Credit cards are used ubiquitously throughout South Africa- and are the reason that many of us get into debt, too! Credit cards are also recommended as one of the first lines of credit you can build, helping you to boost your credit score and start building your credit history.
While this is true, you often face the issue of needing a credit record to get credit, and credit cards aren’t immune to that. Prepaid credit cards are a great answer to that dilemma, but are very new on South African shores. Today we look at a prepaid credit card called Slice with a longer history. We cover how it works and what to expect, so you can learn more about these products.
What is a Slice Credit Card?
The Slice Credit Card is a well-known and trusted type of prepaid credit card on offer to the Indian market. They have been operating for quite a long time now, and give you a great idea of how prepaid credit cards work.
Let’s step back to that pesky credit history problem for a moment. This is where the idea of a prepaid credit card is immensely useful. A prepaid credit card allows users to load funds onto the card in advance. Unlike traditional credit cards, which extend a line of credit to the cardholder, prepaid credit cards require users to deposit money onto the card before making purchases. However, responsibly using them can help start your credit score off the right way, even though they have a smaller credit record impact than traditional credit cards. They otherwise act as a standard credit card, and no one will know if your card is prepaid or not.
We are seeing more of these prepaid-style credit cards enter the South African market through many of the regular banks as well as new providers. They are a great product for an emerging market like South Africa, especially as they need no credit check. You preload most of your funds, so they know you can always cover what you spend. However, they are also very new, and you may be wary of them. So let’s take a closer look at how Slice works, which will give you a fantastic idea of how your own prepaid credit card will work for you.
What Are The Benefits and Disadvantages of a Slice Credit Card?
The Slice credit card offers several benefits, including cashback rewards, zero-liability fraud protection, and customizable spending limits. They also have a reward program. So, very similar to traditional credit cards. Slice has some unique advantages too, however. The Slice card and prepaid cards like it cater to the specific financial needs of poorer and emerging-world demographics, especially those trying to establish or rehabilitate their credit history.
Of particular interest will be the fact it has no credit checks. Slice also offers features like instant approval because there is no credit check. There are also no annual fees as you aren’t operating in a true credit environment. They offer tailored credit limits, too, and an associated loan service. In time, you could leverage a small short-term loan to grow your credit score further, and as the lender already ‘knows’ you, you have a greater chance of approval even with a poor or non-existent credit record.
However, it’s essential to weigh these benefits against the potential disadvantages inherent in the prepaid credit card format. Let’s explore more
Slice Credit Card Disadvantages
While the Slice credit card and similar prepaid credit cards offer strong benefits, you should always watch out for the disadvantages, too.
Firstly, the reason that a prepaid credit card like Slice can still build credit history is that you have some wiggle room on balance payments. You can pay over three separate payments if you need to. However, you will lose all cashback rewards if you do so, and will not be able to use it until the balance is settled. They also offer scratch cards, which can promote an unhealthy gambling mentality, especially if you already have addiction issues.
Additionally, your balance will be limited, as there is still some risk to the lender. With good behavior, however, this can be raised over time. You may not build the needed responsible mindset for a true credit card with a prepaid option, however, as you are still limited by the product. This means many people upgrade to a traditional credit card without properly learning how to manage one. In fact, the prepaid model can make using credit seem a little too easy and convenient!
How Good is A Slice Credit Card?
For people who value cashback rewards and customizable spending limits, the Slice credit card offers significant value. It is also great to offer you a credit card-like payment option if you steer away from true credit products. This is useful for online shopping, reducing the cash you carry, and more. However, most South African debit bank cards can also be used that way, so they aren’t necessary for that reason. As we’ve also noted, they are a great way for people unable to access traditional credit to build up a good credit history.
Slice itself is a reputable and widely known product on the Indian market, so can be considered very good. However, while it is backed by Visa, you may have issues using it outside of India, especially as the balance is loaded in Indian Rupees.
Slice Credit Card – Check Its Features & How to Apply Online
As always, you need to think carefully about any financial decision you make. It is never wise to rush into credit products, even a limited one like this!
A Slice credit card can be easily applied for online through the Slice website or mobile app. Provide the required personal and financial information, and await approval from Slice. Once approved, you can start enjoying the benefits of the Slice credit card and managing your finances with ease. Most of South Africa’s prepaid credit cards work the same. Why not check if your bank offers one that appeals to you today?
