can be the friend you need when you need it most.

Credit cards act as a revolving transactional facility, which simply means that you’re able to transact daily in this way, and reuse the funds you’ve paid back, provided your credit profile has not deteriorated.

Credit cards are also very versatile. They give you the ability to access funds via different means, such as when needing to purchase in shops, transfer funds via the internet to pay beneficiaries, do online shopping, or even access funds at an ATM. Across the globe, credit cards are one of the most preferred methods of payment because they’re so quick and easy to use when paying at till points.

To add to this, credit cards often also have a number of meaningful benefits for customers to enhance their shopping experience. These benefits can range from promotional discounts to automatic annual limit increases which can cater for growing lifestyle needs. In many cases, fees are also structured to make the credit card accessible and affordable. It’s good to do your homework on this to find the credit card offer that best suits your changing needs. Think about your daily transactional needs before making your decision. It’s all about what will work best for you.

Virgin Money South Africa (Pty) Ltd supported by Absa Bank Limited, Reg no 1986/004794/06
An Authorised Financial Services Provider Registered Credit Provider (NCRCP7)