5 things you need to know about your credit card

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Not all debt is bad. In fact, credit can be a lifeline if managed correctly. Sanlam knows just how to work best with credit so that it’s helpful and not to your detriment.
Managed correctly, credit can be a lifeline when you need it most. But according to debt specialists Debt Rescue, 58% of South Africans struggle to meet their credit card payments each month. Stay on the right side of these stats with these tips from Sanlam Money Saver.
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1. Identify good vs. bad credit

‘Good credit is credit that you can afford and use to buy things that you need. Bad credit is credit that you can’t afford and you use it for things that you don’t need,’ says Lebogang Selibi from the National Credit Regulator. Using credit wisely includes unexpected issues with your car or a medical emergency and paying it back in time. A good credit rating will help when you want to apply for a car, home or business loan, or even a new cell phone contract.

2. Avoid hidden fees

So how do we promote responsible credit? The Sanlam Money Saver is the only credit card to add up to 5% of your spend to your savings as a cash-back bonus. Sanlam also keeps the fees as low as possible, at only R56/month, and offers up to 55 days interest free. What you see is what you get.

3. Choose a credit provider that doesn’t lure you with false promises

Here’s a reality check: 70 – 90% of loyalty credit card customers never reach the top tier levels required to enjoy advertised rewards. Enter the Sanlam Money Saver credit card: it guarantees up to 5% cash-back added to your savings, with no confusing points systems or caps limiting your bonus.

4. Be smart about who you shop with

When you shop at a Sanlam reward partner such as Edgars, 2.5% of your total spend will be added to your to your savings from Edgars, and another 2.5% from Sanlam, which means a total of 5% of your spend will be added to a dedicated savings account as cash-back benefit on your behalf, at no extra cost to you.

5. Know your credit score

Review your credit rating at least once a year to see your credit status (you’re entitled to one free report per year, per credit bureau). You’ll get a holistic view of your financial landscape. Your credit score is a good indication of the manageability of the various loans and credit facilities in your portfolio. Try TransUnion, Compuscan or Experian.

Find out more about the Sanlam Money Saver credit card by visiting www.moneysaver.cards. The Sanlam Money Saver is a Mastercard, so you can swipe anywhere.