Benefits of responsible credit card use

05 September 2011 Absa

And look out for exciting rugby benefits with the new Bok-branded credit card

With ‘Bok-fever’ gripping the country ahead of the September 9 kick-off of the Rugby World Cup, Absa today reminded customers that its recently-launched Springbok-branded credit card can help them save as the country gets behind the national team.

Officially named the Absa Springbok MasterCard® Credit Card, the card earns new customers 50% off a new Springbok rugby jersey and free membership to the Springbok Supporters Club for a year with access to a range of offers and privileges.

“The card also gives 1% cash back on all in-store purchases until the end of this year,” says Arrie Rautenbach, Managing Executive for Absa Card.

Existing credit card customers earn 30% off the rugby jersey and one year free membership to the Springbok Supporters Club.

Rautenbach also highlighted other benefits that are possible with responsible use of credit cards. In the current post-recessionary economy, household debt to disposable income stands at a staggering 77%. Coupled with high debt servicing costs and rising consumer prices, it is not surprising that consumers are constantly urged to reduce their levels of indebtedness.

Debt reduction certainly remains a vital necessity. “However, it is inaccurate to equate consumers’ debt burdens with credit card usage. In fact, there are a number of benefits to having a credit card that are often missed. These include affordability, convenience, safety and control,” states Rautenbach.

He adds: “Credit is only bad if it is not properly managed. Millions of our customers use credit cards responsibly and get to enjoy the convenience of card payment instruments on a daily basis. Credit cards are still one of the most common forms of payment. They can help balance cash-flow and reduce transaction costs. However, consumers should be wary about falling into the credit trap.”

There are no transaction fees when using your credit card for qualifying purchases and, if you settle your account in full before the repayment due date, you will not pay any interest on qualifying purchases. It is like the bank lending you the purchase price – interest free – for up to 57 days.

In addition, customers can make online shopping more secure with Verified by MasterCard SecureCode which gives you a unique PIN that ensures no-one else can use your credit card to shop online.

“Absa is a responsible lender. As with any line of credit, it is important to ensure that customers can afford the repayments. We have our customers’ best interests at heart and believe that credit cards - when used responsibly - are a perfect instrument to assist with day-to-day transactions and month-to-month debt management. Our new Springboks card is one such example providing great value, while allowing the customer to get behind and support their team,” concludes Rautenbach.

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