South African Credit Cards & Rewards: is it worth it?

[SAStache]

Hi, I'm fairly new to MMM. Great blog!
As a result of some money mismanagement during my younger, spendy days, I've been avoiding credit cards like the plague. Instead I've tried to minimise my banking costs as much as possible through low cost cheque accounts. But, getting more into the process towards FIRE and exercising my frugality muscles, it seems like getting a credit card and directing my normal spending through it might not be such a bad idea after all.  Especially if it could help with paying for some holidays through a rewards programme?  Problem is, I find this whole credit card reward system in South Africa a bit of a ball ache.  It just seems complicated and murky. Is it actually worth it? 
I'm considering giving it a go for a year, and am currently leaning towards Nedbank Greenbacks and FNB eBucks.  Anybody in South Africa actually having success with these or able to give some advice?  Or any better Credit Card Reward Programmes that's worth it?

 

[ROF Expat]

SASTache,

I don't know how many South Africans are active here, so I'll take a crack at it.  I think you'll have to look into each rewards program and see what they really offer you.  If you post the results here, there will probably be some interest. 

FWIW, when I lived in SA, the rewards programs didn't seem all that generous, but maybe that has changed.  At that time,  SA retail banking was some of the most expensive in the world, and although I don't live in SA now, I'm still in Southern Africa and the South African banks I deal with don't seem to have improved much. 

Congrats on the Rugby World Cup!

[SAStache]

Thanks ROF Expat, especially regarding the Rugby World Cup win. South Africa needs every bit of good news it can get!

I did some limited research and it seems like the FNB eBucks reward system will likely be the best bet.  It's a bit of a pain because it strong arms change in behaviour, e.g. that all of your petrol purchases should be from Engen Garage, groceries from Checkers, and of course most of your banking and insurance etc through FNB.  But heck, if I'm able to do the expenses that I was going to do in any case through them without extra costs, and it results in a free oversees flight ticket by the end of next year, then I reckon it's worth it.

What clinched the deal was probably FNB's Connect cellphone offering.  I've been with MTN for years now, on a contract that cost me more than R1,100 ($75) per month and which thankfully came to an end last week. FNB has an option of getting a sim card through the bank, and they then gift you some data and voice minutes etc every month (if you adhere to some banking conditions).  This, along with a 2gig data month-to-month top-up contract would probably cover most of my needs, for only R125 ($9).  This is without a new handset, seeing that my old iPhone is still in good working order.

My main, grown-up bank account will remain with Nedbank for now, seeing that my home loan is with them and my salary get's paid into it.  But I'll slowly migrate some of the banking stuff to FNB and try and follow the right eBuck behaviour. 

Let's see how it goes and hopefully I'll be able to report some happy holidaying soon!

 

[BussoV6]

Another Saffer here. I think ROF Expat has it spot on. Most of the incentive programs are pretty crap. I think the FNB ebucks is probably the best, but I wouldn't be able to make the changes that would make it worthwhile.

However, if you find a deal that suits, go for it.