RCS Credit card

When it comes to personal finance, credit cards are arguably the most convenient product on the market.

Used responsibly, these cards give you access to special offers, rewards, and discounts while offering you a quick and safe way to pay for day-to-day expenses or emergencies.

What RCS brings to the table

RCS has been providing South Africans with a range of financial solutions since 1999. With a store card that allows you to buy on credit from over 30,000 businesses nationwide, they’ve made credit card facilities more accessible than ever.

Popular outlets that accept RCS cards include

• Checkers
• Autozone
• BuildIt
• Cash Crusaders
• Clicks and many, many more

While cash withdrawals are a feature of their store cards, RCS also offer personal loans of up to R250,000. Last but not least, their consumer protection insurance gives you access to a funeral, personal accident, and income protection plans.

Customer protection insurance and why you need it

Grief is complicated enough without the added stress of debt looming on the horizon. CPI is a form of life insurance that pays off your outstanding RCS debt if you die or become permanently disabled. You’ll also be covered for up to 12 months if you are temporarily disabled or retrenched.

As an extra incentive to ensure you keep your payments up to date, CPI only pays out if your account isn’t in arrears. This cover is underwritten by Guardian Life Limited and is offered in conjunction with personal loans and store cards.

How personal loans differ from credit cards

Personal loans are a once-off agreement between you and a lender with a set amount, term and fees. Once approved, funds are paid into your account, and a fixed monthly instalment is deducted until the end of the loan agreement.

Credit cards don’t pay out; instead, they give you access to revolving credit that allows you to choose the term on a purchase-by-purchase basis.

Using this facility for small purchases and emergencies can help you build up a healthy credit report in no time. You can avoid interest payments on your card if you pay back the full amount within the 55-day grace period.

Whether you’re interested in having a reliable backup plan or looking for a helpful budgeting tool, credit cards have you covered.

With RCS, you get all the benefits of a credit card as well as the rewards and savings that come with branded loyalty cards.

You may qualify for up to R40,000

Depending on your income and the results of the affordability and credit checks, you may qualify for between R1,000 and R40,000. Each time you make a purchase of over R600, you’ll have the option of a 24 to 36-month budget plan. Your minimum monthly instalment is calculated accordingly.

The most affordable way to pay off your credit card debt is to pay for each purchase within the 0% interest grace period. But that’s not always going to be possible. So your next best option is to always pay more than the minimum required to cut down on interest and keep your credit score high.

Your credit limit isn’t set in stone

If you haven’t already been given the option to have your credit limit increase annually, simply contact the RCS customer care centre and provide your documentation.

They’ll reassess your financial situation, and a higher limit will be applied if they see you can afford it. Read the terms and conditions carefully if you’re applying for a temporary increase.

How the rates and fees work on credit cards

If your application for an RCS store card is approved, you’ll receive a pre-agreement that lays out the interest, service, initiation, and insurance fees attached to your account. While each agreement is tailored to the individual, here are the basic guidelines set by the NCR.

• A monthly administration fee of up to R60.
• R165 plus 10% of your credit limit as a once-off initiation fee that is paid upfront or dispersed over the course of your credit agreement.
• Interest is based on your credit score, which may vary depending on the repo rate.
• Monthly consumer protection insurance fee  as per the terms of your credit agreement
• After the grace period, interest on your account is calculated on a daily basis and compounded at the end of each month.