Skip to content

Borrowing

Choosing a credit card

Choose a card you will pay in full. The rewards are a footnote. The cash-advance rate is a warning.

Reviewed 28 October 2026 by the WiT Money editorial team. This is general information, not a recommendation from a named adviser.

A credit card is a useful way to pay for things you have already budgeted, if the full statement is paid by the due date. Used that way, the interest-free period on purchases can make the card cheap. Used as a loan, the same card is an expensive revolving balance.

The minimum payment is the amount that keeps the account from defaulting. It is not the amount that pays the card off. The calculator shows how long a balance lasts at a payment you choose.

Fees and rewards

Put the annual or monthly fee next to the rewards you will actually use, in rand. If you would not buy the rewards with your own money, they are not a reason to hold the card. Interest wipes them out the first month you revolve a balance.

Cash and budget facilities

Drawing cash on a card usually starts interest immediately and adds a fee. A budget facility is another loan on the same piece of plastic. Neither one is the interest-free purchase.

Limits

A limit increase is not a raise. Accept it only if the full limit, in the wrong month, would still be survivable. Better, ignore the limit and use a number you chose.

Questions readers ask

Should I close a card I do not use?

A fee on an unused card is a waste. Closing it can also change your available credit, which is a bureau fact. If there is a fee and you do not use the card, closing it is usually the cleaner choice. Do not close it in the same week you need to apply for a bond without thinking about the timing.

Is a store card a credit card?

It is credit, often at a painful rate, usable only in that store. It is rarely the card to build a budget around.

Related

Sources

Page updated 28 October 2026. A source date is the day WiT Money checked that page, not a promise the institution has not changed it since.