There is a longstanding debate on the dominance and use of credit cards in Nigeria. However, it holds that its use by individuals and businesses is relatively low when we analyse the international scene.
In this post, we’ll be going through what credit cards really are, and the top companies in Nigeria where you can get them.
A credit card is a plastic card that lets you access the credit limit your card issuer gives you.
A credit limit is like a loan. However, instead of giving you cash, the bank permits you to take as much credit as you desire for a period and then allows you to reuse the loan over and over and pay it back later.
A lot of processes go on during a credit card transaction. When you swipe your credit card to make a purchase, the merchant’s card terminal asks your credit card issuer whether the card is valid and if you have enough available credit.
Your card issuer sends a notification of the approval or rejection of the transaction. If it’s approved, you can take the goods and services and go on your way.
Every time you make a transaction, your credit goes down by that same amount. If you have a ₦100 credit limit and you make a ₦25 purchase, you’ll have ₦75 available credit remaining. You’ll be owing the bank ₦25.
If you borrow another ₦50 before paying back the ₦25 you borrowed, you would owe the bank a total of ₦75 and have ₦25 in available credit.
The difference between a credit card and a typical loan is that your limit is available after paying the balance on the card.
In the earlier example, if you paid back the ₦75 that you owed, you’d have ₦100 of available credit again.
With a First Bank credit card, you can make everyday purchases, consolidate your borrowing, and build a credit-worthy record for yourself.
There are 3 different types of credit cards offered by First Bank. They include:
You can get the UBA Naira credit card if you’re a customer who has been using a UBA salary account for a minimum of 3 months.
This credit card can be used both locally in Nigeria, and internationally at any ATM or POS outlet. You will also enjoy a flexible repayment option of 10%.
There are two types of credit cards offered by Standard Chartered Nigeria. They include:
Zenith Bank credit cards offer you the benefit of regular purchase on POS, web, and ATM. They offer a range of Classic, Gold, and Platinum credit cards that help you fund your lifestyle.
The GTBank Visa credit card is an internationally accepted payment card that is denominated in US Dollars. The card is valid for a period of 3 years.
The Stanbic IBTC credit card is a credit facility designed to provide you with cash when you need it the most. With this, you get up to 55 days of interest-free purchases and cash from any ATM worldwide. For more products from Stanbic, you can check out the Stanbic IBTC EZ cash loan.