The African Bank Black Credit Card and the Capitec Bank Credit Card are prominent in South Africa’s first-tier credit card market. Both offer competitive credit limits, interest-free periods, and reward systems, but they cater to slightly different user profiles.
The African Bank Black Credit Card targets individuals seeking a high credit limit with added benefits like earning interest on a positive balance, while the Capitec Bank Credit Card appeals to those looking for cash-back rewards and cost-effective overseas spending.
Key Features of African Bank Black Credit Card
- Up to R350,000 credit limit.
- Up to 62 days interest-free period.
- 3% interest on positive balances.
- Instant issuance after approval.
- Multiple repayment options.
Key Features of Capitec Bank Credit Card
- Up to R500,000 credit limit.
- 1% cash back on all spending.
- Zero currency conversion fees for overseas spending.
- 55 days interest-free period.
- Free travel insurance of up to R5 million.
Fee and Benefit Comparison
| Feature | African Bank Black Credit Card | Capitec Bank Credit Card |
|---|---|---|
| Credit Limit | R350,000 | R500,000 |
| Interest-Free Period | Up to 62 days | Up to 55 days |
| Monthly Fee | R65.00 | R50.00 |
| Initiation Fee | R140.00 | R100.00 |
| Interest Rate | N/A (interest based on usage) | 11.50% – 22.00% |
| Interest on Positive Balance | 3% | 2.75% |
| Cash Back | N/A | 1% on all spending |
| Free Swipes in South Africa | Yes | Yes |
| Overseas Transactions Fee | Standard Fees | Zero Currency Conversion Fees |
| Travel Insurance | N/A | Free, up to R5 million |
| Card Replacement Fee | R130.00 | N/A |
| ATM Withdrawal (Under R100) | R10.00 | R10.00 |
| ATM Withdrawal (Above R100) | R14.00 (+2% of value) | R10.00 |
Benefits of African Bank Black Credit Card
- High Credit Limit: The card offers a limit of up to R350,000, giving users access to large amounts of credit if they qualify.
- Interest on Positive Balances: You can earn up to 3% on a positive balance, which is a unique feature not common in the market.
- Extended Interest-Free Period: With up to 62 days of interest-free purchases, users can manage their finances efficiently without incurring extra costs.
- Instant Issuance: Once approved, the card is issued immediately, allowing users to start transacting without delay.
- Online Shopping and Security: Secure online transactions can be made using OTPs for added safety.
- Convenient Repayments: Repayments are easy through online, in-branch, or various electronic methods like EasyPay.
Benefits of Capitec Bank Credit Card
- Cash Back on Spending: A notable feature is the 1% cash-back reward on all spending, helping users earn as they spend.
- Higher Credit Limit: With a credit limit of up to R500,000, this card is suitable for users requiring higher spending limits.
- No Overseas Transaction Fees: For frequent travelers, the zero currency conversion fee feature saves significant costs on overseas spending.
- Interest-Free Purchases: Users enjoy up to 55 days of interest-free purchases if balances are paid off in full before the due date.
- Free Travel Insurance: The Capitec credit card provides free travel insurance of up to R5 million, ideal for frequent travelers.
- Lower Monthly and Initiation Fees: With a monthly fee of R50 and an initiation fee of R100, the Capitec card is slightly more affordable.
Requirements for African Bank Black Credit Card
- Must be 18 years or older.
- Original ID document.
- Proof of income, typically a salary slip.
- Must meet affordability assessments.
Requirements for Capitec Bank Credit Card
- Must be 18 years or older.
- Original ID document.
- Latest salary slip.
- 3-month bank statement.
- Minimum salary requirement: R5,000.
Pros and Cons
African Bank Black Credit Card
Pros:
- High credit limit up to R350,000.
- 62-day interest-free period.
- Earn interest on positive balances.
- Secure online shopping with OTP authentication.
Cons:
- Higher monthly service fee compared to Capitec.
- No travel-related benefits like free insurance.
- ATM withdrawal fees can add up, especially for larger amounts.
Capitec Bank Credit Card
Pros:
- High credit limit up to R500,000.
- 1% cash-back on all spending.
- Zero currency conversion fees for international transactions.
- Free travel insurance worth up to R5 million.
Cons:
- Shorter interest-free period (up to 55 days).
- Credit profile impacts interest rates, which can go as high as 22%.
Who Each Card Is Suitable For?
African Bank Black Credit Card
This card is ideal for individuals seeking a high credit limit and the ability to earn interest on positive balances. Its extended interest-free period (62 days) makes it perfect for users who want more flexibility in managing their cash flow without incurring interest charges. Frequent shoppers who prefer instant card issuance will also benefit from this card. However, it might not be suitable for frequent travelers, as it lacks travel-related perks.
Capitec Bank Credit Card
The Capitec Bank Credit Card is a good choice for frequent travelers and individuals who want to earn rewards for their spending. Its 1% cash-back feature on all transactions ensures that users get value for every purchase they make. The zero currency conversion fee is especially beneficial for those who make purchases abroad or travel frequently. Additionally, the card’s free travel insurance and lower monthly fees make it an attractive option for users seeking more travel-related benefits.
Other Comparison Indicators
Interest-Free Period
While both cards offer an interest-free period, the African Bank card stands out with its 62-day interest-free period, compared to Capitec’s 55 days. This extra time can be crucial for users who need flexibility in repaying their balance without incurring interest.
Rewards
Capitec offers a 1% cash-back reward on all spending, making it a great choice for users who want to get more value from their credit card usage. The African Bank card does not have a similar reward program but compensates with interest earned on positive balances.
International Usage
For users who frequently travel abroad, Capitec’s zero currency conversion fee and free travel insurance up to R5 million make it a more attractive choice. The African Bank Black Credit Card, while offering competitive features, doesn’t provide specific travel benefits.
Conclusion
Both the African Bank Black Credit Card and Capitec Bank Credit Card offer unique benefits, making them worthy choices for different types of users. The African Bank card is best suited for individuals looking for higher credit limits, flexibility in repayment, and interest earned on positive balances. On the other hand, the Capitec card is ideal for frequent travelers and those who want to earn rewards and avoid overseas transaction fees.
