Pros of Using Credit Cards
Global Acceptance: Credit cards are widely accepted by merchants worldwide, making them ideal for international travel and online purchases1.
Building Credit History: Using a credit card responsibly helps build and improve your credit score, which is crucial for future loan applications.
Rewards and Benefits: Many credit cards offer rewards such as cashback, points, or travel miles, along with additional benefits like extended warranties and travel insurance.
Purchase Protection: Credit cards often include fraud protection and purchase insurance, providing peace of mind when making transactions.
Emergency Fund: A credit card can serve as an emergency fund for unexpected expenses, offering flexibility in financial emergencies.
Cons of Using Credit Cards
High Interest Rates: If not paid off promptly, credit card balances can accumulate high interest, leading to significant debt.
Risk of Overspending: The ease of use can lead to overspending, especially if you don't keep track of your purchases.
Fees and Charges: Credit cards may come with annual fees, late payment fees, and charges for exceeding the credit limit.
Credit Score Impact: Misusing credit cards or applying for too many can negatively affect your credit score.
Solutions to Common Problems
Managing High Interest Rates
Pay Off Balances Promptly: Ensure you pay your full balance before the due date to avoid interest charges.
Choose Cards with Lower Rates: Opt for credit cards offering lower interest rates or longer interest-free periods, such as those providing up to 60 days interest-free.
Avoiding Overspending
Set Budgets: Keep track of your spending and set budgets to avoid exceeding your credit limit.
Use Budgeting Apps: Utilize apps that help monitor your credit card usage and alert you when nearing your limit.
Minimizing Fees
Select Cards with Low Fees: Choose credit cards with minimal or no annual fees.
Avoid Late Payments: Pay your bills on time to avoid late payment fees.
Maintaining a Healthy Credit Score
Limit Credit Card Applications: Only apply for credit cards when necessary to avoid negatively impacting your credit score.
Pay Bills on Time: Consistently pay your credit card bills on time to demonstrate responsible credit behaviour.
Choosing the Right Credit Card
When selecting a credit card, consider the following factors:
Interest Rates: Look for cards offering personalized interest rates based on your financial profile.
Rewards Programs: Opt for cards with rewards that align with your spending habits, such as cashback on groceries or fuel.
Credit Limits: Ensure the credit limit is manageable and aligned with your financial situation.
Credit cards can be a valuable financial tool for South Africans when used wisely. By understanding the pros and cons, managing your spending, and choosing the right card for your needs, you can enjoy the benefits while avoiding potential pitfalls. Always prioritize responsible credit behaviour to maintain a healthy financial profile.
Questions after the interview:
At the end of an interview there is usually an opportunity where you can ask any questions you might have. This is a great opportunity to show the interviewer that you are interested in the position as well as the company. It is a good idea to prepare a few questions before the interview – this can be done while you are doing research on the company.
Your questions should show the interviewer that you are a good candidate for the position. Try and avoid questions that are based on your personal needs and preferences, for instance:
- How much leave will I get in a year?
- Will I be considered for promotion in my first year?
- When will I get an increase?
- What time can I leave in the afternoon?
These questions are inappropriate at this stage and will probably raise concerns on the side of the interviewer. Should you be the successful candidate then all these questions will be answered in your letter of appointment so don’t waste this opportunity by asking these basic questions.
If the position is an entry level job or very junior then you are welcome to ask questions in line with the position, for instance:
- Why did the previous person leave the position?
- What would the successful person be tasked to do in a typical day?
- How does this position fit into the department and / or company?
- Could you explain the company structure to me?
- Is there any further education assistance or support?
If the position is more senior then you can prepare question around the following themes:
- current issues that will face the successful candidate;
- inter-personal challenges in the department;
- any process, technology or people challenges that needs to be attended to urgently;
- key result areas that need urgent attention in the first few months;
The above information should get you started. Prepare a few questions so that you can show your worth. Good luck with your interview!
