What is Credit Card?
A credit card is a payment card issued to users to enable the cardholder to pay a merchant for goods and services based on the cardholder’s accrued debt.
Average Credit Card Limit In South Africa
Credit reporting agency Transunion has published a new report showing that demand for consumer credit remains high, with the total number of credit card accounts increased substantially in Q4 2019.
The group noted that credit card balances continue their upward trajectory in 2019, showing an increase of 17.9% YoY. At the same time, balances reached their highest level ever despite the slow-down in originations (new applications).
“Card issuers have been aggressive in extending more credit to offset slower growth in new consumers taking on cards,” the group said.
“Lenders continue to increase limits aggressively with total credit limit growth of 15.6% which is the fourth consecutive quarter of double-digit growth.
“This increase in balances may also be stimulated by the need for consumers to use credit as a means to finance day-to-day expenses as current economic conditions remain volatile.”
Transunion found that the average South African owes R19,265 on their credit card account, while the average credit line (the amount of credit a person may borrow from) is R32,973.