C
Credit
Credit Card
A revolving credit facility issued by a bank that allows you to make purchases up to a set credit limit and pay the balance monthly. You can pay the minimum amount, the full balance, or anything in between. Interest — typically 18% to 22% per annum in South Africa — is charged on any unpaid balance carried over to the next month.
Usage Examples
"She uses her credit card for monthly groceries and pays the full balance each month to avoid interest charges."
"Paying only the minimum on a R20,000 credit card balance at 21% interest could take over 10 years to clear."
"A credit card can help build your credit score if used responsibly — keep your utilisation below 30% of the limit."