Bank Better, Live Better
use your access facility to your advantage15/07/2020
Having access to revolving credit has many advantages, but you need to make sure you use it responsibly to get the most out of it.
The up side of having an access facility is that you have access to money when you need it. But as with any type of credit, an access facility comes with responsibility. And if you don't manage it well, it can become expensive. The good news is that you can avoid unnecessary costs – sometimes it’s as simple as when you choose to access the money.
For example, if the idea of having a generous balance in your savings account appeals to you, you may be tempted to transfer money from your access facility before you actually need it. But what you may not know is that you'll pay more interest on the money you've transferred from your facility than the interest you'll earn by having it in your savings account. Essentially, it means you'll pay unnecessary interest.
Let's say for instance, you apply for credit to make home improvements and are granted a Capitec access facility of R150 000 (at a personalised interest rate of 17.4%). You decide to transfer R90 000 into your main savings account straight away. You pay R9 500 for building materials the next day, which leaves you with R80 500, on which you are charged interest daily on the outstanding balance. You only use this remaining money 3 weeks later to pay a building contractor.
Now here’s where the difference comes in. If you only transfer R80 500 from your access facility when you need it to pay the building contractor, you'll be charged less than R400 interest. But by transferring it 3 weeks before you need it, you'll be charged more than R1 000 interest. See the transactions listed below, pay careful attention to the transaction dates:
|Date||Transaction type||Transferring money before it's needed||Transferring money only when needed|
|04/05/20||Access facility limit granted at branch||R150 000||R150 000|
|04/05/20||Transfer to main savings account||R90 000||R10 000|
|05/05/20||Swipe card to pay for building materials||R9 500||R9 500|
|25/05/20||Transfer to main savings account||R80 000|
|25/05/20||Pay building contractor||R80 500||R80 500|
|31/05/20||Interest paid for the month||R1 158.41||R395.67|
|31/05/20||Interest earned for the month*||R110.92||R1,34|
|Total interest paid on outstanding balance||R1 047.49||R394.34|
*Savings account interest rate at 2.5% for illustration purposes only.
Apply for an access facility
With a Capitec access facility, you get access to affordable revolving credit whenever you need it. Based on your personal profile, you could get up to R500 000 to repay over a period of up to 60 months.
It's credit that puts you in control because you decide when to use it, what you want to use the money for and how much you want to use. You also choose the amount to repay every month or the number of months over which to repay it. And it doesn't cost you anything if you don't use it.
You can apply for our access facility whether you’re already a Capitec client or not. Simply visit a Capitec branch with the following:
- Your valid SA ID document or smart ID (new clients only)
- Your latest 3 consecutive salary slips
- If you’re not a Capitec client or your salary isn't paid into your Capitec account, you’ll also need to bring a bank statement that shows your last 3 consecutive salary deposits
To speed up the application process if Capitec isn’t your main bank, bring along your bank card. Capitec uses DebiCheck, which puts you in control. You must electronically approve each new debit order before it can be processed to your account. If your credit application is successful, you’ll be able to use your card and PIN to approve the DebiCheck debit order.
Before visiting a branch, you can also use our online credit estimate to see what you could qualify for.
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