If you’re a student, you’ve probably heard of the ABSA student credit card. Student life is often fraught with budget constraints. Furthermore, getting credit may not be easy. The most common reason for this is a lack of income or a lower income. In general, students either work part-time or don’t work at all, which makes getting a credit card hard. ABSA, however, offers students the opportunity of owning their very own credit cards.
Why the ABSA student credit card is a great option
Firstly, we understand that education is an important aspect of leading a successful life. Secondly, we also understand that having money available is vital. ABSA student credit cards allow students to create a better future while teaching them how to manage money.
The ABSA student credit card is the perfect way to start building a credit profile. The bank offers great rewards and little to no fees; making it ideal for students. Additionally, students get up to 57 days of interest-free rates. This means that if you pay off your credit card within 57 days, there will be no interest penalties to pay.
Lastly, there are no transaction fees to pay. What this means is that students will not pay any additional fees on purchases made.
Benefits of getting an ABSA student card
As a student, life can get extremely busy. Managing studies and finances can be quite stressful. With an ABSA student card, you can enjoy a whole lot of perks, while concentrating on your studies. Here are some of the benefits of applying for an ABSA student credit card:
Absa Rewards
ABSA has some great rewards and advantages available to its customers. Students can enjoy getting cash back from ABSA rewards when paying with their cards. Secondly, if you use the Banking App to complete simple challenges you will receive ABSA Advantage rewards. The Advantage rewards are meal vouchers that can be redeemed at selected restaurants. This, in our opinion, is pretty great, especially if you’re a student.
Here is a list of some of the ABSA rewards partners:
- Bolt
- Woolworths
- Baby City
- NetFlorist
- Dischem
- Sasol
- Nu-Metro
- Pick n Pay
- Travelstart
- Food lovers market
Students can earn up to 30% cash back on purchases made with their partners.
Digital banking
The ABSA app allows users to manage their money and do banking from anywhere at any time. Customers can block a stolen or lost card from the app instantly. Furthermore, users can manage their daily card limits and make payments with a click of a button.
Get free travel insurance
If you’re out on an adventure and need some travel insurance, ASBA has you covered. They offer students R1.5 million basic cover for travel emergencies. This includes medical cover and 90 days automatic basic travel insurance for international trips.
No monthly account fees
Students can reap the benefits of not having to pay a monthly account fee. This is an excellent initiative and allows students to save money while having financial freedom. Additionally, all purchases are interest-free within the first 57 days.
Build up a credit profile
Using an ABSA student credit card gives students the perfect opportunity to build up their credit history. This, in turn, assists with increasing credit scores. Students will be able to apply for higher credit upon graduating and earning a higher income.
Free lost card protection
ABSA student credit cards are covered in the event of theft or loss. However, it is the client’s responsibility to inform the bank if such an incident occurs. Call 0800 111 155 to report a missing card.
Notification alerts for all transactions
For additional security, ABSA activates SMS notifications on all account activity. This aids students in viewing all payments made in and out of an account. This system helps prevent any fraudulent activities from taking place.
Contactless payments
Students can pay for purchases quickly and effortlessly via contactless payments. Each credit card comes with tapping abilities, allowing clients to tap and go.
Shop securely online
Another perk of using an ABSA student credit card is that you can shop online. To use this feature, the client will need to activate the card for online shopping.
Fixed payments
Outstanding debt repayments are fixed each month. This allows students to pay a fixed rate each month. Alternatively, extra payments can be made if a client would like to settle installments sooner.
Disadvantages of ABSA student credit cards
Now that we’ve taken a look at some of the advantages, it’s just fair that we discuss the disadvantages. Student credit cards do not qualify for ABSA garage cards. This might be an issue if you pay for your own vehicle fuel.
Another disadvantage is that there is no credit life plan. A credit life plan pays off your debt if something were to happen to you.
What are the application requirements?
The ABSA student credit card is available to students aged between 18 and 30. Students will also need an income or allowance of R800 per month. Furthermore, clients will need to be a registered full-time student at one of the following institutes:
- FET college
- University of technology
- University
- SAQA-approved institution
- Private institution
Application process
The application process involves either visiting an ABSA branch or the ABSA student bureau. Upon visiting the branch you will need to present the following:
- Valid South African ID book
- Proof of residence no older than three months
- Proof of income for three consecutive months
Conclusion
ABSA student credit cards are perfect for those who have no credit history. The no monthly facility fee policy is very attractive and ideal for students. Furthermore, this credit card is a great option for students who have a low income or allowance.
Students can also enjoy the benefits and rewards when using their credit cards. The fixed monthly repayments allow clients to have more financial freedom. Furthermore, this starter credit card is a great way of teaching students how to manage money.
The application process is simple and requires no ITC checks. As a result, ABSA assists its future clients in building the perfect credit profile. For more information visit https://www.absa.co.za/
