Credit cards Archives - CredPal

Loans Are Draining Your Wallet: Here’s How Smart Credit Can Save You Money

CredPal — Wed, 18 Jun 2025 15:21:53 +0000

In Nigeria’s financial scene, many individuals rely on traditional loans to alleviate immediate monetary needs. Yet, the steep interest rates tied to these loans can create a heavy financial burden, leading to stress and potential long-term debt. We delve into smart credit options, highlighting how they can provide borrowers with a more economical and financially insightful alternative.

The High Cost of Traditional Loans:

Traditional loans in Nigeria are notorious for their exorbitant interest rates. As of November 2024, the Central Bank of Nigeria raised its benchmark lending rate to a record 27.5%, the sixth consecutive hike in response to soaring inflation. This sharp increase has increased average lending rates across banks and digital lenders. For example, borrowing ₦500,000 at an annualized rate of 27.5% would result in ₦137,500 in interest over one year—nearly 28% of the principal. It’s a staggering cost that highlights just how financially draining traditional loans can be.

Smart Credit as a Viable Alternative:

In stark contrast, innovative platforms like CredPal present credit solutions that offer significantly more favorable terms for borrowers. Depending on the specific credit plan selected, CredPal’s interest rates range from an attractive 4% to a maximum of 14.6%. For instance, if one opts for the lowest rate of 4%, borrowing ₦500,000 would only incur ₦20,000 in interest. This represents a remarkable saving of ₦72,450 compared to a traditional loan, showcasing how smart credit can alleviate financial pressure and promote stability.

Real-Life Example:

Let’s take the example of Ada, a spirited young professional living in Lagos who needed ₦500,000 to kickstart her dream business venture. Initially, Ada considered a traditional loan with an annual interest rate of 18.49%. Faced with the prospect of hefty interest payments, she felt overwhelmed and anxious about future repayments.

In her search for better options, Ada discovered CredPal and decided to switch to their credit plan with a much more manageable 4% interest rate. This decision allowed her to effectively manage her monthly repayments, significantly reducing her overall financial burden and empowering her to focus on growing her business rather than worrying about overwhelming debt.

Conclusion:

While traditional loans may initially appear to be a quick and straightforward solution to financial challenges, the long-term repercussions can be daunting and financially debilitating. By exploring smarter credit options like those provided by CredPal, individuals like Ada can achieve greater financial well-being and sustainability, paving the way for a more secure future.

Call to Action:
Are you ready to take control of your financial destiny? Don’t let traditional loans hold you back. Explore the diverse range of credit solutions CredPal offers today and begin your journey toward smarter, more informed financial decisions.

Download the CredPal App now!

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CredPal Products – All You Need to Know

CredPal — Wed, 07 Aug 2024 09:52:07 +0000

Credit

Credit is a financial arrangement in which a lender provides funds or resources to a borrower with the expectation of repayment at a later date, usually with interest. Access to credit is very important. Especially with how frustrating personal finances are in the country, you never know when you will need emergency funds. So, here’s how CredPal credit can benefit you!
The CredPal credit works simply like any credit card and allows you access to funds anytime you need them. Customers have a 30-day repayment period tied to their salary or monthly income date.

HOW TO ACCESS CREDPAL CREDIT

- The user signs up on the mobile app.
- The user clicks on “Apply for credit”.
- The user fills in all information provided.
- The user application is vetted between 24 – 48 hours.
- The user is approved for credit.
- The user transfers money to their personal bank account from his/her CredPal credit wallet.

Each user then has a credit score, which is a 3-digit number between 300 and 850. The lower a user’s credit score, the more likely the user is to default on payment, and vice versa.

CredPal offers users the Credit Builder feature, a type of savings designed to help people with little or no credit history establish and improve their credit scores. Credit builders are a great option for people who are new to credit, have had credit problems in the past, and are trying to increase their credit score to qualify for large loans.

It helps users establish their credit history, improve their credit score, and save money, too!
It’s time for you to join the countless pleased customers who have gained so much from our accessible credit solutions without hassle. Apply today and take the first step towards financial freedom!

Savings

Saving money is essential for achieving financial stability and reaching your future goals. At CredPal, we offer innovative savings solutions to help you grow your wealth effortlessly. Maximize your savings and reach your financial goals faster with CredPal!

CredPal helps to maximize your funds with our free withdrawals, secure savings, and up to 26% yearly interest with our flexible savings plan. Protect your savings from inflation and secure your financial future by growing your wealth. With interest rates of over 2% monthly, you’ll be able to reach your financial goals sooner than you think! Set a financial goal and save consistently towards it. Effortlessly watch your money grow!

With these features, you can easily build an emergency fund, save for a big purchase, or even plan for retirement! Our platform makes it simple to start saving and develop a saving routine, with no minimum balance requirements and seamless integration with other features.

So, what’s stopping you from joining the rest of our savvy savers to enhance your financial future with CredPal today!

Buy Now, Pay Later (BNPL)

Have you ever needed to make a purchase urgently but didn’t have all the funds at hand? CredPal offers the Buy Now, Pay Later feature, which is revolutionizing the way we shop. Buy Now Pay Later is a form of financing that allows customers to buy items and claim immediate ownership after paying a part of the money and spreading the rest over an agreed-upon period.

CredPal’s BNPL service offers flexible payment plans, no interest if paid on time, and instant approval. This makes it a very affordable and highly convenient way to make purchases and offers a lot of help to people. Be it gadgets, clothes, shoes, or household appliances, CredPal has got you! With our wide range of merchants and seamless integration, CredPal makes shopping and spreading payments easy!

Unlock the freedom given to you by CredPal’s Buy Now, Pay Later feature, and start enjoying purchases now!

Don’t wait any longer to take control of your financial future. Join the growing number of satisfied customers who have experienced CredPal’s benefits. Sign up today and embark on your journey to financial success!

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Build a Credit Score That Will Make Lenders Give You Money

CredPal — Fri, 13 Oct 2023 12:33:05 +0000

Do you know your credit score and your financial health are closely related?

“The economy is hard! Items are expensive to purchase.”

“I now spend three times more on transportation to work than I did earlier this year!”

“I literally have no savings left from my monthly income!”

“I wish I could get access to quick credit to grow my business!”

If you’ve ever said any of these or know someone who did, then this article is perfectly for you.

A common way to stay afloat in unpleasant financial situations is to borrow from lenders; institutions that give loans or credit to people.

However, legit lending companies won’t give you access to funds if you have a bad credit score. A background check on you can easily reveal your financial health and habit to them.

A good way to get lenders throwing cash at you without thinking twice about it is by having a good score.

Your credit score relies on the details in your credit report, reflecting your financial history over time. These factors determine your score, and if it’s lower, it indicates a greater risk for lenders.

A simple way to build your credit score is by using CredPal Credit Builder. You can download the CredPal app here.

How CredPal’s Credit Builder Works

The CredPal Credit Builder is a tool that gives you the opportunity to do either of these three:

Build your credit score if you have no credit history.
Repair your credit score if you have a bad credit history.
Improve your credit score if you have a fair credit history.

Build Your Credit Score:

If you have never taken a loan in the past or you credit or loan habit was not reported to a credit bureau, then you wouldn’t have a credit score or credit history as you are yet to prove to lenders that you can be consistent with making repayments as at when due.

With CredPal Credit Builder, it gives you the opportunity to build your credit score by being approved for credit after consistent savings over a 3 months period.

Read our article on Why Your Loan Application was Denied

Repair Your Credit Score:

If you have ever defaulted on loans or frequently make late repayments, you credit score will most likely be bad. This is a red alert that immediately inform lenders to be wary of giving you credit or loans if you request from them.

With CredPal Credit Builder, you can begin to get access to loans again after repairing your score over a certain time period. This is important for your overall financial health.

Improve Your Credit Score:

If you have a score between 690 – 719, then you have a good score which can be improved to excellent. You can already prove to lenders easily that they can trust you with money and have a confidence that you will pay back in good time.

However, there’s still need to improve it so you wouldn’t have any worries about your financial health.

CredPal Credit Builder is the easiest way to build, repair and improve your credit score in order to be eligible for loans irrespective of the lending company you approach.

Build your Credit Score today! Download the CredPal app or visit CredPal.com.

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Rebuild your credit history with CredPal Secured card

CredPal — Thu, 07 Apr 2022 15:40:01 +0000

Getting declined after applying for any form of credit – credit cards, or loans – could be a result of bad credit history, low credit score, or history of late repayments. This can hinder your access to obtaining credit from any financial institution. As a credit financing company whose goal is to make credit accessible for consumers in Africa, we have built a product that allows you to fix your credit reputation with our Secured Credit Card.

What is a Secured Card?

Just like the name implies, a secured credit card is a card that helps you fix your bad credit history. It’s a card that gives you access to credit in exchange for a cash deposit of the same amount as your credit limit.

CredPal Secured Card

Our Secured credit card helps you to build your credit reputation and gives you access to unlock our buy now, pay later services, which also makes it easier for you to access loans in the future.

How to apply for a CredPal secured card

Deposit cash collateral of a minimum of N10,000 (The higher the amount you deposit, the better your chances of improving your credit score)
Unlock CredPal credit card of the same value.
Use the funds on your credit card and repay monthly for a period of 4 months.
CredPal would report your monthly repayment to the Credit Bureau to rebuild your credit score.
Withdraw collateral at any time after successful repayments without default.

After 4 months, your credit reputation will be rebuilt and you can access credit facilities easily from financial institutions.

To get started, simply deposit into the CredPal account below:

Account Name: Crednet Technologies Ltd

Account Number: 1016259279

Bank: Zenith Bank

Once the deposit has been made, send your proof of payment to securedcard@credpal.com or call 017007999.

Benefits of using a CredPal Secured Card

You do not need a good or perfect credit history to qualify
Your credit limit is tied to the amount you deposit
Your credit history is fixed in 4 months if credit is properly used.
The higher your deposit, the higher your credit limit is, and the faster your credit is fixed

If you’ve been struggling to get approved for credit, loans, or buy now, pay later services, then a Secured card is what you need. This is because your bad credit history cannot fix itself and doing nothing about it will obstruct you from accessing any form of credit.

Make a cash deposit to the account details above, or login to the CredPal app today to get started.

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9 Tips to meet your financial goals in 2022

CredPal — Thu, 06 Jan 2022 16:35:11 +0000

Setting goals at the start of the year is always a “beginning of the year syndrome” that affects almost everyone, especially financial goals. It’s more like a new year, a new beginning, and another opportunity to review the past year and set the ball rolling again. Financial goals seem to be the height for some of us as that is the time where we sum up all the things we want to achieve into a monetary figure that it will produce at the end of the year.

Hence, we will be discussing how to meet your financial goals and stay out of debt this year. Financial goals can be scary sometimes because you write the figure and you ask yourself, can I really meet up with this? The answer is you can if you plan and follow the tips we are going to share in this article.

1. Create a budget and stick to it.

A financial budget is necessary for every financial goal. It helps you to plan how much you will be spending on certain things every month. You can do this by creating a list of what you spend every month. Examples of these expenses are groceries, subscriptions, transportation costs, provisions for the house, savings, amongst others. It is important to create a budget for all these to know when you are spending more than you earn and when to control it.

This article by The balance will help you learn a step-by-step guide to creating a personal budget.

2. Stop impulse buying

Sticking to a financial budget takes discipline which shows if you know how to say no to impulse buying or not. There are times where they are just too beautiful to ignore or you need them to satisfy your cravings at the moment but you need to know how to stay disciplined so that you can meet your financial goals. This year, ensure that you buy with your head, not your emotions.

3. Pay off credit card debt

Here at CredPal, we encourage an early repayment lifestyle. Our credit card services are flexible and give you a grace period of 3 days when you miss your repayment before incurring late fees. Late repayment habits attract more than you are expected to pay back which is unhealthy for your financial goals.

Here is an article that speaks to why it is important to make early credit card repayment.

4. Invest

Another way to get your money to work for you is by investing. Ensure that you invest in what you trust alone. There are so many fraudulent investment plans out there, do not fall for them. Do your research and invest wisely.

5. Get paid what you’re worth

We live in a country where the thirst for getting employed allows many to accept any pay. This narrative should change this year. You can have conversations with friends who are already in the industry and be informed about the salary range so that you can negotiate well and ask for an increase at the appropriate time. It’s 2022, you should get paid what you’re worth.

6. Cut down on monthly subscriptions

We are in a technology age where we have to subscribe to many channels in order to enjoy their services. Services like magazine or newspaper subscriptions, gym membership fees, and other streaming services. There are some of these services that you might not be using frequently or some that you do not use at all in a month, you should cut down on them. You can also find other alternatives that would not require you to pay monthly fees at all.

7. Build emergency savings plan

This is what we call, saving for the rainy days. The last 2 years have taught us that rainy days can come at any time. Who would have thought that there would have been a pandemic that would render some jobless and many half-paid. An emergency fund is money set aside in times of financial distress. Don’t be caught unaware. This is different from your monthly savings, it is just another savings wallet. Financial institutions like PiggyVest and Cowrywise are very good apps that can help you save for different goals.

8. Prepare for a major purchase

Most of us start the year with plans to either get a new phone, buy a car, build a house, start a major course amongst others. Some people make the mistake of getting these items in the course of the year and end up being broke because they had to put a huge sum of their savings into getting them.

Do not make this mistake in 2022, prepare for that major purchase.

One way to hack this is to get the items and spread the payment over a period of time. This way, the pressure of paying at once is lifted off your shoulders. Here at CredPal, we allow you to spread your payments within 6 months. And to crown it all, we have partnered with merchants within different industries like gadgets and electronics, flight & travel, groceries, fashion, amongst others. This also saves you the stress of having to shop from merchants who are not reliable.

You can read more about our buy now, pay later services here.

9. Have an additional source of income

You do not have to start big, it could be a small business where you serve as a retailer and resell to end-users, you can learn how to bake from YouTube and start selling pastries, become a makeup artist, a fashion designer, or manage a social media account for brands. This doesn’t stop you from focusing on your 9-5 as you must also learn to strike a balance between your major source of income and other income channels.

Be intentional about hitting your financial goals this year and you will be glad that you did.

Source

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Digital payments solution: A key driver for business growth – A Webinar

CredPal — Thu, 28 Oct 2021 15:46:00 +0000

The digital payments industry is one of the major drives to business success in the consumer market today. Traditionally, the consumer market was driven by cash flow but the narrative is changing. According to the Journal of Education & Practice, 2015, the Nigerian payment system has been predominantly cash-based for both positive and negative reasons, positive because of its instant convertibility to other forms of value without the intermediation of any financial institution and negative because of its anonymity in unethical electronic payment.

We saw an information gap in the digital payment space and we were urged to educate both business owners and customers about how they can tap into the solutions and benefits that digital payment offers. The webinar took place on Friday, the 22nd of October, 2021.

To ensure that we extensively unlock the different parts and areas of this topic, we brought on board panelists who are experts in this field. We had;

Our Speakers

Fehintolu Olaogun – CEO & Co-founder, CredPal.
Omolara Awoyemi – Founding Executive & COO, Bumpa.
Amarachi Nwoke – Technical product owner, Interswitch.
Folayemi Agusto – CEO & Co-founder, tix.africa.
Edidiong Uwemakpan – Head of marketing, Team Apt.
Olorunfemi Jegede – COO & Co-founder, CredPal.

The conversation started with the CEO of CredPal, Fehintolu who gave insights into how digital payments can assist businesses to tackle issues like access to business credit, infrastructure deficit, and customer drop-offs.

He mentioned that one of the things digital payment helps to achieve is that it allows merchants to seamlessly collect payment from their customers.“ For us at CredPal, we offer credit to their customers to buy and spread their payment. This also helps the merchants to increase sales”. He discussed further by saying that merchants no longer have the excuse of lack of infrastructure because there are a lot of players in the field today who offer a wide variety of solutions like Bumpa to make all of these easy for you.

Supporting the motion, Omolara Awoyemi, the founding executive & COO at Bumpa said, adding digital payment as one of the core infrastructures of your business, means that you are empowering yourself to capture the shift. The shift is mobile penetration – the more engagement the people have with social and commerce apps that facilitate commerce, the more their willingness to pay digitally for goods and services.

The moderator, Somtochukwu Nsofor further asked her if she thinks there are more than enough digital payments solutions for businesses in Africa despite the ongoing conversation about the digital payments space being saturated?

Omolara went ahead to give an insightful response backed with statistics that she believes the future of Fintech in Africa will extend beyond digital payment into FinTech subsectors like InsuranceTech, AgriTech, Data analysis, credit score, buy now pay later like what we do at CredPal, and lots more.

She discussed further by listing other benefits of digital payments which are;

Business transparency and better money management

Ability to forecast for your business

Time-saving

Customer satisfaction

Riding on this discussion, the technical product owner at Interswitch, Amarachi Nwoke expressed her concerns about how SMEs and businesses are not willing to tap into the solutions that we have currently because there are lots of merchants that are still processing payment manually irrespective of the opportunities that abound and what they can gain from it.

To push the conversation forward, Amarachi explained why the digital payments space is important and the solutions that can help tackle the challenges SMEs face with processing payments and managing their businesses.

She explained that one of the things SMEs can do for their businesses growth is to key into digital payment acceptance because it helps businesses to create a competitive field for their product. It helps businesses cut logistic costs and have a seamless cash flow. “The most important thing about how digital payment can tackle issues with SMEs is access to finance and credit history”.

Our 4th panelist, Folayemi Agusto, CEO & Co-founder at tix.africa added to the conversation by highlighting that merchants have to keep pushing before consumers can buy into any digital payment method. The more merchants accept a payment method, the more value it has to a consumer.

The webinar went very practical towards the end of the conversation when Edidiong Uwemakpan, Head of marketing, Team Apt dived into how FinTech companies can help in the adoption of digital payment. She explained that fees are one of the reasons why merchants are not eager to accept digital payment is because some companies are collecting outrageous fees from the money that these merchants do not have. “ We need to provide services that are not too far from the habits that already exist in that space. We need to provide financial literacy to the merchants and consumers to understand more about digital payment.”

To close her session, she highlighted 3 major things that financial companies can do to make digital payment more attractive for businesses to adopt.

Reducing the fees or cost – FinTech shouldn’t take more money from the money that these merchants do not even have.

Entry process – Not really our fault but regulations. A lot of businesses cannot provide the compliance materials to get them on board. Get the easier ways to get these merchants onboard without lots of papers. Make the sign-up process as easy as possible.

Accessibility – Give people a lot more options when they use digital payment options. Ways that are not far from how we behave

Our COO and Co-founder, Olorunfemi Jegede shed more light on CredPal business credit. He mentioned that the first step to access that is to become a CredPal merchant by registering on retail.credpal.com and accepting CredPal as a means of payment for your business.

The webinar was closed with questions from the audience and answers from our panels.

You can catch up on the entire webinar here.

Panelist Company Bio

Omolara Awoyemi, Bumpa

Omolara Awoyemi, the Founding Executive/COO of Bumpa. Bumpa is a leading intuitive digital commerce infrastructure for sellers of all sizes in Africa. You can set up a free website, accept payment online.

Amarachi Nwoke, Interswitch

Amarachi Nwoke is a Technical Product Owner at Interswitch. Interswitch is an Africa-oriented technology-driven company focused on the payments ecosystem that helps commerce evolve and businesses grow.

Folayemi Agusto, tix.africa

Folayemi Agusto is the co-founder and CEO of tix.africa. tix.africa is a self-service ticketing platform for event creators to create, share and collect payments for live or virtual events.

Edidiong Uwemakpan, Team Apt

Edidiong Uwemakpan is the Head of Marketing at TeamApt. A financial services provider that champions infrastructures such as Monnify which empowers businesses in all sectors to accept payments from customers and offers solutions for businesses to manage their finances.

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Why Your Loan Application Was Declined

CredPal — Mon, 13 Sep 2021 19:15:00 +0000

A loan is a type of credit in which a sum of money is lent to another party in exchange for future repayment of the amount borrowed and the accrued interest. Anyone can apply to get a loan but not everyone is entitled to get an approved loan and this may get them to ask why their loan application was denied.

This is not a gender, religion, race, or ethnicity factor. There are some other factors that customers are not aware of because they are not aware of the reasons that can hinder them from getting their application approved.

This article is to expressly identify some factors that might be a blockage or hinder you from getting a loan. And also factors you should consider before you apply for a loan so that you do not get declined.

Applying for a loan takes a process that determines if the financial institution will disburse the loan to you or not. This process is when you are required to provide certain documents like your salary bank statement, work ID, government-issued ID, personal and employment details.

However, providing all these documents and other important information does not guarantee that your loan will be disbursed. Let’s take a look at some factors that can get your loan denied.

5 Reasons why you can be rejected for a loan

These are called predetermined criteria that guide us to know if you’re eligible for a loan or not.

1. Bad credit history

Your credit history is the primary way that lenders check if you have defaulted on paying back a loan in the past. If you have defaulted on repayment, you will be seen as a high-risk customer and you won’t get a credit limit. Providing your employment status or government-issued ID cannot help here, if your credit history is bad, your loan cannot be approved.

That is why it is essential that when you apply for a loan or a credit card and it is time to make a repayment, you make it at the appropriate time. Not only does it incur charges, but it also damages your credit history.

2. High debt-to-income (DTI) ratio

This compares how much you earn at the end of a month and how much of it you use to pay back loans. It is advised that you should not use more than 40% of your income to pay back any form of credit. Once we see that you are using more than 40% of your income, CredPal will not approve any credit limit for you. For example, if your monthly income is 150,000 Naira and you are using 105,000 Naira to pay back loans, which is 70% of your income, CredPal will not approve you of a loan.

3. You did not meet the minimum income requirement

If what you earn at the end of the month cannot pay back the loan you requested, it’s either your loan is not approved or you’re offered a lower amount. If you earn 100,000 Naira a month and you applied for a loan of 1 million Naira, that is likely going to take two years to pay back; the amount you requested will not be approved.

Also, If we’re unable to verify your proof of income or your income is below CredPal’s income requirement, you won’t be offered a credit limit. Another option here is that you might not get declined for the loan but you will be given a lower limit than you requested.

4. Inconsistent employment history

If your income is coming from different sources or you have recently changed jobs (in the last 60 days), or have freelance work from multiple employers, it may create an inconsistency in your income calculations and this could prevent us from offering you a credit limit. This is not to say that you can not be a freelancer or work on contract with different companies or brands, it simply says that you might get declined for a loan if you have an inconsistent employment history as a full-time employee.

5. You did not provide all the required information

As stated above, taking a loan takes a gradual process where you are required to provide some documents and necessary information that will help determine if your loan will be disbursed or not. Failure to provide these documents can get your loan denied. Make sure your documents are complete and accessible so you can use them when you need them.

There could be other reasons or factors as determined by your financial institution. Financial institutions always give reasons for disapproval so that you are not kept in the dark wondering why you were declined even after providing all the necessary information and documents.

In summary, to avoid not getting your loan denied, make sure that you have a good credit score, have a balanced debt to income ratio, make sure your income can pay back your repayment, have a consistent payment history, and provide all the required documents and information.

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Why Is It Important To Make Timely Repayment?

CredPal — Mon, 13 Sep 2021 18:48:30 +0000

Making your credit card repayment goes beyond fulfilling your credit card requirement. It is a process that determines whether or not you will be permitted to perform further transactions on your credit card. For those who might be coming across the word repayment for the first time, credit card repayment is what you are required to pay back all you have spent on your credit card with the accrued interest.

Credit cards are great assets that help your financial stability when they are properly handled. However, if not properly used, it could lead to debt. This happens when repayment is delayed and it keeps accumulating with extra charges till you cannot afford to pay it all. Delayed repayment could happen to anyone but it can also be avoided. Here are some cases that often leads to delayed repayment:

Overspending and inability to make a timely payment due to insufficient funds.
Waiting until after the grace period before making repayment thereby resulting in extra charges.

Missing your repayment can be a very big deal. Your credit card company might not show up in your office or at your doorstep but the actions they take behind the scenes can affect your finances for months or even years.

Here are the consequences that come with late repayment.

1. Extra Charges

Making late repayment attracts extra charges. CredPal charges a 0.5% Penalty charge for each day you fail to make your repayment. You wouldn’t know how huge that is going to turn out to be till you calculate it for months or days. It is better to make early repayment than to deal with extra charges that might be inconvenient to pay off.

2. Withdrawal of Rewards

Credit card companies give out rewards such as cashback and discounts to customers who make use of their credit cards. For CredPal, you get cashback and discounts when you patronize CredPal merchants. This feature will be withdrawn from you if you default on your repayment because CredPal sees you as a big risk and should not be liable to any reward or benefit that other credit card users should enjoy.

3. Damages Your Credit Score

Constant default in your credit card repayment can result in a bad credit score which can restrict your spending and loan capacity in the future. A bad credit score means that you will not have a better chance to get a credit card or loan approval, you pay more than you are expected to pay for your credit card repayment, and many more.

4. Decrease In Credit Limit

Frequent defaults in your credit card repayment will lead to a lower credit limit which will limit your spending capacity. This makes your financial organization conclude that you are unable to pay back or make timely repayment because you cannot afford to pay back what you have spent at the end of the month. Hence, you may be given a lower credit limit which will restrict your spending ability.

5. Paying just the minimum amount due

Some customers act wise by just paying the amount spend on their card without the accrued interest. This does not pass as the full repayment. And your interest begins to accumulate and can lead to debt that can take forever to pay back. It also allows your financial organization to conclude that you are not a reliable and trusted customer and can lead to your card blockage. It is therefore advisable to pay all you have spent with the accrued interest, full repayment, and not half.

It is always better to be safe than face the consequences of defaulting on your credit card payment. None of the consequences stated above is pleasant and should therefore keep you on your toes to always make timely repayment.

How To Keep to Timely Repayment?

Stick to the due date. You can select an auto-pay option that allows your financial organization to automatically remove your outstanding bill from your bank on your due date. That way, you do not have to bother about carrying over your repayment. CredPal particularly sets your repayment date around the day you receive your salary so that you can repay before other needs arise.
Set a reminder or an alarm to get a notification before your due date and on your due date so that you do not miss out on your repayment.

Credit cards have loads of benefits such as security, convenience, easy and fast purchasing power, and many more. However, they can cause logs of debt when they are not properly handled or used. No one likes debt or likes to pay for what they did not use. Paying for late fees are extra charges that you should not pay in the first place. To avoid all these, the perfect solution is to make timely payments.

We have made your CredPal credit card repayment very easy for you.

You can use the auto-pay option where your outstanding balance is automatically debited from your account.
Login to your dashboard, click on repayment, and ‘clear balance’.
Bank transfer to CredPal’s bank account.

Use your CredPal credit card wisely, make timely repayments!

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Credit Cards VS Debit Cards: The Differences

CredPal — Mon, 13 Sep 2021 18:28:37 +0000

Credit cards and debit cards can be mistaken to be the same just at a glance. They can be likened to identical twins though born from the same mother, they exhibit different characters. You would hardly notice any difference between both cards in their appearance. They are both plastic cards, both have 16 digits card numbers, EMV chips, expiration dates, and personal identification number (PIN) codes. Despite these similarities, they are not the same.

What is a credit card?

A credit card is a small plastic card issued by financial institutions or lending organizations like CredPal. CredPal funds the card with money that you can use for small-ticket purchases and everyday needs. Then on your repayment date, you pay back what you have spent on your credit card with a small interest according to the subscription plan you paid for.

Facts About CredPal Credit Card.

The financial organization decides your credit limit based on your income, credit history, and other factors.
You pay back with an interest.
Your repayment date is set around the day you receive your salary.
You cannot spread repayment, you pay back all you have spent at once on your repayment date.
Your credit history is affected when you do not make timely repayment.

What is a debit card?

A debit card is a payment card that allows you to make payments directly from your bank account. The account is not funded by any financial organization, the account is funded by you. This is the direct opposite of what a credit card is and the only similarity is that a debit card is also issued by a financial organization.

Facts about debit cards

You won’t pay interest on your purchases.
You can’t make any purchase if there is no money in your bank account.
Your credit history will not be affected by debit card spending.

Key Differences Between Credit Cards and Debit Cards

1. Spending

Credit cards: You can make a purchase even when you do not have enough funds in your checking account

Debit cards: Spending limits depend on what is in your checking account. You cannot make any purchase if you do not have any money in your account.

2. Rewards

Credit cards: Credit cards offer cashback and discounts when you use them to make purchases.

Debit cards: Debit cards don’t offer rewards in any form except when the merchant is running sales.

3. Access to Funds

Credit cards: You only have access to the funds in your credit limit. You cannot spend beyond your credit limit.

Debit cards: You have access to only the money in your checking account.

4. Credit Score

Credit cards: One-time full repayment can increase your credit score.

Debit cards: Your purchases don’t affect your credit score.

These cards have their values and one is not inferior to the other. It is advisable to have both and also profitable to use your debit card as your credit card and credit card like your debit card. What this means is that you use your credit card to make all purchases and use it to meet your needs then use your debit card to make repayment at the end of your billing cycle.

This helps to build your credit history and opens you to rewards such as cashback and discounts.

Advantages of Building a Credit History

Better chance for credit cards and loans approval
You are opened to rewards such as cashback and discounts
Helps increase your credit limit.

Get your credit card today with CredPal, register on www.credpal.com, and start enjoying the benefits that come with it.

Source

The post Credit Cards VS Debit Cards: The Differences appeared first on CredPal.

How and When to take a Credit or Loan

CredPal — Mon, 13 Sep 2021 12:54:39 +0000

Let us tell you a story about how you can get credit or a loan without being denied. Fasten your seat belt and get your popcorn!

Meet John, a sound engineer who wanted to get credit or loan but did not know how to make it happen. John got a big deal with a company that needs sound equipment for an event. The company is willing to pay 25% of his fee and balance him 75% when he begins to set up for the event. John is happy that he got such a deal but unhappy because the 25% that was received cannot cover the total expenses to rent the equipment needed for the event.

Studio equipments are very expensive and John needs 500k to rent them. He tried to reach out to his friends but none could help. He thought to take a loan with the assurance that the company is going to pay him his balance on the day of the event. John has one week to the event and he has never taken a loan or a credit before and now he is filled with HOW he can get the loan.

Now, let’s talk about How and When because there might be a John out there who needs this information.

Credit cards and loans are lifesavers when situations call for them as portrayed in the case of John. A lot of people know the concept of credit or loans but they do not know how to go about getting one.

Here are 5 questions you should ask yourself before getting a loan or credit

1. How much do I need?

The first question you need to ask yourself is how much you need. You must have done the necessary calculations so that you do not later regret that the loan you requested was not enough. At CredPal we give out loans from 50,000 Naira up to 5 Million Naira.

2. How long do I have to pay it back?

You have to know how long it is going to take to pay back the loan. For some financial institutions, it takes 1–12 months to spread repayment but for CredPal, you are required to spread repayment within 1 to 12 months for loans, and for credit cards, you pay back all you have spent on your salary date. You cannot spread the repayment.

3. How much will I pay in interest?

You also have to find out about the interest rate of the financial organization you are about to commit to. Interest rates vary for different financial institutions and for CredPal, our loan interest rate is 3.95% to 7% monthly. For example, if John decides to take a loan of the 500 thousand Naira needed from CredPal, he will be paying a 3.95% interest rate on his monthly payment for the period of 9 months.

4. Do I have a good credit score?

This is a factor that determines if your loan will be guaranteed or not. A credit score is a number that depicts a customer’s creditworthiness. You do not have to wait to meet your financial organization before you check your credit score.

5. How soon do I need the funds?

Answering this question will help you find out the urgency of the loan and the financial organization to get it from. If John takes a loan with CredPal. He would be able to get the equipment he needs before the day of the event.

Just like John, taking loans or credit comes when there is an urgent need to meet, and the need cannot be met if you have to save for it. John would probably have to wait for months if he has to save to get the equipment he needs and that could lead to forfeiting the job.

Here are some cases that would require you to get a loan.

1. You do not qualify for a credit card

Some organizations like CredPal only give out credit cards to salary earners so if you are self-employed and you do not qualify for a credit card, you can get a loan.

2. Your credit limit cannot fix your need

CredPal gives you Credit limits that suit your earning capacity. This means that you are given a credit limit that will not stress you to pay back when your salary comes. A loan is advised if you need to make a purchase that exceeds your credit limit.

3. A loan is your least expensive borrowing option

You should get a loan after you have weighed all your options and getting a loan is the least expensive option on your list.

Loans are forms of installment credit. If you are a John and you need a loan for whatever reason, CredPal is here to help you get both your loan and credit card.

Source

The post How and When to take a Credit or Loan appeared first on CredPal.