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Credit card education is important because credit cards are prone to be misused if they are not properly handled. Although there are thousands of credit cards in Nigeria there are users who still cannot find their way around the use of a credit card and run into debt. These 8 essentials will help you to avoid running into debt and other things that could as a result of not managing your credit card well.

1. Understand the concept of  Credit cards 

Before you get a credit card, you should know what a credit card is. A credit card is a card that allows you to borrow money from a lender. The “money” borrowed is known as the card’s credit limit. You can use the card to make basic transactions like paying for food, gym membership, hair appointment, shopping for groceries or clothing, online purchases, and several other everyday expenses you may have. The fund in the card is provided by financial institutions or credit card companies like CredPal.

2. Understand credit card terms

Just as debit cards have terms so does a credit card. Credit card terms are words and phrases you will regularly come across as you use your credit card. This ranges from knowing your billing date, billing transfer, credit limit, payment summary, posting date, reference number, cashback, and so on.

Also Read: What is a credit card?

3Understand your credit card interest rate

An interest rate is an amount you pay financial institutions or lending organizations like CredPal for using their card. Credit card interest varies from the rates for purchases to the rates for cash loans. Here’s CredPal’s interest rate.

4Paying late is costly

You are required to pay back the money you spend on your credit card after your billing cycle which is mostly your salary date. Paying late can attract fees and can affect your credit score. You can avoid this by automatically setting your repayment from your bank account or set a reminder that can prompt you to pay when due.

5. Make sure you’ve not applied for different credit cards before

Switching between different credit cards can affect your credit score which might stop other lending organizations from giving you a credit card because your account has probably been refused by other organizations which would reflect on your credit score.

What is a credit card?                   

6. Use your card responsibly

One of the benefits of using your credit card responsibly is that you are covered by unnecessary fees that you may incur on your card when you don’t make timely repayments.

Credit Card Education – Below are tips that can guide you to using your card responsibly

  • Make your repayment on time at the end of the month. By doing so, you assure your lender that you have enough to pay back and this can increase your credit limit and increase your credit score.
  • Make your repayment in full at the end of the month: Do not abuse the purpose of a credit card. By abusing it, you extend it to a long-term loan rather than a short-term loan that it was built for. And you will be charged for late repayment.
  • Try not to max out your credit card: This is just good practice. helps you to control how you spend with your credit card so that you can pay back when you have to. If you max out your credit card you might find it hard to make your repayment and that might incur charges and might lead to debt.
  • Never put anything on a credit card that you won’t be able to pay in full when the bill arrives.

7. Read your credit card terms and conditions

Many run away from reading terms and conditions because they feel it is too long and by running away, they miss out on the important messages. It is essential not to skip these terms to be on the safer side and make sure the terms and conditions suit you.

8. You get rewards for using a CredPal card

With a CredPal credit card, you get rewards with money or points that you can use to buy anything from a frozen turkey to a flight to Turkey. As your credit card performance and income improve, your credit limit may be reviewed for an increase. That means you have more funds at your disposal.

Credit card education is very essential before owning a credit card. Running into debt is not the goal for owning a credit card, the goal is to help meet your needs at the time you need them. Get familiar with these terms and make your repayment early so you can have a great credit score.



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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