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Questions regarding credit cards are over a thousand if we have to number them. From people finding answers to what a credit card is to where a credit card can be used amidst others. This is not surprising because many people are new to the concept of credit cards in Nigeria so it is only okay to ask questions for better knowledge. We have answered some of these common credit card questions in our previous blog post and have even made videos to better explain some of them.

In this blog post, we have curated 10 of these common credit card questions to better explain the concept of credit cards to you. If your question is not outlined here, kindly ask in the comment section, we have all the answers 😎

What is a credit card?

We won’t get tired of answering this question 😎. A credit card is a small rectangular card like your debit card which allows you to get funds from lending organizations to pay for your purchases while you pay back on your repayment date (the end of your billing cycle). If this explanation isn’t clear enough, then you should watch this 1-minute video of this young lady explaining what a credit card is.

What do I need to do to get approved for a credit card?

Getting a credit card takes a seamless process because you do not need to get collateral or a guarantor to get a credit card. We have written a blog post where we have provided you with all the information you need to get approved for a credit card.

When am I to make my credit card repayment?

Credit card repayment is one important aspect of credit cards that you should not joke with as it can increase or decrease your credit score and affect your credit reputation. Increase your credit score when you make timely repayment and decrease your credit score when you miss your repayments. Still not clear? Watch this repayment video.

What does it mean to be “pre-approved” for a credit card?

Getting a pre-approved credit card means that you have been found eligible to obtain a credit card. However, you still have to apply before you can access the funds on the credit card. For example, if CredPal pre-approves you for a credit card it means that you are a quality candidate for CredPal’s product (credit cards).

What is the difference between a credit card and a debit card?

The difference between a credit card and a debit card cannot be seen in its physical form because they are both plastic and rectangular cards. In simpler terms, a credit card is a small plastic card that allows you to borrow funds to make payments at the point of purchase while a debit card is a plastic card that allows you to spend money by drawing funds you have deposited at the bank. Because this is a frequent question that people have asked over and over, we have written a blog post to answer the question properly.

How do I avoid credit card fees?

Nobody likes extra fees. Imagine paying back what you have spent with extra charges that you did not plan for when you got your credit card, it can be very painful. There is only one way to avoid this, “Make timely and full repayment every month.” That is the only solution to avoid extra charges, it is not difficult to achieve, if you work towards it, you can achieve it.

Here is why it is important to make timely repayment.

When should I redeem rewards on my credit card?

Whenever it is convenient for you. You can use your rewards to clear your balance when you want to make your repayment or use it to shop on CredPal’s marketplace to get discounts. However, some credit cards would require you to use your rewards within a certain period or you lose them.

How do I clear my balance?

Different lending organizations have different options for clearing their customer’s balances but the common options are instant debit from your debit card or payment through a bank transfer. For CredPal, we offer an easy balance payment. All you have to do is click on the clear balance option when you log in to your app and we charge the debit card that you added to your CredPal account or you make a bank transfer to CredPal’s account. Here is a video on how you can pay back what you have spent on your credit card.

What is the minimum or maximum credit limit that I can get?

Credit limits are set based on the Underwriter’s estimation which ranges from your financial standing to your credit history. This means that there is no clearly stated minimum or maximum limit. You are given a credit limit based on your income and your ability to pay it back.

How can I get a credit card in Nigeria?

Getting a credit card in Nigeria is easy but getting a CredPal credit card is easier. All you have to do is download the CredPal app on the Google Play Store or App Store. Click on the create account button and provide us with the necessary information and document while you wait for your account to be approved.

If you have further questions about credit cards, kindly drop them in the comment section so that we can provide answers to them in part 2 of this article.

Read Also: CredPal partners with Orile Restaurant & Bar to accept “eat now pay later”



In the wake of minimal access to loans, we are driving a lending ecosystem that increases the purchasing power of consumers and economic growth across Africa by offering better and easier access to consumer credit through credit cards, buy now, pay later, and loans.

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