For those who face challenges in obtaining traditional credit cards due to a poor or non-existent credit history, there are viable alternatives.
These include prepaid, secured, and store cards.
Explores these options, highlighting specific card names, their features, benefits, and advantages.
Prepaid Cards
Prepaid cards are an excellent choice for those who want to avoid credit checks. They function similarly to debit cards but are not linked to a specific bank account. Instead, you load the card with a desired amount and use the funds as needed.
Capitec Global One Mastercard
Features:
- Can be reloaded with funds as needed and is accepted wherever traditional credit cards are accepted. Offers fraud protection.
Benefits and Advantages:
- No credit check required, ideal for budgeting, available to anyone, and in case of loss or theft, the impact is limited to the loaded balance.
Bidvest Bank World Currency Card
Features:
- Allows loading multiple foreign currencies, ideal for international travel. Can be reloaded online or in stores.
Benefits and Advantages:
- No credit check required, excellent for managing travel budgets, provides additional security while traveling, and is widely accepted worldwide.
ABSA Cash Send Card
Features:
- Can be reloaded via bank transfers or direct deposits. Accepted wherever Mastercard is accepted.
Benefits and Advantages:
- Offers a secure way to make transactions without a credit check, easy to obtain and use, and allows full control over spending.
Secured Cards
Secured cards, or credit cards with a security deposit, require a deposit that typically equals the credit limit. This deposit minimizes the risk for the card issuer, resulting in less stringent approval criteria.
Standard Bank Secured
Features:
- Requires a security deposit that sets the credit limit. Payment reports are sent to credit bureaus.
Benefits and Advantages:
- Lower risk for the issuer, facilitating approval, helps build or rebuild credit history, offers the same flexibility as a traditional credit card, and can be converted to an unsecured card after responsible use.
FNB Secured
Features:
- Requires a security deposit, with payments reported to credit bureaus. Can be used for online purchases and travel bookings.
Benefits and Advantages:
- Ideal for improving credit history, easier approval due to the deposit, offers additional security, and potential conversion to a traditional credit card.
African Bank Secured
Features:
- Requires a security deposit as collateral. Credit reports help in building history.
Benefits and Advantages:
- Easier approval due to the security deposit, excellent for rebuilding credit, offers flexibility of use like a regular credit card, and provides the possibility of conversion after responsible use.
Store Cards
Store cards are issued by large retail chains and may have less stringent approval requirements. These cards are generally used for purchases at the issuing stores and often offer exclusive discounts and promotions.
Edgars Store Card
Features:
- Primarily accepted at Edgars stores and affiliates. Offers exclusive discounts and promotions.
Benefits and Advantages:
- Easier approval for people with limited credit history, additional savings on purchases at Edgars stores, access to loyalty programs and rewards.
Jet Store Card
Features:
- Used at Jet stores and partners. Includes loyalty benefits and promotional offers.
Benefits and Advantages:
- Less stringent approval criteria, providing access to credit, exclusive discounts, and frequent promotions, loyalty rewards for regular customers.
Woolworths Store Card
Features:
- Accepted at Woolworths stores and partners. Offers discounts on selected products and access to exclusive promotions.
Benefits and Advantages:
- Easily approved for consumers with limited credit history, additional savings on purchases at Woolworths, and extra benefits through the loyalty program.
Prepaid, secured, and store cards offer viable solutions for those who face difficulties in obtaining traditional credit cards due to stringent credit checks. Each type of card meets different needs and offers unique advantages:
- Prepaid Cards: Perfect for budgeting and security, without the need for a credit check.
- Secured Cards: Excellent for building or rebuilding credit, with the potential for conversion to traditional cards.
- Store Cards: Ideal for frequent shoppers at specific stores, offering exclusive discounts and rewards.
By considering these alternatives, you can find an option that meets your financial needs and helps you manage your credit effectively.
Regardless of your credit history, these options provide access to important financial tools, promoting financial inclusion and responsible credit management.
