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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.

Credit cards have been in existence since 1920 and fast-forward to 2021, they are still being used by low, middle, and high-income earners in different parts of the world.

Credit cards are issued by both financial and lending organizations, one of such organizations is CredPal.

CredPal is a financial technology company that offers credit cards and loans to individuals and businesses. These credit cards can be used to take care of our everyday needs and small purchases. Then, on a specific date (referred to as a billing date), you pay back whatever you have spent on your credit card to the organization.

Some individuals confuse a debit card with a credit card. Let’s break it down for you.


credit card is a small plastic card that allows you to borrow funds to make payments at the point of purchase. You are able to purchase items without cash or cheques and also withdraw cash from ATMs. A credit card gives you safe, convenient, and instant access to funds. In this case, CredPal provides the funds.

Individuals and business owners have access to CredPal credit cards as long as they have a stable means of income that can enable them to pay back when due.


A debit card is also a plastic card that allows you to spend money by drawing on funds you have deposited at the bank. When a debit card is used, the funds are deducted from your account, unlike a credit card.

Credit card funds come from the lender while debit card funds come from the money already deposited into your account by you.

Applying to get a CredPal credit card is one of the things that are easier than ABC, all you have to do is download the CredPal app on android or iOS, then register by providing the required information which you can find here.

After the successful completion of your application, your profile will be verified and a credit limit will be given to you.

How does the CredPal Credit Card work?

You don’t have to worry about putting money on the card like you would on a debit card, CredPal provides you with the money you spend.  CredPal credit card also helps you get rewards for spending money, unlike your debit card.

This helps you to have a backup whenever you run out of money. You get the things you need without waiting till a later time when they may be more expensive (you know how the dollar rate fluctuates) or the need may not even be as urgent.

What is CredPal’s interest rate?

CredPal has three credit card pricing plans which are the standard plan which gives its users an 8% monthly interest rate, the premium plan at 5%, and the prestige plan at a 2.5% monthly interest rate.

Now that you are in, let us help you get familiar with some CredPal credit card terms you should know.

1. Credit Limit:

The maximum amount of money you have on your credit card which you can use at any time.

2. Card Balance:

This is the total amount you have used on your card that is pending repayment.

3. Repayment Date:

The repayment date is when you are expected to pay the balance you owe.

4. Billing Date:

This is the date when a statement is generated and sent to you. This is always 2 days before your repayment is due.

5. Billing Cycle:

This is the length of time between the last billing date and the current billing date. At the end of every billing cycle, you will need to repay your balance so that your card can be automatically funded again for you to use.

6. Credit Card Statement:

A summary of all transactions carried out on customers’ accounts in one billing cycle. Transactions include debit transactions and credit (customer repayments). Statements are only generated on the billing date.

7. Balance transfer:

The process of moving part of your balance from your credit limit to the bank account you used in signing up on CredPal. This makes it easy for you to spend from your personal account if you don’t want to make the payment from the CredPal app.

Credit cards can be wonderful financial tools that offer some great benefits for those who use them to their advantage. If you have the discipline to pay off your balance each month.

Now that you know about credit cards, get started with CredPal here.



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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