Credit Cards

Capitec Credit Card Review 2022

Published by
Staff Writer

Capitec Bank is arguably South Africa’s fastest-growing bank. It had over 13 million clients as of November 2019, with the company noting that it registered 200 000 clients every month in 2019. Capitec bank accepts on average 14 000 new credit card accounts in a month. This is a high acceptance rate considering the current economic climate.

It is not a surprise that Capitec Bank has so many accounts that they manage. In 2015 Capitec bank only had 6 Million registered accounts. The company growth rate is so high and you might wonder why. The answer is in their mission statement: ‘commitment to making banking affordable, easy to access and delivered through a personalised experience’.

The message is strong and Capitec bank is doing many things right to achieve this.

Capitec Credit Card Summary

Capitec Credit Card is a card made for individuals with a sustainable source of income. To qualify for Capitec Credit Card you need to be above the age of 18, be gainfully employed and earn a minimum of R36000.00 or more per annum. This card has a monthly service fee of R40.00 and interest rate between 7.00% to 17.50% per annum.

Capitec Black Card

Capitec Black Card is the same card as the Credit Card. The only difference is the colour. With the black card, the client earns 2.25% per year on a positive balance, gets up to 55 days interest-free period, a credit limit of up to R250000.00 and pay a personalised interest rate from 7.00% per year

In actual fact, Capitec Bank changed the credit card colour to black, which is why it now known as the the Capitec Black Card. The qualifying criteria is still the same.

For the purposes of this article we will use the names interchangeable.

Why is Capitec bank accepting so many credit card applications in these hard times?

The possibilities are endless. We called in at Capitec as clients of the bank, we got through to a salesperson in the Credit card department who said Capitec bank offers low interest on credit. He added that one gets to receive interest on a positive balance.

We thus, concluded that Capitec Bank is doing so well in that front compared to other banks.

Let us have a look at Capitec credit card and see what they offer.

Benefits of Capitec Black Card

  • Get 2.25% on the positive balance
  • Credit limit of up to R250,000.00
  • Your credit is personalized depending on credit score and history, and your affordability
  • Interest rate from 7.00%
  • 00 currency conversion charges when you shop with your card overseas
  • Get up to 55 days of credit period after purchase
  • Get access to all your cards
  • Free travel basic insurance
  • Optional credit insurance

Requirements for Capitec Bank Credit Card

  • Must be 18 years or old and have a South African ID
  • Latest payslip
  • Latest bank statement stamped to show your salary earnings for the latest 3 months

Is the Capitec Black Card for you?

This card is designed for anyone who wants a credit card including travellers and those who like entertainment. The credit card is affordable but may not be ideal for someone who travels too much.

Capitec bank doesn’t have any loyalty or bonus points when you use the card to buy your travel tickets, hotel bookings, car rental etc. It may not seem like a big deal if you don’t travel much but travelling more than 8000 miles in a year and being rewarded for your travel can change everything.

Hiring a car and booking a hotel overseas or locally should be rewarded and for Capitec bank to ignore this isn’t rewarding at all.

As long as you are employed and earn R3000 or more, you can get a Capitec Black Card, though this is dependent on your affordability and credit risk.

High earners with an excellent credit score are bound to be accepted for a higher amount of credit which could be up to R250,000.00. Your credit score is important when applying for any form of credit so it is also important when applying for a Capitec credit card.

Your application for credit can be rejected if you are viewed as a high credit risk.

Someone with no credit score can get credit from Capitec Bank. In one case, Tebogo a long time Capitec client applied for a credit card for the first time and had never taken credit before.

He first checked his credit report and found that he didn’t have any credit score. Then he took a chance and went to apply for this credit card and submitted all the relevant documents and to his shock, he was approved.

He wasn’t approved for the amount of credit he hoped for but he still got credit which was slightly less. In this case, Tebogo received credit because he can afford it not because his credit score was low or non-existence.

People fall into traps hearing a story like Tebogo’s and think it was because of a low credit score, but Tebogo is yet to show that he is capable of paying his debts.

Capitec Credit Card Fees 2022

Details

Fee

Initiation Fee

R100.00

Monthly Fee

R40.00

Interest Rate

7% – 17.50%

ATM Withdrawal

R9.00 for every R1000.00

Capitec Credit Card Fees 2022

This card’s interest rate is determined by your credit score. Your interest rate % will be higher if your credit risk is high. When it comes to interest rate percentages, it appears that your credit score is the most important factor in determining how much interest you will have to pay.

Maintain a strong credit history in order to keep the low-interest rate. A low interest rate would greatly assist you in repaying your loan. The 9.5 percent interest rate differential should be used and should not be subjected to a higher interest rate. For example, if you take up a credit of R250,000.00, the interest paid in one year will be R24,375.00 for someone with great credit and a 9.75% interest rate.

A high-risk credit holder, on the other hand, will pay R50,625.00 on a 20,25 percent interest rate. The money you will need to pay for a low credit score is simply too large to ignore, with a difference of R26,250.00 when comparing both interest rates. You can avoid interest rates by taking advantage of the 55-day grace period.

Competitive Advantages

Capitec Bank has the lowest first-tier credit card minimum income requirement when compared to Standard Bank, Absa, FNB, and Nedbank. The national minimum wage is R3500.00 per month, which could explain why Capitec Bank is growing so rapidly in comparison to its competitors. Their minimal income criterion is R3000.00, which is less than the national salary, thus theoretically, every working person can afford it.

Competitive Disadvantages

Capitec bank offers one credit card solution to all its client and this rather not a standard in the banking industry. The private bank is a must for some clients and they are definitely having a cry about this credit card.

Nathan Mena a Capitec credit cardholder voiced that he is looking forward to Capitec bank to introduce private banking.

He added that the waiting has been for so long and he anticipated that this was to be done sooner rather than later. When asked why he is still with the bank he said, “I don’t get calls from a private banker or have a private banking card but Capitec has low interest on their credit card and I get the same amount of credit like private banking”.

It is probable that Capitec Bank is looking forward to introducing private banking and other types of credit cards. Capitec bank doesn’t have any competitive reward system for credit card users.

For travellers, Standard bank has Diners Club card, and Nedbank has its American Express card while Capitec doesn’t have any card that offers rewards for travelling.

It has become a norm that hotel bookings, car rentals, and flight booking have bonus discounts /points yet Capitec bank hasn’t incorporated such for their credit card.

Capitec Black Card Requirements

  • 3 months payslips
  • ID copy
  • R3000.00 monthly income

FAQ

How do I pay Capitec credit card?

With the Capitec credit card, you are given 55 days credit period to pay off your debt. It is best to pay off your credit well before the due dates. To pay the credit you can use the Capitec App which is very easy and fast to use.

How to close Capitec credit card?

If you need to close your Capitec credit card, you can easily do so by using the Capitec mobile app. you can dial(*120*3279#) and follow the given instructions. You can also use internet banking or call them immediately to close your credit card.

Where can l apply for Capitec credit card ?

Apply for your credit card at your nearest Capitec Bank branch or Apply online at or If you have the app you can apply on the app with your profile

Can you get a Capitec Credit Card if you are blacklisted

Yes, to qualify for a capitec credit card you need to earn at least R3000.00 per month, it does not matter if you are blacklisted or not. However, your credit profile will determine how much credit you are eligible for. If you are blacklisted you will probably be eligible of significantly low amount of credit.

Check our article on 7 genius ways to improve your credit score

 

Staff Writer

Published by
Staff Writer