How do I apply for a Visa Discovery Card?

• You can apply for your Discovery Card telephonically by calling 0860 11 CARD (2273).
• Discovery will check your real-time credit rating and send you a quote. This quote will tell you which Discovery Card you qualify for, how much your fees are, and what your credit limit is. Please note that all applications for a Discovery Card are subject to affordability and credit assessments.
• You can accept the quote you receive by signing and returning it by fax. To this document you must also attach a proof of income and a copy of your identification document.
• You will then receive you Discovery Card (within 14 days after accepting the quote) and be able to use the Visa Discovery Card benefits for South Africans. Once you have received the card, contact Discovery to let them know.
• Two weeks after receiving the card you will get a PIN number, allowing you to withdraw cash from your Discovery Card.

With a Discovery Card, you can get cash back when you shop at the stores listed on the comprehensive network of partner businesses. The amount of the cash back depends on your Vitality Drive status, your Vitality status (or both), and the amount you spend at the partner store within the billing cycle.

What are the Discovery Card partner stores?

• Altech Autopage
• Altech Netstar
• @home
• Reggies
• ToysRUs
• Cape Union Mart
• Exclusive Books
• Frasers
• Look & Listen
• Nando’s
• Pick n Pay
• Tiger Wheel and Tyre
• Stuttafords
• The Pro Shop
• Totalsports

Cash back amounts will amount to different savings depending on how long you have been a member and the type of Discovery Card you have (excluding Pick n Pay and Tiger Wheel & Tyre):

• If you have been on Vitality for less than 3 years, you are entitled to: 10% savings on a blue, bronze, silver or gold card.
• If you have been on Vitality for 3 to 5 years, you are entitled to: 10 % savings on blue; 11% savings on bronze; 12% savings on silver; 13% savings on gold; and 15% savings on diamond.
• If you have been on Vitality for more than 5 years, blue cards will be rewarded with 10% savings; 11% savings on bronze; 13% savings on silver, 15% savings on gold, and 20% savings on diamond.

The fine print

• The maximum amount of discount you can get at these partner stores is limited to 30% of your total spendage on your Discovery Card within that statement period.
• The total cash back amount is calculated with a limit of R10 000 spending at any of the Discovery Card partner stores.
• You won’t get cash back when paying in-store accounts or to make third party payments such as telephone accounts. This applies to partner stores, as well as Pick n Pay clothing, Pick n Pay liquor, Pick n Pay pharmacies and Pick n Pay express stores. These transactions do, however, contribute to your total spend on you Discovery Card.

To find out if you are eligible for a Discovery Card and can take advantage of some of the great benefits of using it, contact Discovery Health or visit their website to find out more.

To simplify its banking solutions, Capitec uses what it known as its “Global one facility” , an all-inclusive banking solution that means you don’t have to sweat over which account type you choose. When Capitec introduces its credit card, its Global One system will still apply. The Global One account is the only transaction account offered by Capitec, which does not categorize clients in accordance with their income levels. The limitations of this account is that Capitec does not offer an overdraft facility, a cheque book, or a credit card… yet.

Capitec plans to introduce a credit card in 2012. In the meantime, however, account holders are able to link a Capitec account to a credit card provided by another bank or financial services provider. The amount owing on the credit card account can be paid via internet banking (which is a free service provided by Capitec). All you need to do is make your credit card account a beneficiary, and no matter how much money you transfer, the transaction will cost you R2.75.

Why Capitec?

In a recent survey conducted by the Solidarity Research Institute, it was found that Capitec bank offers the simplest products as well as the lowest bank charges in the country. The survey compared 5 South African Banks in terms of the costs of personal transaction accounts, comparing charges levied by the four largest retail banks (First National Bank, ABSA, Nedbank and Standard Bank) as well as Capitec Bank. Capitec was the cheapest, with the most expensive being ABSA. The second cheapest was FNB, followed by Nedbank and Standard Bank being the second most expensive. Additionally, Capitec’s fees have not been changes since 2010, whereas all four of the other banks increased their fees in 2011.

Debit card transactions with Capitec are fee, and the fees for withdrawing from ATMs are also lower than those of other banks. With free debit transactions, this also means that you can draw money from various retail stores at no charge. At a Capitec ATM, the fixed withdrawal fee is R3.75, regardless of the amount that is drawn. At another bank’s ATM the withdrawal fee is R7. In comparison, an ABSA account holder will be charged R9 to draw R500 form an ABSA ATM. This means that a Capitec account holder will be charged less at an ABSA ATM than an actual ABSA client. Capitec also has the lowest penalty fee (incurred if a debit order fails due to insufficient funds) of R3.75.

Another benefit of choosing a Capitec account is that you can earn interest on the money in your account; balances of over R10 000 will receive 4.75% interest and balances under R10 000 receive 6% interest. The interest is calculated on a daily basis and is capitalized monthly. The interest rates on Capitec current accounts are actually higher than those on savings accounts offered by other banks. The interest earned each month can be sufficient to cover all the bank charges incurred that month.

Capitec bank was also recognized at the annual Ask Africa Orange Index Awards as the overall winner, based on a six month-long survey representing the opinion of 10 000 consumers. Capitec won over almost 100 other brands spread across 18 different industries.

With all these benefits of being a Capitec bank client, many people in South Africa eagerly await the introduction of Capitec credit cards.

Nowadays, not many businesses will provide you with any kind of loan or financing without an indication that you have a good credit record. This is why it is important to use a credit card or other such credit-type payment system over time so that you can develop a credit history and show that you are a good (or bad!) credit holder.

Tips to build credit using a credit card 

• You only need to have one type of credit card to build a credit history; you don’t need to have multiple credit cards from different places. A credit card can be a credit card from a bank, a petrol card, store credit card, or any other kind of card that allows you to make purchases on credit. In fact, having too many credit cards does not look good on your credit record and if you have too many cards to pay off every month you may not be able to make all the payments in full. This not only reflects badly on your credit report, but also means that you will be paying more on credit interest every month.
• Have a credit limit on your credit cards. You can request for your bank to put a limit on the amount of money you can spend on your credit card each month.
• When you use a credit card to build credit, you are essentially showing that you can be responsible with the money lent to you and are good about paying back the full amount every month. The most important thing to do is to pay your debts in full and on time every month without fail. If you set yourself budgeted credit limits, this shouldn’t be a problem.
• Never buy something on credit that you couldn’t pay cash for. This is a sure way to prevent you from accruing debts you struggle to pay.

The credit catch-22

Without a credit history, it can be difficult to get your first credit card because lenders want to know that you are a good credit holder; so if you don’t have credit already, who will give it to you? In situations when you don’t’ have a previous credit history, lenders will have to look at other factors to decide whether or not lending you money will be a risk to them. This includes:

• Your employment history: lenders will look at your ability to hold a steady job. If you have has a steady job for a long time it means that your income is more regular, allowing you to budget for credit purchases.
• Your bank account history will also show how you spend your money, how much money you have to spend every month, and how regular you are with payments.
• Lenders may also look at your history of residence; it is better to have stable residence as this means that your rent or bond payments should stay stable. If you own a home this could also work in your favour as the lender can see that you have some collateral in case of non-payments.
• Having utility bills such as gas, water and electricity in your name shows that you are accustomed to paying bills every month.

To get your first credit card, first try applying at the bank where you have a savings or checking account. They will be able to assess your financial history with them and decide if they would like to grant you a credit card or not. Another option is department stores, which are often all too happy to sign you up for a credit account at their store; just be wary of high interest rates if you fail to pay on time!

Which stores offer credit cards?

These days, most clothing stores will be more than happy to get you sign on the dotted line to open an account. In fact, they often offer various bonuses and rewards for doing so, such as getting money off your next purchase or being offered a free gift.

Some of the major stores where you can get your goods on credit are (to name but a few):

• Truworths
• Edgars
• Legit
• Mr Price
• Jet
• Woolworths
• Miladys
• Foschini
• Stuttafords

To find out if your favourite clothing store offers a credit card or account system, just give them a call or enquire within when you visit there next.

Resist the row and rows of clothes

Having a clothing store credit card sounds ideal, but you need to keep temptation at bay because many clothing chain stores charge high interest rates on your credit purchases. Particularly in the current harsh economic climate, many people are cash-strapped and resort to buying on credit. However, this is only prolonging the problem; in fact, it actually makes it worse. Buy now-pay later also means buy now-pay more.

On a 6 month payment plan, there is usually no interest charged unless the customer falls behind on the payment. In this case, interest may be levied at around 30% to 35%. On a 12 month payment plan the interest is charged at 2.66%, amounting to 30% to 35% per year. But if you default on payments on a 12 month payment scheme, you will be charged extra interest of about 30% to 35% per year. This means that you will be paying interest on interest, so if you choose to make use of a payment plan make sure that you can afford the monthly payments so that you don’t slide even deeper into the red.

Truworths claims to have the lowest interests among other major stores. Truworths has a 6 month account without interest, the store as well as loner payment plans of 12, 18, or 24 months on which an interest rate of 2% per month is charged, no matter if it is a 12,18, or 24 month plan. This works out to 26.5% per year.

Hints and Tips of being a savvy shopper

• At most clothing stores, you have the option of a 6 month account offered interest-free or choose an extended payment plan of 12 to 24 months for which you will be charged interest. It is in your…well… interest to stick to the 6 month payment plan to avoid running up a high tab of interest on your credit purchases.
• Beware of other fees – most department stores also charge you a monthly fee as lost card protection. There may also be other fees such as club membership fees or subscription fees for a monthly magazine. These costs may be optional, so be sure to opt out in case you can avoid paying these costs.
• The interest rates charged by the banks fluctuates dependant on the current interest rates in to broader economic sphere, so beware that you could be charge more on what is already owing in your account.

It’s not all doom and gloom in the world of clothing store credit cards. If you are a disciplined card holder, having an account at a clothing store can help you to get a good credit record. If you buy on account but pay instalments regularly you will be doing your credit records a favour by showing that you are a responsible credit holder.

The second kind of Internet credit card fraud in S.A is that of software and devises that are used to record your credit card details.  This kind of software is called spyware and operates by recording the strokes of the keys used, or screenshots of whatever you do on your computer.  This kind of spyware however can be thwarted by means of anti-spyware software being installed on your computer.

The third kind of Internet credit card fraud is through emails that are sent to individuals claiming to be from their credit card service provider and asking you to supply them with all of your details.  This is known as a phisihing fraud.

There are however ways through which you can protect yourself from fraudulent activities online.

1. Think of credit cards as cash.  You would not walk around with thousands of rands in your wallet for fear of it being stolen and therefore you should treat your credit card like that.  Therefore one suggestion is to have a credit card that you use specifically to do online purchases with and which has a lower credit limit than your other credit cards.
2. Never give out your credit card information to people that email you requesting it.  Your bank will never ask you to supply your credit card information in an email.
3. Verify transactions on your credit card statement whenever you get it.  If there are ever any transactions that you are unsure of, contact your bank immediately and raise a red flag.
4. Do not give your credit card to others to use.  This may result in them purchasing goods off sites that you are not aware of and that may not be secure.
5. Purchase only from reputable online stores.

Credit card fraud can happen in other ways too offline. One of the most popular credit card fraudulent activities that occur is via card skimming.  This can occur at atms, via card machines in restaurants in stores and in so many other ways.  It is therefore essential that you know where your card is at all times.  Should you have to give your card to anyone at anytime, make sure that you can see your card and that no one takes your card away from you.

With the advent of portable card machines, this is somewhat reduced however you still need to be cautious. It is also essential that you do not give anyone your pin for your credit card. This applies for both online and offline as should you give someone your pin and they remember or write down your card number, they will have access to all of the credit you have available through that specific card. No one wants to find that they have had all of the money used on their credit cards. So keep yourself protected by following the steps provided above and always being cautious.

This has also resulted in it being one of the most loved stores in South Africa and this in turn means that you can never go wrong with a gift card from Woolies as it is affectionately known.

One of the great things about Woolworths gift card vouchers is that they can be used for anything in the shop, whether it be for some delicious food from their food market, or to buy something for the home. So if the person you are buying for a person that is very fussy and you are not sure of what to get them, then these gift cards offer the perfect solution.

If the person you are buying for is regular at Woolies, then they may be the owner of a Woolworths store card. This store card offers great discounts in nearly every section of the store, some even amounting to 30 or 40 percent off. So if you combine this discount with the voucher that you be given or are giving to someone else, then it really does offer the customer sensational value for money.

With that said, lets take a look at what exactly is on offer in the Woolworths stores.

1. Homeware

Woolworths has become a top contender in the homeware market as they offer fantastic products are reasonable prices. From crockery, to bedding, you can be sure to find something that will inspire you whenever you use it.

What is more is that Woolworths realises that not everyone has the same taste and therefore offers a wide range of products to meet every home owners unique style. In addition to this, Woolworths understands that different seasons call for different types of home accessories, so they offer a range of summer and winter products that are in line with the latest trends for the season.

2. Beauty and Fragrance

This is a relatively new addition to the Woolworths offering. Traditionally, Woolies offered a range of bath soaps and body washes, however they realised that they were losing customers to competitors such as Edgars Red Square. As a result, they developed a range of beauty products to meet the growing demand as well as started bringing in name brands such as Clarins and Decleor. This means that your loved one can now even use their gift cards to buy their favourite fragrances and beauty products.

3. Shoes and Accessories

Woolworths was known before has having really old fashioned shoes, however through many customer surveys they found the errors in their way and have started bringing in a wider range of shoes that will meet the needs of any occasion. From pumps, to beautiful high heels, Woolworths have definitely improved the quality of shoes that they now sell. Their accessories have also improved greatly and some of the brands that are now offered in store such as Trenery have a personalised range of accessories for their customers.

4. Fashion brands

Woolworths realised that they needed to cater to a wider market and have introduced a number of brands to meet this need. These brands include Trenery, Country Road, Studio W. and r.e. These brands offer some fantastic quality products, however these products are a little bit pricier than the Woolworths brands.

Well you do not have to imagine any more, if you are a Discovery Health member and you have signed up for their Vitality programme, you can start saving and being rewarded today. What is even better is that the healthier you are, the more rewards you can receive. So now you have a reason (excuse) to actually go to the gym as you get rewards based on your Vitality status, your VitalityDrive TM status, or both. And to top it all off, in addition to getting discounts and rewards, you can get cash back – for example, PicknPay offers Vitality Health/Vitality Drive members the opportunity to get as much as 10% cash back.

This concept has revolutionised the insurance industry in South Africa as Discovery has taken the grudge out of these purchases by means of the Visa Discovery credit card, as well as other offerings. They have realised that consumers no longer want to be told what they want but rather have their desire and needs heard. It is because of this that Vitality have developed products that their consumers actually want to incorporate into their lives. Who would have thought that an insurance company would think like that?

The best thing about all of this is that you can manage your account online and even apply online. No longer will you have to sit for hours in a store trying to figure out which forms are for which product and then having the store assistance lose your application all together. Vitality has developed three application processes which you can choose from. Firstly you can call the call centre at 0860 11 CARD (2273) and complete your application over the phone. Alternatively you can request that a qualified employee call you back by simply clicking a button on their website at www.discovery.co.za. Should however prefer to fill in the information yourself and fax it through to them, you can do this as well by downloading their application forms online and then faxing them to 011 539 2509. Should you want to email the application rather than one of the above mentioned application processes, you can email cardsales@discovery.co.za. It really is that simple to get connected to a world of reward and privileges.

After reading the above, I hope you are now thinking to yourself -What exactly can I get if I join? Well here it goes (the list is quite long so just bear with me):

• Shop and Save: This means that in the selected partner stores (all 24 million of them), you are entitled to discounts depending on your status at Discovery. For example, Blue members (the lowest category members) are offered a 10% discount. However should you be a Diamond member whereby you can earn up to 20% cash refunds. Shopping partners include: Stuttafords, PicknPay, Altech Autopage, Exclusive Books, and Total Sports. This means that there is a wide range of discounts to be had. The only downfall is that your maximum discountable spend at a partner store is limited to 30% of your total Discovery Card spend in a statement period. Your cash back is also calculated on a limit of R10 000 spend at the partner stores. But these seem minor in comparison to the rewards that they have to offer you.
• Travel and Save: If you use one of the Discovery Card travel partners you can not only receive free travel insurance, but you can also obtain cash back as well as the lowest advertised tour rates available. This is based on you Vitality status with Diamond status members receiving up to 22% off of their purchases with the travel partners.

All in all, Vitality is trying to show South African’s that it actually pays to be healthy and the  Visa Discovery Credit Card is further facilitating this notion. So why not become part of a new and better lifestyle and reap the rewards as you go.

With that out of the way, let’s look at the benefits of credit card ownership and what it can actually do for you. Push all negativity aside for a moment and have an open mind. Then make a conclusion. Using a credit card can a will give you a very good credit history. Having a good credit history using a credit card can and will increase your chances of receiving a student loan, renting a house, buying a car, getting a job, and eventually, buying a house. There are more advantages of owning a credit card, and these are: you get cash back and you will also find that this card will be very helpful in emergencies. It is convenient to own one. You do not have to carry around money anymore. The card will also enhance your independence and personal responsibility.

If you are still not sure if owning a credit card is such a good idea, the doubt only comes from how long it will last before you start spending irresponsibly. There are many benefits of credit card ownership, and all the other benefits not stated here are with the responsible person that owns one.

This means that the Truworths clothing accounts are tailor made to your needs. This is especially helpful for those of you who have started your first job and are looking for funding for a much needed work wardrobe. Truworths offers can help you get your foot in the door, dressed in style. This means that there is no need to borrow your mothers old fashioned work clothes that don’t fit exactly right, but rather you can make a great first impression at your new job.

For those of you who cannot apply online, then you can fill in an application form in store and you will be awarded credit instantly should you comply with the terms and conditions. Along with the instant credit, for joining you receive fashion vouchers to help you on your way to the perfect wardrobe. For those of you who are looking to open an account at a clothing store and are unsure about where to get one then why not visit your nearest Truworths store today or apply online. This will open the door to great style and quality at affordable prices. For those of you who are just starting out and are looking to make a fantastic first impression, then you should definitely open a clothing account and get your card to start shopping.

Are you blacklisted? Get finance and credit cards even with bad debt and rebuild your bad credit history. If you keep your payments up to date and maintain your account balances, this will improve your credit history and will keep you in better standing with any future credit providers should you need them. Getting a credit card even though you have bad debt or are black listed may seem like a ridiculous idea as you are in enough debt as it stands but without them, you may never be able to regain a good credit history.

Obtaining credit cards and loans whilst having a bad credit rating is often referred to as unsecured loans and come with a warning question: is it worth getting in to more debt to pay off your current debt? If your answer is yes then it is imperative to conduct a thorough search of the loans and credit cards on offer in order to find the best solution for you. Some website even have pages where you can submit your details and see if you are a candidate for a loan. With this is mind the new question to be asked is: Why worry if you have a poor financial history? Get finance and credit cards even with bad credit.