How to Get a Credit Card in Kenya
Credit cards are bank-issued to ensure that holders can pay for goods and services even without cash in hand. Depending on several factors, each customer gets a limit on their credit card, meaning they cannot spend more than the set limit.
Like regular loans, the credit card holder will have to pay back the money they owe to the bank and do so with interest. The good thing about this service is that one doesn’t have to pause their plans because they lack enough money.
If you want to obtain a credit card, but you’re wondering how to get one, below is a review on how to go about it in Kenya:
What to expect when applying for a credit card in Kenya
As hinted above, your credit card may have different features from another person’s, even if you’re both dealing with the same bank. Below are some credit card options offered by banks in Kenya and the features that differentiate them from each other:
Classic Visa card – best suited for anyone requesting a credit card for the first time, and the limit is Ksh 20,000 and above.
Gold Visa card – comes with a higher limit of KSH 200,000 and above.
Platinum Visa card – comes with an even higher limit of Ksh 300,000 and above.
Gold Mastercard – you can spend on things that cost Ksh 50,000 and above.
All options come with a flexible repayment option of between 10% and 100% of the amount you owe.
Absa Bank Kenya PLC
Signature card – Comes with a 2% cashback per Ksh 100 spent locally and 3% if the spend is international.
Platinum card – comes with a 2% cashback on your purchases. To be eligible for a platinum card, you should be earning Ksh 200,000 and above.
Gold card – you’ll receive a 1% cash back after your purchase. To qualify for this option, you must be earning Ksh 50,000 and above.
Classic rewards card – You’ll earn a 0.5% cashback on all your purchases, and the minimum salary requirement is Ksh 20,000 for Absa clients and Ksh 40,000 for individuals who aren’t Absa clients.
Classic card – this is the best option if you’re not earning a lot of money, as the minimum salary requirement is Ksh 20,000 for Absa clients and Ksh 40,000 for individuals who aren’t Absa clients.
Stanbic Bank Kenya
Gold credit card – minimum earnings requirement is Ksh 150,000, and the monthly interest rate is 3.3%.
Silver credit card – you must earn a monthly income of not less than Ksh 30,000, and the monthly interest rate is 3.3%.
From the three examples above, it’s clear that credit cards are characterized by the following:
- Repayment period – you must honor it to avoid having a bad credit score. Remember that your credit score will determine whether you can get loans from your bank or other financial institutions.
- A minimum salary requirement – guarantees that you can repay your debt. If you don’t earn as much as expected, then there is a probability that the bank will deny your credit card request.
- Credit card limit, which is highly dependent on your financial ability and credit score. Again, a low salary will result in a low credit card limit, which is understandable, as it means that you’ll be in a position to repay as expected.
- Rewards – as a move to motivate people to apply for credit cards, some financial institutions design rewards such as the cashback plan for Absa Bank.
- Open to all – You do not have to hold an account with a particular bank for your credit card request to be approved. However, your requirements for eligibility may differ from those who have active accounts.
- Interest rates, where you’ll pay more than you’ve spent as this is how banks generate profits.
How to increase your chances of getting a credit card in Kenya
Based on the above credit card features and requirements, you can play a role in ensuring your credit card application doesn’t get rejected. Below is how to see to it that your request is accepted:
- Build a good credit score
Repay all your loans on time to avoid being escalated to CRB, as this will make lenders think twice about offering financial assistance. Communicate to your bank’s representative before they take any drastic action if you’re having challenges that may see you dishonor the agreed repayment period,
- Look for a stable source of income
As explained earlier, your earnings are a huge determinant of the type of credit card that the bank can approve. Getting a stable job, running a successful business, or investing in other ventures is how you guarantee the bank that you can afford to pay the amount of money that will accumulate on your credit card.
- Apply for a card for which you meet the set requirements
If you earn Ksh 100,000, do not apply for a credit card whose salary requirement is Ksh 500,000, as doing this will result in immediate disqualification. Instead, obtain more information about each card’s features and requirements before filling the application form.
- Analyze your financial capability
Credit cards take away your financial burden for a certain period, provided you can pay back on time. However, you shouldn’t subject yourself to more debt if you’re already in a financial crisis, as doing so will not make the situation bearable. Determine the best way to get back on your feet without adding to your financial burden. For example, watch your extravagance to save a few coins and direct them to other areas in your life.