ABSA credit card Review 2021

Posted on Jan 3, 2021 by Staff Writer

Rateweb | South Africa

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ABSA Credit Card Summary

ABSA Credit Card is a card made for professionals, entrepreneurs and students with a constant source of income. To qualify for ABSA Credit Card you need to be above the age of 18, be resident in South Africa, have a good credit score and earn a minimum of R24,000.00 or more per annum. The card has a monthly service fee starting from R7.00 and interest rate of 18% per annum.

ABSA Credit Card Fees 2021

Fee DescriptionFlexi CoreGoldPremium
Monthly Account Fee14.0023.0059.00
Credit Facility Fee30.0030.0030.00
Cheque deposit60.0060.0060.00
Cash deposit: Branch 60.0060.0060.00
Cash deposit: ATM2.002.002.00
Cash Withdrawal: Branch75.0075.0075.00
Cash Withdrawal: ABSA ATM2.00 per 100.002.00 per 1002.00 per 100.00
Cash Withdrawal: Other ATMs6.00 + 2.00 per 100.006.00 + 2.00 per 100.006.00 + 2.00 per 100.00
Overseas ATM Cash Withdrawal75.0075.0075.00
Online and Mobile Cash Transfer10.0010.0010.00
#ZARZARZAR
ABSA credit card fees 2021

How does the ABSA Credit Card work?

The ABSA Credit Card allows account holders to get up to 57 interest-free days on purchases, excluding withdrawals, gambling transactions, and online transfers and purchases on fuel and budget plan.

Absa bank now prides itself on offering 4 types of credit card lending categories but, we will discuss 3 categories on this article.

The three credit card grouping that will be discussed in detail are credit cards for everyday use, exclusive credit cards and credit cards for students. Absa has tweaked things with their student credit cards. Now students can have access to credit for as little as R800.00 in required income per month. Not very demanding but a student will need to prove that they really do earn such amount.

Absa everyday use cards?

Absa personal loan

Absa has two everyday use cards a Flexi core and a gold credit card. Flexi core credit card is for those who are first time landers. Flexi Core credit card is easy to manage hence it is made for those with no credit score, building a credit score with this card will be much easier.

Flexi Core credit card is simple and comes with modern features that you would expect from a card, like making online transactions and buying using the app. The gold credit card standards are somehow a bit relaxed as nothing is complex, there is no private banker and no financial counseling. Gold credit card is your typical first-tier credit card and comes with limited services, although better in some ways when compared to other first-tier cards from other banks.

Let’s look at the features, rates, requirements and analyse the competitive advantages and disadvantages of the everyday use credit cards.

ABSA credit card

Flexi Core and Gold Credit card Features

  • Fixed monthly payments that ensure you pay more of your capital debt monthly and allow for easy budgeting
  • Helps you build a credit history
  • Up to 57 days interest-free
  • No transaction fees on purchases
  • Free Lost card protection
  • Automatic basic travel insurance
  • Bidvest Airport Lounge access at preferential rates, for gold credit card
  • Get R1,5 million Automatic basic cover* for a range of travel emergencies, only for gold credit card
  • As a Rewards member, you get cash back when you swipe with your gold credit card at our fuel and grocery partners,

Absa Credit Card Requirements

  • Monthly income of R2000.00 to R4000.00 for a Flexi core credit card
  • Monthly income of R4000.00 to R25,000.00 for a gold credit card
  • Must be 18 years or older
  • Proof of income required for the past three months
  • Proof of residence required
  • Must have a valid South African ID book or Smart card

Absa Bank Flexi Core and Gold Credit card Competitive Advantage?

Flexi Core card has the lowest minimum income requirement in South Africa compared to any credit card offered by the big 5 banks that are not for students.

The gold credit card has a better minimum income requirement compared to the FNB gold credit card and the Nedbank credit card. Nedbank gold credit card requires a minimum of R5000 and FNB a minimum of R7000 to get credit while Absa Bank gold credit card has a minimum requirement of R4000.00.

Both credit cards have lower monthly credit card service fees of R30 compared to the Nedbank credit card service fee of R45.00. The gold credit card has an R1,500,000.00 automatic basic travel life cover which is very high for a gold credit card.

Absa Bank Flexi Core and Gold Credit card Competitive Disadvantage

Compared to Capitec bank credit card, Absa Flexi Core and Gold Credit card charges for activity notifications while Capitec bank doesn’t. Absa Bank charges the same rate of R8.50 for returned payment charges and yet Capitec bank does not charge for returned payments.

Exclusive credit cards ?

Exclusive credit cards are for private banking, so if you want a dedicated private banker then you must consider getting one of the two exclusive credit cards.

Absa Bank has two exclusive credit cards namely premium banking credit card and private banking credit card. These are the top of the range credit cards from Absa Bank and are for professionals and high net individuals.

These cards give you access to private financial counselling whenever you need help to manage your financial affairs. If you are a very busy person then managing your finances may not be your number one priority hence you will need the services that come with private banking.

Let’s have a look at the features, rates, and requirements of premium and private banking credit cards. We will also look at the competitive advantages and disadvantages of both exclusive cards.

Features

  • A one-card solution: You can now access your savings or cheque account using your Premium Banking Credit Card for fast and convenient shopping
  • Basic travel insurance: Free automatic cover for a range of emergencies when you travel
  • Bidvest Airport Lounges: Travel in style with Bidvest Airport Lounge access across South Africa*
  • Purchase Protection: 90 days free insurance for theft and accidental damage on card purchases
  • Absa Rewards Programme: You can join Absa Rewards and earn up to 1.15% back in cash rewards,
  • MasterPass: Store all your debit and credit cards in one secure digital wallet for safer and faster shopping. Download MasterPassTM from Absa in the app store
  • Contactless: Your Premium credit card is also contactless. You can pay for goods or services up to the value of R200 anywhere you see the Contactless Payments symbol. To combat fraud you’ll occasionally be asked to enter your PIN
  • International acceptance
  • Unlimited access to Bidvest airport lounges in South Africa
  • Lost card protection for private banking credit card
  • Purchase protection for private banking credit card
  • Extended warranty
  • Ability to temporarily lock your card or transactions from your Absa banking App

Rates

  • 00 charge for monthly services fees on premium banking credit card
  • Payment notification R0.60
  • Returned payment charges at R8.50
  • R30 monthly credit facility fee

Requirements

  • Must earn a minimum gross income of R62, 500.00 for private banking credit card
  • Must have a good credit score
  • Must be 18 years or older
  • Proof of income required for the past three months
  • Proof of residence required
  • Must have a valid South African ID book or Smart card

Absa Bank premium and private banking credit card competitive advantage ?

You don’t need to earn much money to qualify for Absa private banking. From a salary of R25,000.00 or more, you can start your life in the private clients’ section with Absa Bank compared to a hefty R62,500.00 requirement from FNB.

Absa Bank premium and private banking credit card competitive disadvantage

Travel rewards are not earned from these cards. You need to have a separate account such as the Absa British airways to earn points when travelling or use your card to pay for car rental and hotel bookings.

From FNB you have all these benefits bundled in one credit card which will help you avoid unnecessary card fees and other card costs.

Credit card for students

Absa students’ credit card is simply designed for students. Not much money is required to own this credit card although it can be tough for students to make any income while studying. The minimum requirement for this credit card is R800 in gross income.

Gross income may income student allowances from Nsfas or bursary providers so there are no strict measures for this credit card. There are no monthly service fees and facility fees for this card and it is the only credit card from Absa whereby no service fees are charged.

Let’s look at the features, rates and requirements for the Absa credit card for students.

Absa student credit card Features

  • No monthly service fee
  • Helps you build a credit history
  • Accepted worldwide
  • Up to 57 days interest-free on purchases
  • Automatic basic travel insurance

Absa Student credit card rates

  • 0 monthly services fees
  • 0 monthly facility fees
  • Payment notification R0.60
  • Returned payment charges at R8.50

Absa student credit card requirements

  • Must earn R800 or more in Allowances or cash equivalents
  • Must be 18 years or older
  • Proof of income required for the past three months
  • Proof of residence required
  • Must have a valid South African ID book or Smart card

Absa student credit card competitive advantage

Absa has 0 facilities and service fees charges while Nedbank charges R7. 00 on the student credit card. Absa charges 1,15% on withdrawals for their student credit card and Nedbank charges 1,25% on their student credit card so the access of 0,10% from Nedbank cannot be ignored. You pay a minimum of 3% of the outstanding balance with Absa and 5% minimum outstanding debt with Nedbank for the same account. Absa charges 18% interest on credit while Nedbank charges 21% interest.

Absa student credit card competitive disadvantage

Compared to Nedbank students’ credit card, Absa has a low credit limit of R200.00 while Nedbank has a credit card limit of R500.00. This is a 150% difference on the credit limit for the same credit card offered from the 2 banks.

Absa Credit card application

You can use the following methods to make your Absa credit card application. Choose the card that you want, then use the following information to start your application.

  • Make sure that your credit score is good
  • Have you ID
  • Latest payslips if you are employed
  • Proof of allowances if you are a student
  • Be 18 years or older
  • Have your three months bank statement showing proof of salary or student allowances
  • If you are an Absa mobile app user, you can use the app to start your application or
  • Start your application online or
  • Alternatively, visit your nearest Absa branch with all the necessary documents to start your application.

 

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